Petrobank’s CBG Test Well a “Success”

Calgary, AB – January 27, 2006: Petrobank Energy and Resources Ltd. has completed evaluation of its coalbed gas (CBG) test well located 4.5km southwest of Princeton and is considering plans for future development.

“I can say this well was a success and has helped to understand the geological characteristics of the reservoir,” says Gregg Smith, Vice President Canada, Petrobank. “Without this knowledge about the composition of this basin we would not be in a position to advance further pilot activities in the area.”

In the coming months, Petrobank will develop plans for an expanded pilot program in the Princeton area. The company expects to start-up a new project in the fall of 2006.

In the meantime, Petrobank will be running a series of information ads in the local papers to help residents better understand the operations of natural gas from coal facilities. As the details for this project become available, Petrobank will commence a very active community consultation program through the local papers, one-on-one visits with residents and public town hall meetings.

“It’s very important to us that everyone in the community clearly understands our project and what we hope to do,” says Smith. “Our goal is to share non-confidential facts about our work in Princeton and we want to do that in a very public fashion.”

Petrobank is maintaining a dedicated toll-free line (1-866-764-4571) for Princeton residents to ask questions about CBG and the company’s role in the community. The company also posts information about the project on its website at www.petrobank.com. As the company completes its plans for future development, it intends to hold public meetings to explain how future development might unfold.

Further information about CBG can be found through the Canadian Society for Unconventional Gas at www.csug.ca. Petrobank operates under the British Columbia Coalbed Gas Code of Practice which can be found on the Ministry of Environment website through www.gov.bc.ca.