Dalmac Energy Inc.

Dalmac Energy Inc.

May 29, 2006 09:00 ET

Dalmac to Purchase $5.0 Million of Operating Equipment

EDMONTON, ALBERTA--(CCNMatthews - May 29, 2006) - John Babic, President and CEO of Dalmac Energy Inc. ("Dalmac") (TSX VENTURE:DAL) is proceeding with a $5.0 million purchase of new operating equipment.

The equipment will consist of hot oiler units, pressure trucks, sour sealed tri drive haulers, tri drive tractor units, Combination Vacs, sour sealed bulkers and various other equipment. Delivery is expected in the fall of this year.

The increasing levels of hydrocarbon drilling and production activity in the west central Alberta region is creating an excess demand for more oil field services such as those provided by Dalmac Energy Inc. Dalmac currently services the Alberta areas of Fox Creek, Hinton and Grande Cache. Current plans also include expanding coverage into the Whitecourt and Edson area of west central Alberta.

Dalmac is a provider of hot oiler, vacuum, hydro vac, pressure and tanker truck services as well as methanol/glycol delivery and distribution services. After the completion of the above purchase Dalmac will have a total of about 89 operating units.

With the current company fleet operating at full capacity, the additional purchases will enable Dalmac to meet the continued demand for its products and services. It is expected that on an annual "full run" basis these new purchases should contribute to an EBITDA lift of about $2.0 - $2.5 per year.

Dalmac is currently reviewing expansion opportunities, including acquisitions, which may involve the requirement for capital expenditures beyond the normal course for the Company. Dalmac may pursue any or all these opportunities that may present themselves. In doing so the Company may incur term debt, issue equity, or any combination of the foregoing.

WARNING: The company relies on litigation protection for "forward-looking" statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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