Milagro Energy Inc.
TSX : MIG

Milagro Energy Inc.

May 06, 2008 11:08 ET

Offer for Milagro Energy Inc. Is Successful and Is Extended

CALGARY, ALBERTA--(Marketwire - May 6, 2008) - Milagro Energy Inc. (TSX:MIG) ("Milagro") announced today that all conditions of the offer (the "Offer") dated March 28, 2008 by Second Wave Petroleum Ltd. ("Second Wave") and its wholly-owned subsidiary Second Wave Holdings Ltd. ("Holdings") to acquire all of the issued and outstanding common shares of Milagro (the "Milagro Shares") have been satisfied. An aggregate of 115,351,528 Milagro Shares, which represents approximately 68.81% of the issued and outstanding Milagro Shares on a fully-diluted basis, were tendered by the Offer deadline.

Second Wave and Holdings will proceed with the Offer and take-up and pay for the Milagro Shares deposited pursuant to the Offer on the basis of one unit of Second Wave (a "Unit") for every Milagro Share on Thursday, May 8, 2008 with closing expected to occur on the same date. Each Unit is comprised of 0.0298 of a Class A Share of Second Wave and 0.0298 of a share purchase warrant of Second Wave.

Second Wave has also extended the Offer until 4:30 p.m. (Calgary time) on May 23, 2008. Milagro shareholders are encouraged to tender their Milagro Shares to the extended Offer, as the Milagro Shares are expected to be delisted from the Toronto Stock Exchange after May 31, 2008. If less than an aggregate of 90% of the Milagro Shares have been deposited to the Offer prior to the extended expiry time, Second Wave may further extend the Offer or implement other procedures to complete its acquisition of all of the Milagro Shares.

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 with respect to the outcome of 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, 2007 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