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CALGARY, ALBERTA -- (Marketwire) -- 05/10/12 -- PetroGlobe Inc. ("PetroGlobe" or the "Company") (TSX VENTURE:PGB) announces that it has entered into a Farmout and Option Agreement ("the agreement") in the Red Earth area of Alberta with an experienced Slave Point Operator ("the farmee").
Pursuant to the terms of the agreement, on or before September 30, 2012 the farmee will spud a horizontal test well at its sole cost and drill, complete, cap, test or abandon the well to test the Slave Point formation and to earn a 75 percent working interest in four quarters of land in PetroGlobe's seven quarter farmout lands. Upon completion of the test well the farmee has the option to elect to drill a second horizontal well to earn the remaining farmout lands under the same terms.
Chief Financial Officer, Jason James, stated, "The Red Earth farmout provides an opportunity for PetroGlobe to evaluate its prospective Red Earth acreage on a timely and low risk basis, by one of the most experienced and successful Slave Point area operators."