Petrobank to continue operations in Princeton

Calgary, AB – July 16, 2007: Petrobank Energy and Resources Ltd. is planning to drill two wells in the Princeton area and will increase dialogue with the community about its plans for these coalbed gas (CBG) evaluation wells. This continuing work is part of a thorough study of the local CBG basin that began with a test well 4.5 km southeast of Princeton in 2005.

“We learned a lot about the composition of this basin with our last well,” says Gregg Smith, Vice President Canada, Petrobank. “We are about the start the next leg of our journey and we want to be sure that the community clearly understands our plans.”

Petrobank will soon be contacting affected landowners about the company’s plans. Once done, the company will release its plans in greater detail with a local open house and will continue to provide the Princeton media with news releases and interviews along with publishing information advertisements. In early July, Petrobank visited Princeton officials to provide an update and answer questions from Town Council.

“It is our goal is to share all the facts about our work in Princeton and we want to do that in a very public fashion,” says Smith. “Our experience in Princeton has been very positive and this is in part because of our open communication with the community.”

Future information from Petrobank will include a detailed drilling schedule, location and information about environmental protection, water management and safety activities. The company’s goal is to not only meet but exceed governmental regulations regarding water disposal, protection of the environment and community consultation.

“We’re proud of our local track record,” says Smith. “In our entire history in Princeton, whenever we said we’d do something, we did it and did it well.”

Over the past 18 months, Petrobank has purchased advertising in the local newspapers sharing information about the company’s activity in the area and CBG drilling in general. The company maintains 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.

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.

More information about Petrobank and its operations can be found at www.petrobank.com.