Petrobank to complete test well

Calgary, AB – February 4, 2005: Petrobank Energy and Resources Ltd. (Petrobank), announced it will begin well completion on its exploration coalbed gas (CBG) well located 4.5 km southwest of Princeton, British Columbia.

Well completion prepares the well for future activity by Petrobank. It is expected to take two weeks beginning February 7. As part of the completion, Petrobank will be testing the well to help determine its production capabilities.

“This is the next step of the well life cycle,” said Gregg Smith, Vice-President, Canada, Petrobank. “While it doesn’t mean we’re going to move into active production, we’re optimistic about the results from our ongoing evaluation.”

During the second week, Petrobank may encounter natural gas and will test the rate of flow. This will result in controlled flaring at the well, which is a normal procedure adhering to strict government regulations. Flaring is comparable to the natural gas a homeowner burns to heat their house. Nearby residents are receiving information about the potential flaring

“We have a proven track record in this area,” said Smith. “Our team uses the best available technology to ensure we develop these resources as safely and responsibly as possible.”

Petrobank may also encounter water in the very deep formations accessed by the well. Any water will be disposed of in a deep, subsurface well approved by the provincial government for disposal. The company will analyze the water to determine its salt content.

Vehicular traffic near the well may increase during this period. Petrobank will monitor traffic, and a staff member will serve as flagman, if necessary, to ensure the safety of passers-by.

Petrobank is continuing to welcome questions from the community about this project. It encourages area residents who may have specific questions, suggestions or concerns to call them at 1-866-764-4671 or visit their website at www.petrobank.com.