Petra Petroleum Inc. Announces Definitive Agreement With Mitra Energy Limited

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 24, 2014) -

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Further to the press release dated September 3, 2014, Petra Petroleum Inc. (the "Corporation" or "Petra") (TSX VENTURE:PTL) is pleased to announce that it has entered into the definitive agreement (the "Definitive Agreement") with Mitra Energy Limited (www.mitraenergylimited.com) ("Mitra"), an arm's length private company incorporated pursuant to the laws of Bermuda, in respect of the previously announced proposed business combination of the two companies (the "Transaction"). As previously disclosed, the Transaction will constitute a Reverse Takeover of Petra pursuant to the TSX Venture Exchange (the "Exchange") Policy 5.2 - Changes of Business and Reverse Takeovers.

Upon completion of the Transaction, Petra will be engaged in the business of exploration and development of oil and gas resources in South East Asia through Mitra. Mitra is a privately owned, independent oil and gas company focused on South East Asia, with a portfolio of exploration assets and discoveries within approximately 13.9 million acres of awarded acreage across the Philippines, Vietnam, Indonesia and Thailand. As at the date hereof, Mitra has 111,425,111 shares issued and outstanding.

Pursuant to the Definitive Agreement, the parties have agreed to complete a scheme of arrangement (the "Arrangement") in accordance with the laws of Bermuda, such that upon completion, Mitra will become a wholly owned subsidiary of Petra. Mitra will hold a shareholders meeting for the shareholders to approve the Arrangement, which is currently expected to be held in middle of December, 2014.

Highlights of the Arrangement

In addition to the Arrangement, there are a number of transactions that are occurring including such steps as, the Bridge Financing (discussed further below), a private placement Financing (discussed further below), name change of Petra and consolidations. The Arrangement and the concurrent transactions continue to be subject to any regulatory, shareholder or such other approvals as may be required and the conditions contained in the Definitive Agreement on or before December 31, 2014.