Petrobank's Well Testing Encouraging

Calgary, AB – March 3, 2005: The first coalbed gas (CBG) test well drilled by Petrobank last November in the Princeton area has delivered positive results. Initial tests indicate there is approximately 130 feet of coal in two horizons. The company now believes a significant amount of gas content exists in the coals. Early estimates indicate that a potential of 500 billion cubic feet (bcf) of natural gas may be contained within the coals under lands leased by Petrobank. Wells results to date clearly demonstrate a significant amount of gas is contained in the coals, but the deliverability of gas and commercial viability of a project are still largely unknown.

The company continues to evaluate its findings from this initial well. Plans for the development of a pilot testing program with additional wells to be drilled are in the early stages with a goal to start the program in the second of half of 2005.

“Once our pilot program is outlined, we will commence a variety of meetings with members of the community,” said Gregg Smith, Vice President Canada, Petrobank Energy and Resources Ltd. “The potential of our find holds many benefits for the community and British Columbia but we want to be sure people understand what our project will entail and how we will carefully manage it.”

Petrobank has already met with many officials and members of the community while developing its first CBG test well. “We are aware of the many factors surrounding CBG and believe a well informed community can best make decisions based on facts. Princeton and area residents have asked us many questions and we hope to continue to earn the reputation of being open, frank and a responsible business in the community,” said Smith.