Action Energy Inc. (AEC - TSX Venture Exchange) Announces Second Expansion of 2007 Capital Budget and Executive Appointments



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    CALGARY, Oct. 31 /CNW/ - Action Energy Inc. ("Action") is pleased to
announce the following expanded capital budget, production guidance and
executive appointments:

    2007 Capital Budget Expansion

    Following up the acquisition of Rolling Thunder Exploration Ltd. closing
in August 2007 and the recent light oil exploration discoveries at McLean
Creek and Sylvan Lake, Action's Board of Directors has approved an expansion
to its 2007 capital budget by $12.6 million, from $36.0 million to
$48.6 million. Total drilling activity for fiscal 2007 will be 41 (37.3 net)
wells. Action will operate approximately 98% of the wells drilled in 2007. The
expanded capital budget will also fund tie-in and work-overs of existing
producing wells, facility construction, land acquisition and additional
seismic expenditures.
    Although these activities comprise a significant portion of the
incremental capital, they will have only a minor impact on 2007 average
production volumes and annual funds flow from operations because the increase
in expenditures and resultant increase in production occurs late in 2007.
Consequently, the Company's current average production guidance changes
minimally (1,400 increasing to 1,500 boed (60% oil)). The expenditures are
expected to have a positive impact to exit production rates which are
anticipated to increase by approximately 30% to 2,400 boed (57% oil) from
previous exit production guidance of 1,700 boed (65% oil). The Company is
currently producing 2,250 boed (53% oil).
    Run-rate exit funds flow from operations based on December average
forecast production is expected to increase by approximately 37% to $13.8
million up from $10.1 million. The pricing expectations used for these
forecasts are $C 72.00 per barrel for light oil, $C 41.85 per bbl for heavy
oil and $C 7.00 per mcf for natural gas. As a result of the increase in
capital expenditures, it is anticipated that there will be an increase in
reserves and an improvement in operating net-back due to the focus on drilling
for light oil.

    Executive Appointments

    Action is very pleased to announce the appointment of Mr. Kelly D. Kerr
as Vice President Finance and Chief Financial Officer effective November 1,
2007. Most recently, Mr. Kerr was Vice President Finance and Chief Financial
Officer of Innova Exploration Ltd., a TSX listed company producing 4,300 boed
which was recently sold to Crescent Point Energy Trust for $400 million. Prior
to Innova, Mr. Kerr was Vice President Finance and Chief Financial Officer of
TriQuest Energy Corp. a TSX listed company producing 2,000 boed which was sold
in 2004 for $85 million. Mr. Kerr was actively involved in the financing,
financial management and growth of both Innova and TriQuest and Action Energy
looks forward to his involvement and contribution.
    Action is also very pleased to announce the appointment of Mark Lenko as
Vice President Operations. Mr. Lenko is a Professional Engineer with over 20
years of varied industry experience in the Western Canadian Sedimentary Basin.
He has held executive positions in both private and public companies, most
recently as President of Rising Tide Oil and Gas Ltd., a SE Saskatchewan
focused private company which was sold in 2007. After graduating from the
University of Alberta in 1986 with a B.Sc. in Petroleum Engineering, Mr. Lenko
started his career with Dome Petroleum and then continued with Amoco Canada in
a series of progressively more responsible engineering positions. Mr. Lenko
also holds a B.A. and an M.A. both in Economics from the University of
Calgary.
    Action Energy Inc. is a Canadian junior oil and gas company engaged in
the exploration, development and production of oil and natural gas reserves in
the provinces of Alberta and Saskatchewan.

    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.

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

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





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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