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Press release from Marketwire

PetroBakken Announces Sale of Non-Core Southeast Saskatchewan Assets

Thursday, January 19, 2012

PetroBakken Announces Sale of Non-Core Southeast Saskatchewan Assets06:45 EST Thursday, January 19, 2012CALGARY, ALBERTA--(Marketwire - Jan. 19, 2012) - PetroBakken Energy Ltd. ("PetroBakken" or the "Company") (TSX:PBN), is pleased to announce that we have entered into an agreement to sell our entire working interest in the southeast Saskatchewan Weyburn unit (approximately a 2.2% interest) (the "Assets") for gross proceeds of $105 million, subject to adjustments. The Assets include 580 boepd of production (based on field estimates from December 2011). The transaction will have an effective date of January 1, 2012 and, subject to satisfaction of all conditions and receipt of required regulatory approvals, is expected to close by the end of February 2012. Approximate transaction metrics in respect of this sale of these non-core Assets are $180,000 per flowing boe (based on field estimated December 2011 average production), 9 times 12 month trailing cash flow (October 2010 to October 2011) and $23 per boe of gross proved plus probable reserves.PetroBakken Energy Ltd. is an oil and gas exploration and production company combining light oil Bakken and Cardium resource plays with conventional light oil assets, delivering industry leading operating netbacks, strong cash flows and production growth. PetroBakken is applying leading edge technology to a multi-year inventory of Bakken and Cardium light oil development locations, along with a significant inventory of opportunities in the Horn River and Montney gas resource plays in northeast BC. Our strategy is to deliver accretive production and reserves growth, along with an attractive dividend yield.BOEs.Natural gas volumes have been converted to barrels of oil equivalent ("boe"). Six thousand cubic feet ("Mcf") of natural gas is equal to one barrel of oil equivalent based on an energy equivalency conversion method primarily attributable at the burner tip and does not represent a value equivalency at the wellhead. Boes may be misleading, especially if used in isolation.Forward Looking Statements.Certain information provided in this press release constitutes forward-looking statements. Specifically, this press release contains forward-looking statements relating to our proposed sale of the Assets and the timing thereof. The forward-looking statements are based on certain key expectations and assumptions, including expectations and assumptions concerning the ability of the parties to the sale to satisfy the conditions to the transaction and complete the sale. Although we believe that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because we can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; risks associated with application for and receipt of required regulatory approvals; risks that the proposed sale of the assets is not completed as a result of a failure to satisfy one of the conditions to the offering; and general economic conditions. Certain of these risks are set out in more detail in our Annual Information Form which has been filed on SEDAR and can be accessed at www.sedar.com. Except as may be required by applicable securities laws, PetroBakken assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.FOR FURTHER INFORMATION PLEASE CONTACT: John D. WrightPetroBakken Energy Ltd.President and Chief Executive Officer403.268.7800ORPeter D. ScottPetroBakken Energy Ltd.Senior Vice President and Chief Financial Officer403.268.7800ORR. Gregg SmithPetroBakken Energy Ltd.Senior Vice President and Chief Operating Officer403.268.7800ORWilliam A. KantersPetroBakken Energy Ltd.Vice President, Capital Markets403.268.7800ir@petrobakken.comwww.petrobakken.com