Petrobank continues CBG well evaluation

Calgary, AB – January 20, 2005: Petrobank Energy and Resources Ltd. (Petrobank), is continuing extensive testing of the recently drilled exploration coalbed gas (CBG) well located 4.5 km southwest of Princeton, British Columbia. Initial testing should commence within 3 weeks and more extensive testing of the well will be ongoing for the next couple of months. The comprehensive results will help Petrobank plan the future of the project.

“Early indications from all the well data and coal samples have us optimistic,” said Gregg Smith, Vice-President, Canada, Petrobank. “But we are completing a thorough examination of all data to help us make the best decisions about our next steps.”

The drilling was conducted to determine the natural gas productivity of the subsurface coal. The exploration well encountered about 130 feet of coal in two horizons with associated gas indications. Testing over the next three months will allow Petrobank and its partners to thoroughly examine all data from the well including from zones that are not associated with coal. This process will provide geological information important to any future development.