Petrobank to Abandon its Ojo de Tigre Well in Colombia

Petrobank Energy and Resources has completed the drilling and logging operations on the Ojo de Tigre-1 exploration well on its Joropo Block in the Llanos Basin of Colombia. The well spudded on February 14, 2006 and on March 8th, reached total depth of 8,616 feet in the Cretaceous Gacheta Formation. The targeted C7/Mirador sands were flat to the original Joropo-1 well, drilled in 1985, and low to our prognosis. Logs were run and evaluated, indicating that all potential sands in the Tertiary Carbonera and Mirador formations are predominantly wet or contain non-commercial hydrocarbon saturations and the well will be plugged and abandoned.

Petrobank Energy and Resources Ltd. is a Calgary-based oil and natural gas exploration and production company with operations in western Canada and Colombia. The Company operates high-impact projects through three business units. The Canadian Business Unit combines conventional oil and gas operations with two higher potential coalbed methane opportunities. The Latin American Business Unit produces oil through two Incremental Production Contracts in Colombia and has new exploration contracts covering a total of 2.5 million acres in the Llanos and Putumayo Basins. The Heavy Oil Business Unit owns 38,400 acres of oil sands leases and is constructing the WHITESANDS pilot project to field-demonstrate Petrobank's patented THAI(TM) heavy oil recovery process. THAI(TM) is an evolutionary in-situ combustion technology for the recovery of bitumen and heavy oil that combines a vertical air injection well with a horizontal production well. THAI(TM) integrates existing proven technologies and provides the opportunity to create a step change in the development of heavy oil resources globally.