FNR ENERGY LIMITED PARTNERSHIP ANNOUNCES INITIAL PUBLIC OFFERING

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

SASKATOON, May 17 /CNW/ - NR Energy Limited Partnership (the "Partnership") is pleased to announce that it has entered into an agency agreement and has filed its final prospectus with the securities regulatory authorities in the provinces of Saskatchewan, British Columbia, Alberta, Manitoba and Ontario, in connection with the initial public offering of up to 2,500,000 limited partnership units of the Partnership at a price of $10 per unit, for gross proceeds of up to $25,000,000. The initial closing is scheduled for early June.

The offering is being made through a syndicate of agents led by MGI Securities Inc. and co-led by Canaccord Genuity Corp. Other members of the syndicate include GMP Securities L.P., Mackie Research Capital Corporation, Raymond James Ltd., Dundee Securities Ltd., Haywood Securities Inc., PI Financial Corp., D&D Securities Inc., Leede Financial Markets Inc., and Union Securities Ltd.

The Partnership's investment objective is to provide limited partners with: (i) income through distributions of distributable cash; (ii) potential capital appreciation in the assets of the Partnership and potential liquidity through the sale or roll-over of assets; and (iii) certain tax assistance in the form of deductions by participating in the development and production of, and to a lesser extent, the exploration for oil and natural gas. The Partnership intends to achieve these objectives by investing the proceeds of the offering in flow-through shares of one or more wholly-owned subsidiary companies formed for the sole purpose of entering into joint venture agreements with oil and gas issuers in order to participate directly, within the joint ventures, in oil and/or natural gas production and/or exploration programs in target areas.

Additional information about the Partnership is available at www.sedar.com.

Forward Looking Information: This release contains forward-looking information within the meaning of applicable Canadian securities legislation, including statements respecting the closing of the Partnership's initial public offering and the use of proceeds from that offering. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those expressed or implied by such forward-looking information. In addition, the forward-looking information contained in this release is based upon what management believes to be reasonable assumptions. Readers are cautioned not to place undue reliance on forward-looking information as it is inherently uncertain and no assurance can be given that the expectations reflected in such information will prove to be correct. The forward-looking information in this release is made as of the date hereof and, except as required under applicable securities legislation, the Partnership assumes
no obligation to update or revise such information to reflect new events or circumstances.

The securities of the Partnership have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This release is issued for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

SOURCE FNR Energy Limited Partnership

For further information:

FNR Energy Inc., as general partner of FNR Energy Limited Partnership
Richard Wingate
President and Chief Executive Officer
306-373-3700 or rwingate@fnrm.ca

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FNR Energy Limited Partnership

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