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Press release from Marketwire

PetroBakken Announces Closing of Senior Unsecured Notes Offering Of US$900 Million

Monday, January 30, 2012

PetroBakken Announces Closing of Senior Unsecured Notes Offering Of US$900 Million09:31 EST Monday, January 30, 2012CALGARY, ALBERTA--(Marketwire - Jan. 30, 2012) -NOT FOR DISSEMINATION IN THE UNITED STATES OR RELEASE OVER UNITED STATES WIRE SERVICESPetroBakken Energy Ltd. ("PetroBakken" or "Company") (TSX:PBN) announces that we have closed our previously announced private placement offering of senior unsecured notes (the "Notes") in an aggregate principal amount of US$900 million, resulting in net proceeds to the Company of approximately US$875 million after deduction of original issue and initial purchaser discounts and estimated offering expenses. The Notes bear interest at a rate of 8.625% per annum and mature February 1, 2020. Proceeds from the Notes Offering are being used to repurchase and cancel US$450 million of convertible debentures, which will settle on January 31, 2012, with the remainder used to repay a portion of our secured credit facility. We expect, following the closing of the Notes offering and completion of our previously announced non-core asset sale of our interest in the southeast Saskatchewan Weyburn Unit, to have approximately $675 million drawn on our credit facility, which is being increased to $1.5 billion effective January 31, 2012.The Notes have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws and, unless so registered, may not be offered or sold in the United States or to U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. Certain information provided in this press release constitutes forward-looking statements. Specifically, this press release contains forward-looking statements relating to the completion of certain transactions set out herein and our anticipated liquidity position and debt levels. The forward-looking statements are based on certain key expectations and assumptions, including expectations and assumptions concerning the completion of our previously announced asset sale, convertible bond repurchase and credit facility increase. 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 general economic and market conditions impacting the successful completion of the transactions set out herein and our ability to satisfy the conditions to such transactions. 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 Officer(403) 268.7800ORPeter D. ScottPetroBakken Energy Ltd.Senior Vice President and Chief Financial Officer(403) 268.7800ORR. Gregg SmithPetroBakken Energy Ltd.Senior Vice President and Chief Operating Officer(403) 268.7800ORWilliam A. KantersPetroBakken Energy Ltd.Vice President Capital Markets(403) 268.7800OREighth Avenue Place, 2800, 525 - 8th Avenue S.W.PetroBakken Energy Ltd.Calgary, Alberta T2P 1G1403.268.7800403.218.6075 (FAX)ir@petrobakken.comwww.petrobakken.com