Action Energy Inc. (AEC - TSX Venture Exchange) Announces Exploration Results In Three New Light Oil Pool Discoveries



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    CALGARY, Oct. 18 /CNW/ - Action Energy Inc. ("Action") is pleased to
announce the Company's exploration efforts in the Peace River Arch and Central
Alberta have yielded three significant light oil pool discoveries. The Company
has identified up to 11 follow-up locations on these new discoveries, a number
of which could be drilled as part of the 2008 development program. These
discoveries increase the total number of exploration successes in this
business unit to five, including two previously announced Leduc pool
discoveries in Sylvan Lake.
    The 6-26-73-21W5 Gilwood oil discovery in McLeans Creek encountered
approximately 35 feet of oil column having an average porosity of 12% in the
pay zone. Production commenced from the well in October with an initial
production rate of 200 bopd and average rates of 122 bopd. Action has
identified four additional follow-up lower risk development locations to
delineate the pool. Action operates the well and holds a 100% working interest
in the new 350 API oil gravity discovery. Action has an extensive seismic data
base and a 25 section (100% WI) land block in the McLeans Creek area.
    In the same land block, Action has made another Gilwood light oil
discovery. The new oil accumulation is approximately two miles northeast of
the first 6-26 discovery well. The 16-36-73-21W5 well encountered a total of
30 feet of oil column having an average porosity of 12% in the pay zone.
Completion operations are currently underway with production expected to
commence in November. If successful, Action has identified three additional
follow-up lower risk development locations to delineate this new discovery.
    Action is also pleased to announce a third new pool discovery in the
Sylvan Lake area of Central Alberta. The 11-24-38-4W5 Leduc light oil
discovery commenced production in October at restricted rates of approximately
75 bopd. Production is currently constrained by third party facilities which
are expected to be expanded and optimized as early as November 2007, at which
time production rates would be expected to increase materially. The 11-24 well
encountered a total of 65 feet of oil column having an average porosity of 10%
in the pay zone. Action has a 100% working interest in the new 410 API oil
gravity discovery before well cost and facility payout and a net 65% after
payout. This Leduc pinnacle reef is the third consecutive new pool the Company
has discovered in the Sylvan Lake area. 3-D seismic shows a sizeable reef
complex of as many as four additional follow-up locations (65% WI). Combined
with the two development locations (15% WI) associated with the 9-15 and 10-14
discoveries, the 11-24 discovery brings a total of six Leduc development
locations to the Company drilling inventory.
    Action is encouraged by the results of its light oil exploration efforts
which further enrich its already large exploitation opportunities. In addition
to the low risk infill horizontal heavy oil wells at Lloydminster and shallow
gas upsides at Shackleton, this premium priced light oil drilling inventory
coupled with the light oil infill locations obtained through the Rolling
Thunder acquisition, further diversifies and enhances our existing drilling
portfolio.

    FORWARD LOOKING STATEMENTS

    Certain information set forth in this document, including management's
assessment of the Company's future plans and operations, contains
forward-looking statements. When used in this document, the words
"anticipate," "believe," "estimate," "expect," "intend," "may," "project,"
"plan", "will", "should" and similar expressions are intended to be among the
statements that identify forward-looking statements. By their nature,
forward-looking statements are subject to numerous risks and uncertainties,
many of which are beyond the Company's control, including 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 and ability to
access sufficient capital from internal and external sources. 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 Company's actual results, performance or achievement could
differ materially from those expressed in, or implied by, these
forward-looking statements. No assurance can be given that any of the events
anticipated will transpire or occur, or if any of them do so, what benefits
the Company will derive from them. The Company disclaims any intention or
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.

    Oil equivalent amounts have been calculated using a conversion rate of
six thousand cubic feet of natural gas to one barrel of oil. BOEs may be
misleading, particularly if used in isolation. A BOE conversion ratio of
6 mcf: 1 bbl is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value equivalency at the
wellhead.

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

    %SEDAR: 00001728E




For further information:

For further information: Roger Tang, Chairman and CEO, Action Energy
Inc., Telephone: (403) 264-1112, Facsimile: (403) 264-1116, Website:
www.action-energy.com; R.D. (Bob) Bowman, President & COO, Action Energy Inc.,
Telephone: (403) 264-1112, Facsimile: (403) 264-1116, Website:
www.action-energy.com

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