2011-05-30-2011-04-29-2011-05-31

Bought company, gaining assets at Wordsworth, Queensdale & Carlyle in SK & Joarcam, AB, & consolidates ownership permits EP103 & EP104 covering 5.7 million acres in Australia's Southern Georgina Basin, gaining 115 BOE/d.

PetroFrontier Corp., Calgary, (Toronto Venture: PFC) has closed its acquisition of Texalta Petroleum Ltd., Calgary, (Toronto Venture: TEX-A) for approximately C$56.1 million in cash and stock.

PetroFrontier issued 15.4 million shares and paid C$10 million cash to Texalta shareholders, issued an additional 222,457 PetroFrontier shares to holders of Texalta options in exchange for the cancellation of such options and 1.5 million outstanding Texalta warrants were continued or replaced with 675,000 PetroFrontier warrants at an exercise price of C$2 per share.

Texalta's assets include light oil production at Wordsworth and Queensdale in southeastern Saskatchewan and exploration properties at Carlyle, Saskatchewan, and Joarcam, Alberta. All of Texalta's current production comes from the Mississippian-Alida formation; however, Texalta holds prospective Bakken rights in addition to the conventional targets that have been drilled.

The deal also consolidates ownership of exploration permits EP103 and EP104 in Australia's Southern Georgina Basin, which features seven wells on properties covering 5.7 million acres.

Production in the Canadian assets is 115 barrels of oil equivalent per day. The Lower Arthur Creek hot shale found in EP103 and EP104 contains best estimate, un-risked, prospective recoverable oil resources of 18.8 billion barrels and best estimates of unrisked, undiscovered original oil in place of 192 billion barrels.

Macquarie Capital Markets Canada Ltd. was financial advisor to PetroFrontier. FirstEnergy Capital Corp. was financial advisor to Texalta.