Flagship announces closing of property sale



    CALGARY, Sept. 13 /CNW/ - Flagship Energy Inc. ("Flagship" or the
"Company") (TSXV - FG.A and FG.B) is pleased to announce that it has closed
its previously announced disposition of certain of its petroleum and natural
gas properties in Southeast Saskatchewan for cash consideration of
$25.1 million, including closing adjustments. The average production from
these properties for the second quarter 2007 was 478 BOE/d, with the
disposition including approximately 16,000 acres of undeveloped land. The
proceeds will be used to repay a portion of the Company's bank debt.

    Flagship is an emerging oil and gas company focused on the acquisition,
exploration, exploitation and development of oil and natural gas in Western
Canada. Flagship's business plan is to grow reserves and production to
increase shareholder value through a focused and balanced exploration program,
strategic acquisitions and value-added exploitation.

    NOTE: Natural gas and liquids reserves and volumes are converted to a
common unit of measure on a basis of six thousand cubic feet ("Mcf") of gas to
one barrel (bbl) of oil. Disclosure provided herein in respect of barrels of
oil equivalent ("BOE") 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.

    ADVISORY: Certain information regarding Flagship Energy Inc. in this news
release including management's assessment of future plans and operations,
reserve and production estimates, drilling inventory and wells to be drilled,
timing of drilling and tie in of wells, productive capacity of new wells,
capital expenditures and timing thereof, may constitute forward-looking
statements under applicable securities laws and necessarily involve risks
including, without limitation, risks associated with oil and gas exploration,
development, exploitation, production, marketing and transportation, loss of
markets, volatility of commodity prices, currency fluctuations, imprecision of
reserve estimates, environmental risks, competition from other producers,
inability to retain drilling rigs and other services, incorrect assessment of
the value of acquisitions, failure to realize the anticipated benefits of
acquisitions, delays resulting from or inability to obtain required regulatory
approvals and ability to access sufficient capital from internal and external
sources. As a consequence, actual results may differ materially from those
anticipated in the forward-looking statements. Readers are cautioned that the
foregoing list of factors is not exhaustive. Additional information on these
and other factors that could affect Flagship's operations and financial
results are included in reports on file with Canadian securities regulatory
authorities and may be accessed through the SEDAR website (www.sedar.com), or
Flagship's website (www.flagshipenergy.ca). Furthermore, the forward looking
statements contained in this news release are made as at the date of this news
release and Flagship does not undertake any obligation to update publicly or
to revise any of the included forward looking statements, whether as a result
of new information, future events or otherwise, except as may be required by
applicable securities laws.

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

    %SEDAR: 00003847E




For further information:

For further information: Glenn R. Carley, Executive Chairman, (403)
513-8300, gcarley@flagshipenergy.ca; Bradley Maynes, President and Chief
Operating Officer, (403) 513-8301, bmaynes@flagshipenergy.ca; Stuart Jaggard,
Vice President Finance and Chief Financial Officer, (403) 513-8302,
sjaggard@flagshipenergy.ca

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FLAGSHIP ENERGY INC.

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