Action announces proposed financing and filing of preliminary short form prospectus



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

    TSX-V Symbol "AEC"

    CALGARY, Dec. 4 /CNW/ - Action Energy Inc. ("Action" or the "Company")
announced today that it has filed a preliminary short form prospectus in
respect of an equity financing (the "Offering"), on a "commercially reasonable
efforts" basis, of up to $12.5 million of common shares of Action, through a
syndicate of agents led by Dundee Securities Corporation and including 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, will be acting as placement agent in the
United States in respect of common shares of Action to be issued under the
Offering to U.S. buyers pursuant to applicable exemptions from the U.S.
registration requirements. The issue price of Action's common shares to be
sold in connection with the Offering will be determined in the context of the
market. The Agents have the option, exercisable 48 hours prior to closing, to
increase the Offering by up to an additional $5 million of common shares at
the issue price.
    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.
    All securities issued in connection with the Offering will be freely
tradable under applicable securities laws in force in Canada. The Offering is
scheduled to close on or about December 21, 2007 and is subject to certain
conditions including, but not limited to, the receipt of all necessary
approvals, including the approval of the TSX Venture Exchange, and completion
of due diligence by the Agents.
    The securities being offered have not been registered under the United
States Securities Act of 1933, as amended, and may not be offered or sold in
the United States or to, for the account or benefit of, U.S. Persons absent
U.S. registration or an applicable exemption from the U.S. registration
requirements. This press release does not constitute an offer to sell or the
solicitation of an offer to purchase securities in the United States.
    At the date of this press release, the Company had 43,256,785 common
shares outstanding and 5,368,599 options outstanding at an average exercise
price of $3.65.
    Action Energy Inc. is a Calgary based oil-weighted, publicly traded
junior E&P company that completed a 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.

    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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