SignalEnergy Inc.

December 13, 2006 23:59 ET

SignalEnergy Announces Normal Course Issuer Bid

CALGARY--(CCNMatthews - Dec. 13) - SignalEnergy Inc. ("Signal") today announced that, subject to regulatory approval, it intends to purchase certain of its common shares by way of a normal course issuer bid (the "Bid") through the facilities of the Toronto Stock Exchange (the "TSX"). Signal may purchase up to a maximum of 4,480,799 common shares, which represents approximately 5% of its current issued and outstanding common shares, during the twelve month term of the Bid, which will commence on December 15, 2006 and terminate on December 14, 2007 or at such earlier date as Signal completes its purchases. In any 30 day period during the term of the Bid, Signal may purchase up to, but not more than, 2% of its issued and outstanding common shares. As of December 13, 2006 the Corporation has 89,615,982 issued and outstanding common shares.

All purchases under the Bid will be effected through the facilities of the TSX at the then current market price of the common shares of Signal as traded on the TSX. The Directors of Signal are of the view that the current market price of the common shares is lower than the net asset value per share and consequently, the Directors are of the opinion that the repurchase of the common shares represents a sound business decision for the Corporation. All common shares purchased under the Bid will be cancelled. Shareholders of Signal will be advised of the Bid in the next report of Signal to be mailed to Shareholders and a copy of the Notice of Intention to Make a Normal Course Issuer Bid can be obtained from Signal without charge.

Signal is a publicly traded company listed on the Toronto Stock Exchange under the symbol "SGI".

Caution to Reader

This news release contains forward-looking statements and the reader is cautioned not to place undue reliance on these statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. This specifically includes whether Signal will purchase any shares under the Bid. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predications, forecasts, projections and other forward-looking statements will not occur.

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