PetroBakken Announces $427 Million Sale of Non-Core Southeast Saskatchewan Bakken Assets

CALGARY, ALBERTA--(Marketwire - Feb. 16, 2012) - PetroBakken Energy Ltd. ("PetroBakken" or the "Company") (TSX:PBN), announces that we have entered into an agreement to sell certain non-core southeast Saskatchewan assets (the "Non-Core Assets") to Crescent Point Energy Corp. for gross cash proceeds of $427 million, subject to closing adjustments (the "Transaction"). The Non-Core Assets are considered to be outside the key focus of our Bakken Business Unit as they are largely non-operated and generally have lower average working interest than our remaining lands. Proceeds from the Transaction will initially be used to further pay down our credit facility, leaving at least $1.1 billion in available borrowing capacity. As a result of this sale, we will be revising our capital plan and may increase spending in the second half of 2012, primarily in the Cardium area. We will provide revised guidance with respect to our 2012 expected capital spending and exit production levels in the near future.

Non-Core Asset Details:

• Approximately 2,900 boepd of Bakken light oil production (January 2012 field estimate)
• 10.5 million boe (7% gas) of gross proved plus probable reserves (as evaluated by Sproule Associates Limited according to NI 51-101 effective January 1, 2012)
• 20,360 net acres of land, which includes 14,030 net developed acres

Key Metrics of the Transaction:

• $147,250 per flowing boe (January 2012 field estimate)
• $40.50 per boe of gross proved plus probable reserves (excluding future development capital of $67 million)
• 7 times annualized current cash flow
• 5.5% of December 2011 Company production

The Bakken Business Unit will continue to represent a significant portion of our corporate asset base as this sale represents only 7% of the Business Unit's land holdings and approximately 12% of its production. Assuming successful completion of this Transaction, our average working interest in our remaining Bakken Business Unit lands will increase from 82% to 86% and we will continue to have over 700 net drilling locations in the Business Unit, representing approximately 10 years of drilling inventory.

TD Securities Inc. acted as financial advisor to PetroBakken on the Transaction.

The Transaction will have an effective date of January 1, 2012 and, subject to satisfaction of all conditions and receipt of required regulatory approvals, is expected to close in mid March, 2012.

PetroBakken Energy Ltd. is an oil and gas exploration and production company combining light oil Bakken and Cardium resource plays with conventional light oil assets, delivering industry leading operating netbacks, strong cash flows and production growth. PetroBakken is applying leading edge technology to a multi-year inventory of Bakken and Cardium light oil development locations, along with a significant inventory of opportunities in the Horn River and Montney gas resource plays in northeast BC. Our strategy is to deliver accretive production and reserves growth, along with an attractive dividend yield.

BOEs. Natural gas volumes have been converted to barrels of oil equivalent ("boe"). Six thousand cubic feet ("Mcf") of natural gas is equal to one barrel of oil equivalent based on an energy equivalency conversion method primarily attributable at the burner tip and does not represent a value equivalency at the wellhead. Boes may be misleading, especially if used in isolation.

Forward Looking Statements. Certain information provided in this press release constitutes forward-looking statements. Specifically, this press release contains forward-looking statements relating to our proposed sale of the Assets and the timing thereof, our proposed use of proceeds and the nature of our assets following completion of the Transaction. The forward-looking statements are based on certain key expectations and assumptions, including expectations and assumptions concerning the ability of the parties to the sale to satisfy the conditions to the transaction and complete the sale. Although we believe that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because we can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production); risks associated with application for and receipt of required regulatory approvals; risks that the proposed sale of the assets is not completed as a result of a failure to satisfy one of the conditions to the offering; and general economic conditions. Certain of these risks are set out in more detail in our Annual Information Form which has been filed on SEDAR and can be accessed at www.sedar.com. Except as may be required by applicable securities laws, PetroBakken assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.