Milagro Energy Inc.
TSX : MIG

Milagro Energy Inc.

April 24, 2007 11:21 ET

Milagro Energy Inc. Provides Operational and Financial Update

CALGARY, ALBERTA--(CCNMatthews - April 24, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Milagro Energy Inc. (TSX:MIG) ("Milagro" or the "Company") is pleased to announce that the Company and its working interest partners have drilled and cased their first step out well at Rigel East, B.C. The well is currently being completed and production tested for a dual zone gas well. Milagro has a 37.5 percent working interest and four follow-up locations.

The Company has also acquired the necessary land governmental approvals for the Swanhills Reef test in the Judy Creek Beaver Hill Lake "A" Pool and the first horizontal Pekisko gas and oil location also at Judy Creek. Drilling operations are expected to commence after break-up at Judy Creek and following the successful closing of the Company's previously announced equity financing and debt restructuring. Milagro now anticipates that the closing of the current public offering and the completion of the refinancing of its existing bridge credit facility will occur on or before May 25, 2007 which is now the maturity date of the existing credit facility and the expiry date of the Company's restructuring agreement with Brookfield Bridge Lending Fund Inc.

Milagro is an exploration and production company engaged in the acquisition, exploration, development and production of oil and natural gas reserves in western Canada.

READER ADVISORY

Statements in this press release may contain forward-looking information including expectations of funds to be raised in a financing, production, and future capital expenditures and cash flow. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the company. These risks include, but are not limited to, the risks associated with the oil and gas industry, commodity prices, general economic conditions, conditions in the capital markets in Canada and elsewhere and exchange rate changes. Industry related risks could include, but are not limited to, operational risks in exploration, development and production, delays or changes in plans, risks associated with the uncertainty of reserve estimates, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. The reader is cautioned not to place undue reliance on this forward-looking information.

These securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state, and may not be offered or sold in the United States unless an exemption from registration is available. This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities in the United States.

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