2010-10-21-2010-10-14

To buy additional 25% interest in in Block 126 in east-central Peru.

Petrominerales Ltd., (Toronto: PMG), a 66%-owned subsidiary of Petrobank Energy and Resources Ltd., Calgary, (Toronto: PBG) plans to acquire an additional 25% interest from Veraz Petroleum Ltd., Calgary, (Toronto Venture: VRZ) in Block 126 in east-central Peru for a total US$14.75 million.

Petrominerales will pay Veraz US$6.75 million in cash to carry for expenditures incurred through the upcoming drilling program and a bonus of up to US$8 million based on reaching certain aggregate production levels on Block 126.

The companies have finalized the drilling locations for Block 126. Initial infrastructure and roadwork will proceed shortly with drilling planned for the second quarter of 2011.

Petrominerales has granted Veraz a 20% working interest in Block 161 in the Ucayali Basin and Block 141 in the Titicaca Basin. Blocks 141 and 161 were acquired by Petrominerales through its acquisition of Pan Andean Resources Plc in April.

Block 141 is 1.3 million acres in size and is currently held 100% by Petrominerales. Current commitments, to be completed by May 2011, include the acquisition, processing and interpretation of 300 kilometers of 2-D seismic.

Block 161 is 1.2 million acres in size and is currently held 100% by Petrominerales. Current commitments, to be completed by June 2012, include the acquisition of 350 kilometers of new 2-D seismic data and an updated geological and geophysical report incorporating existing geological data and reprocessed seismic.