PetroCorp Group Inc. Announces Fair Market Value For Return of Capital

EDMONTON, Dec. 17 /CNW/ - PetroCorp Group Inc. (PCG.H: NEX) (the "Corporation"), announces today that further to its previous press release of December 3, 2010 with respect to the planned distribution of 17,857,043 trust units of Petrowest Energy Services Trust (the "Units") held by the Corporation to its registered shareholders ("Shareholders"), on a pro rata basis, the fair market value of each Unit has been determined by the Corporation to be $0.16 per Unit based on a five trading day average of the Units to December 15, 2010. This valuation is not binding on the Canada Revenue Agency.

Shareholders of the Corporation will receive 0.246907 Units for each share held of the Corporation as of the record date on December 15, 2010. Shareholders with an adjusted cost base of their investment in the Corporation in excess of $0.03950512 per share should not be subject to tax as a result of this distribution, but the adjusted cost base of their investment in the Corporation should be reduced by the amount of the distribution they receive. A capital gain should be realized by those Shareholders for the amount by which the return of capital distribution exceeds their adjusted cost base. The Corporation is not required, nor does it intend to issue any reporting slips with respect to this distribution, and accordingly any tax reporting slips which Shareholders may receive will not reflect this distribution.

The Corporation suggests that Shareholders obtain specific tax guidance where required, and in particular with respect to non-residents, which may be subject to different tax provisions and consequences according to their local jurisdictions and tax laws.

Neither the NEX, nor its Regulatory Services Provider (as that term is defined in the policies of the NEX) accepts responsibility for the adequacy or accuracy of this release.

For further information:

Larry Patriquin, CEO at [phone], or Randy Fries, Interim CFO, at [phone]