/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
CALGARY, June 4 /CNW/ - Action Energy Inc. ("Action") is pleased to
announce that the Board of Directors of the Corporation has approved the
increase of the 2007 Capital Budget from $21 Million to $36 Million.
The increased Capital Budget reflects Action's initiative to accelerate
the exploitation and development activities of the Corporation in Lloydminster
and Galahad areas of Alberta, the Shackleton area of Saskatchewan, and to
execute the high impact Exploration program in the Peace River Arch and Sylvan
Lake areas of Alberta.
The Corporation forecasts this acceleration will have 2007 exit
production between 1700 and 1800 boed with the full year average production
exceeding 1400 boed. The increased Capital Budget will be funded from
operational cash flow, debt and the recently closed equity financing. Action
budgets no additional production contribution from any of its exploration
The Corporation is also pleased to announce the signing of a large
strategic 23.75 section farm-in and 24 month lease agreement with a major oil
and gas company in the Jensen Area of Southern Alberta.
Under the terms of the letters of intent, Action has the right to earn a
100% working interest in all P&NG rights below the base of the Bow Island by
drilling a minimum of two (2) Mississippian test wells prior to August 31,
2007. All production is subject to a 20% lessor royalty.
Action Energy continues to be highly technically driven in our
exploration efforts and with the farm-in lands having detailed seismic
coverage the risk can be significantly reduced on various play trends.
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.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. Not for
distribution to U.S. newswire services or for dissemination in the United
States. Any failure to comply with this restriction may constitute a
violation of U.S. securities laws.
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: