Milagro Energy Inc.
TSX : MIG

Milagro Energy Inc.

March 18, 2008 23:26 ET

Milagro Energy Inc. Sells Kakwa Region Assets

CALGARY, ALBERTA--(Marketwire - March 18, 2008) - Milagro Energy Inc. ("Milagro") (TSX:MIG) announced today that it has sold certain oil and natural gas assets in the Kakwa region of Alberta to an unrelated third party for gross sale proceeds of approximately $500,000. The properties that were sold accounted for approximately 8 BOE per day of production, net to Milagro. Accordingly, the sale price represented approximately $62,500 per flowing BOE. The net proceeds of the sale, after payment of amounts due to the purchaser, are approximately $349,000, and are being applied by Milagro toward the repayment of a portion of Milagro's outstanding debt. Second Wave Petroleum Ltd. ("Second Wave"), which has agreed to make an offer to acquire all of the common shares of Milagro, has consented to this transaction, and Milagro does not expect the property sale to have an effect on Second Wave's proposed acquisition of Milagro.

ABOUT MILAGRO

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 ADVISORIES

BOEs (barrels of oil equivalent) may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf of natural gas to 1 barrel of oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Statements in this press release may contain forward-looking information, including statements of the expectations of Milagro's management to the effect of the transaction described herein on the proposed acquisition of Milagro by Second Wave. 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 Milagro. The reader is cautioned not to place undue reliance on this forward-looking information. See "Risk Factors" in Milagro's annual information form for the year ended December 31, 2006 for a discussion of risks faced by Milagro.

Contact Information

  • Milagro Energy Inc.
    Jeffrey Rekunyk
    CEO
    (403) 693-4006
    or
    Milagro Energy Inc.
    Travis Doupe
    CFO
    (403) 693-4007
    Website: www.milagroenergy.com