Ausam announces agreement to purchase oil and gas assets



    TSX Venture Exchange -Symbol "AZE"

    CALGARY, Aug. 7 /CNW/ - Ausam Energy Corporation ("Ausam" or the
"Company") announced today that it has, through its wholly-owned subsidiary
Noram Resources, Inc., signed an asset purchase agreement (the "Acquisition
Agreement") with a private company to acquire 20% undivided interest in
certain oil gas properties which include approximately 19,500 gross acres
(13,800 net acres) located in Caddo Parish, Louisiana, Miller County,
Arkansas, and Cass and Marion Counties, Texas.
    The properties to be purchased contain production from the Rodessa,
Petite, Upper Travis Peak and Cotton Valley formations. Two wells have been
fracced in the Cotton Valley formation and are currently being tested. Ausam
believes the acreage is prospective for the Lower Travis Peak, Upper Cotton
Valley, and Cotton Valley Lime/Bossier/Haynesville formations, but there are
no producing wells in these formations to date.
    Mark Avery, President of Ausam, said, "The acquisition complements the
Company's existing exploration portfolio with an acreage position that
contains in excess of 100 possible drilling locations. The expected drilling
program has the potential to add substantively to the Company's value."
    Closing of the purchase is subject to customary terms and conditions,
including, but not limited to, satisfactory due diligence as to title and
environmental matters. Closing is also dependent upon the Company securing the
necessary financing under terms acceptable to the Company's board of
directors. There can be no assurance that such financing can be obtained, or
if obtained, obtained under acceptable terms.

    Cautions Regarding Forward-Looking Statements

    Forward-looking statements (often, but not always, identified by the use
of words such as "expect", "may", "could", "anticipate" or "will" and similar
expressions) may describe expectations, opinions or guidance that are not
statements of fact. Forward-looking statements, including those relating to
the intersection of formations and any related economic potential from the
drilling program, are based upon the opinions, expectations and estimates of
management of Ausam as at the date the statements are made and are subject to
a variety of known and unknown risks and uncertainties and other factors that
could cause actual events or outcomes to differ materially from those
anticipated or implied by such forward-looking statements. Those factors
include, but are not limited to risks, uncertainties and other factors that
are beyond the control of Ausam including the satisfaction of all conditions
precedent with respect to the Acquisition Agreement and receipt of all
required approvals. In light of the risks and uncertainties associated with
forward-looking statements, readers are cautioned not to place undue reliance
upon forward-looking information. Although Ausam believes that the
expectations reflected in the forward-looking statements set out in this press
release are reasonable, it can give no assurance that such expectations will
prove to have been correct. The forward-looking statements of Ausam contained
in this press release, or incorporated herein by reference, are expressly
qualified, in their entirety, by this cautionary statement.

    About Ausam

    Ausam is a public company engaged in the business of oil and gas
exploration and development. Ausam, through its U.S. subsidiary Noram
Resources, Inc, has acquired a diverse portfolio of oil and gas leases and
prospects in Texas, Louisiana, Mississippi, Alabama and Arkansas. Ausam,
through its Australian subsidiary Ausam Resources Pty Ltd., holds interests in
permits in Queensland and Victoria. Ausam's growth strategy includes the
organic development of its current holdings and selective corporate
transactions. The Company trades under the symbol "AZE" on the TSX Venture
Exchange.

    William M. Hitchcock
    Chairman

    The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release. This news release shall not constitute an offer
to sell or the solicitation of an offer to buy securities of Ausam in any
jurisdiction. The securities of Ausam which have been registered under the
Securities Act of 1933, as amended (the "1933 Act"), are offered only pursuant
to the prospectus relating to such offering. The securities of Ausam which
have not been registered under the 1933 Act may not be offered or sold in the
United States absent registration or an applicable exemption therefrom under
the 1933 Act and the applicable state securities laws.

    %SEDAR: 00008979E




For further information:

For further information: Mark G. Avery, President and CEO,
mavery@ausamenergy.com, Tel: (832) 678-2200, Fax: (832) 678-2205; Ralph D.
Davis, Chief Financial Officer, rdavis@ausamenergy.com; Web site:
www.ausamenergy.com

Organization Profile

AUSAM ENERGY CORPORATION

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