Action Announces Closing of Equity Financing



    /NOT FOR DISSEMINATION TO UNITED STATES NEWSWIRE SERVICES OR FOR
    DISSEMINATION IN THE UNITED STATES./

    TSX-V Symbol "AEC"

    CALGARY, Dec. 21 /CNW/ - Action Energy Inc. ("Action") is pleased to
announce the closing its previously announced equity financing. Action has
issued 14,000,000 common shares (the "Common Shares") at $1.25 per Common
Share for total gross proceeds of $17,500,000 (the "Offering"). The Offering
was completed by a syndicated of Agents led by Dundee Securities Corporation
and included CIBC World Markets Inc., National Bank Financial Inc., RBC
Dominion Securities Inc., Acumen Capital Finance Partners Limited, Haywood
Securities Inc., Jennings Capital Inc., and Wellington West Capital Markets
Inc. (collectively, the "Agents"). In addition, Strategic Energy Research &
Capital, LLC, an affiliate of FCG Advisors, LLC, acted as placement agent in
the United States.
    The net proceeds of the Offering will initially be used by Action to
reduce indebtedness under its credit facilities, which will be drawn, as
needed, to fund Action's ongoing exploration and development activities and
for general working capital purposes.
    At the date of this press release, including the Common Shares issued
pursuant to the Offering, Action has 57,256,785 Common Shares outstanding and
5,368,599 options outstanding at an average exercise price of $3.65.
    Action is a Calgary based oil-weighted, publicly traded junior E&P
company that achieved a public listing through the reverse takeover of High
Plains Energy Inc. in November 2006. It has a large, diversified asset base
focused on three core areas in Western Canada and has a balanced mix of
exploration and development opportunities concentrated in core areas in
central Alberta, southern Alberta and southern Saskatchewan.
    This press release shall not constitute an offer to sell or the
solicitation of any offer to buy, nor shall there be any sale of these
securities in any jurisdiction in which such offer, solicitation or sale would
be unlawful. The common shares offered will not be and have not been
registered under the United States Securities Act of 1933, as amended (the
"U.S. Securities Act") and may not be offered or sold in the United States
absent registration or an applicable exemption from the registration
requirements of the U.S. Securities Act and applicable state securities laws.
This press release shall not constitute an offer to sell or the solicitation
of an offer to buy nor shall there be any sale of the securities in any State
in which such offer, solicitation or sale would be unlawful.

    FORWARD LOOKING STATEMENTS

    This press release may contain forward-looking statements including
expectations of future production, funds flow and earnings. These statements
are based on current expectations that involve a number of risks and
uncertainties, which could cause actual results to differ from those
anticipated. These risks include, but are not limited to: the risks associated
with the oil and natural gas industry (e.g., the impact of general economic
conditions, industry conditions, volatility of commodity prices, currency
fluctuations, imprecision of reserve estimates, environmental risks,
competition from other industry participants, the lack of availability of
qualified personnel or management, stock market volatility, ability to access
sufficient capital from internal and external sources, operational risks in
development, exploration and production; delays or changes in plans with
respect to exploration or development projects or capital expenditures; the
uncertainty of estimates and projections relating to production, costs and
expenses, and health, safety and environmental risks. Additional information
on these and other factors that could affect Action's operations or financial
results are included in Action's reports on file with Canadian securities
regulatory authorities.
    Readers are cautioned that the assumptions used in the preparation of
such information, although considered reasonable at the time of preparation,
may prove to be imprecise and, as such, undue reliance should not be placed on
forward looking statements. The actual results, performance or achievement of
Innova could differ materially from those expressed in, or implied by, these
forward-looking statements and, accordingly, no assurance can be given that
any of the events anticipated by the forward looking statements will transpire
or occur, or if any of them do so, what benefits that Action will derive
therefrom. Action disclaims any intention or obligation to update or revise
any forward-looking statements, whether as a result of new information, future
events or otherwise.

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

    For further information, the full 2006 Annual Report to Shareholders and
Annual Information Form have been posted on the Company's website:
www.action-energy.com or, alternatively, can be viewed at www.sedar.com.





For further information:

For further information: R.D. (Bob) Bowman, President and COO, Action
Energy Inc., Telephone: (403) 264-2986; Kelly D. Kerr, Vice-President, Finance
and CFO, Action Energy Inc., Telephone: (403) 723-4454; ACTION ENERGY INC.:
Suite 800, 350-7TH Avenue S.W., Calgary, Alberta, T2P 3Y3, Phone: (403)
264-1112, Fax: (403) 264-1116, Website: www.action-energy.com

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Action Energy Inc.

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