Petra Petroleum Inc. Closes Private Placement Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 13, 2011) - Petra Petroleum Inc. (TSX VENTURE:PTL) (the "Corporation") is pleased to announce that it has successfully completed its previously announced brokered private placement (the "Private Placement") of 22,985,000 common shares of the Corporation (the "Common Shares") at a purchase price of $0.40 per Common Share for aggregate gross proceeds of $9,194,000.

The Corporation received conditional approval of the Private Placement from the TSX Venture Exchange (the "Exchange") on June 29, 2011. The Common Shares are subject to a hold period under applicable securities laws until November 14, 2011.

Jones, Gable & Company Limited (the "Agent") acted as the exclusive agent for the Private Placement. The Corporation paid the Agent a commission of 7% of the gross proceeds of the Private Placement and issued a compensation option entitling the Agent to subscribe for 1,608,950 Common Shares with an exercise price of $0.40 per Common Share, exercisable for a period of 24 months after the date of closing.

Tyrus Capital LLP manages certain funds that subscribed for 22,500,000 Common Shares (representing 36.82% of the issued and outstanding Common Shares upon completion of the Private Placement). Prior to the completion of the Private Placement, the funds managed by Tyrus Capital LLP held no Common Shares. Tyrus Capital LLP has become a "control person" as defined in the rules and policies of the Exchange as a result of the Private Placement. The Corporation has received the requisite written consents from disinterested shareholders that hold more than 50% of the issued and outstanding voting shares of the Corporation held by all disinterested shareholders for the creation of a new control person.

The net proceeds of the Private Placement will be used by the Corporation for general working capital purposes and to pay costs associated with future acquisitions.

Cautionary Statements

This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes statements with respect to the Corporation's use of proceeds from the Private Placement. The intended use of proceeds might change if the board of directors of the Corporation determines that it would be in the best interests of the Corporation to deploy the proceeds for some other purpose. Undue reliance should not be placed on such forward-looking information, which only applies as of the date of this news release, and no assurance can be given that such events will occur. The Corporation disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.