Dalmac Energy Inc.

Dalmac Energy Inc.

May 02, 2007 13:21 ET

Dalmac Purchases Business of North End Oil Industries

EDMONTON, ALBERTA--(CCNMatthews - May 2, 2007) - John Babic, President and CEO of Dalmac Energy Inc. ("Dalmac") (TSX VENTURE:DAL) reports Dalmac has closed its acquisition of the business and assets of North End Oil Industries Ltd. (North End) of Warburg Alberta. North End is a 30 year old private oilfield services company with 15 service units similar to those currently operated by Dalmac.

Pursuant to the terms of the letter of intent announced February 8, 2007 the purchase price was $1,925,000.00, consisting of $1.5- million cash, $375,000 promissory note payable over 3 years, and $50,000 in shares issued at $0.54 per share for a total of 92,592 shares.

The North End employees will remain with the Company and operations will continue to be based out of Warburg, Alberta. This acquisition is very accretive to Dalmac's operations and will increase the current number of service units from 87 to 102. In addition to an immediate increase to existing revenue, earnings and cash flows, Dalmac also expects to benefit from the opportunity to deploy its existing products and services into a new geographic market area.

Statements throughout this report that are not historical facts may be considered "forward looking statements". Such statements are based on current expectations that involve risks and uncertainties, which could cause actual results to differ from those anticipated. Important factors that can cause anticipated outcomes to differ materially from actual outcomes include the impact of general economic conditions, industry conditions, competition from other industry participants, volatility of petroleum prices, the ability to attract and retain qualified personnel, changes in laws or regulations, currency fluctuations, continued ability to access capital from available facilities and environmental risks. References in this MD&A to "Dalmac", the "Corporation", "Company", "us", "we" and "our" mean Dalmac Energy Inc. and its subsidiary Dalmac Oilfield Services Inc.

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

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