PetroReal Energy Inc. Provides Additional Update on Its Alberta and Louisiana Properties, and 2008 Q3 MD&A

PetroReal Energy Inc. (TSX VENTURE:PNI) ("PetroReal" or "Company") provides an
update to its January 12, 2009 press release and its 2008 third quarter
management discussion and analysis (MD&A).


Current production from the Company's Alberta and Louisiana properties is stable
as was filed in the 2008 third quarter filing; however, a decline in oil and
natural gas commodity prices over the last several months has resulted in
reduced cash flow.


The Company's January 12, 2009 press release disclosed that all revenue from the
month of October 2008 has been applied to a well abandonment required by the
State of Louisiana. That abandonment work is currently underway. In addition,
PetroReal management anticipates that all revenue from November and part of
December of 2008 will also be applied to that abandonment work. At this time and
until we receive joint venture statements from the operator, we are unable to
quantify the exact revenue loss due to the structure and marketing arrangements
of the joint venture in Louisiana. Without the abandonment or other work, those
payments would normally have been received in December 2008, January 2009 and
February 2009. The cost of the abandonment work and allocation of revenue
thereto will be reflected in the year end financials for 2008 and Q1 2009.


Because of the reduced cash flow available to the Company due to lower commodity
prices and the application of its U.S. revenue to the abandonment costs,
PetroReal management has taken several strategic steps to reduce costs. Overall
general and administrative expenses have been reduced by decreasing office
space, personnel, and consultants in a logical manner to a level that is
financially sustainable. In addition, management has taken steps to reach
agreements will all major creditors to defer some of the accounts payable
payments until the short term cash flow deficiency is resolved. PetroReal
management, officers and Directors have also deferred any and all compensation
until this short term set back is resolved. With these measures in place, it is
anticipated that most of the strain on the Company's cash flow and working
capital will be resolved over the next three to six months.


PetroReal management has conducted an internal review of potential capital
programs on non-producing or undeveloped properties, current commodity prices
and potential returns on investment. The review resulted in management deferring
any capital commitments until commodity prices stabilize and a reasonable return
on investment can be expected. In addition, the management continues to review
opportunities to divest those non-producing or undeveloped properties.


The Company also advises of a correction to the press release with Sedar filing
date of January 15, 2009. The date on the press release should be January 12,
2009, not December 12, 2008. The press release disseminated through the newswire
displayed the correct date.


PetroReal management also continues to review and adjust plans as required to
maximize the Company's opportunities and is committed to creating value for
shareholders.


About PetroReal Energy Inc.

The Corporation is a Calgary based, emerging, TSX Venture Exchange listed
company that is focused on exploration, development and production of crude oil
and natural gas, primarily in North America. The Company operations are located
in central and southern Alberta, southwestern Saskatchewan and Louisiana in the
USA.


Forward-Looking Statements

This news release contains statements about oil and gas production and operating
activities that may constitute "forward-looking statements" or "forward-looking
information" within the meaning of applicable securities legislation as they
involve the implied assessment that the resources described can be profitably
produced in the future, based on certain estimates and assumptions.


Forward looking statements are based on current expectations, estimates and
projections that involve a number of risks, uncertainties and other factors that
could cause actual results to differ materially from those anticipated by the
Company and described in the forward-looking statements. These risks,
uncertainties and other factors include, but are not limited to, adverse general
economic conditions, operating hazards, drilling risks, inherent uncertainties
in interpreting engineering and geologic data, competition, reduced availability
of drilling and other well services, fluctuations in oil and gas prices and
prices for drilling other well services, government regulation and foreign
political risks, fluctuations in the exchange rate between Canadian and US
dollars and other currencies, as well as other risks commonly associated with
the exploration and development of oil and gas properties. Additional
information on these and other factors, which could affect the Company's
operations or financial results, are included in the Company's reports on file
with Canadian securities regulatory authorities. We assume no obligation to
update forward-looking statements should circumstances or management's estimates
or opinions change unless otherwise required under securities law.