Result Energy Inc. Expands Land Position and Secures a Second Major Industry Partner in the Horn River Basin Shale Gas Project



    CALGARY, Aug. 14 /CNW/ - Result Energy Inc. ('Result'; TSX-V: RTE) is
pleased to announce that it has entered into a second agreement with a major
oil and gas entity, and has acquired a 10% working interest in 25 additional
sections in the Horn River Basin, northeastern British Columbia. This
increases Result's exposure to 83 gross (43.3 net) sections in this highly
prospective new shale gas play.

    
    -   Result has entered into an agreement dated August 14, 2008 with Seven
        Generations Energy Ltd. ("7G") (the "Agreement"). 7G is a major
        private petroleum company, which was successful in acquiring 25 gross
        contiguous sections of mineral rights at a recent BC land sale. Under
        the terms of its agreement, Result has committed to pay $5 million to
        acquire a 10% working interest in this land block.

    -   Preliminary plans for this project area include the drilling of at
        least 2 (0.2 net to Result) vertical shale gas wells in the Q1-09
        period. Horizontal well legs may also be drilled in the Devonian
        shale this winter, depending on favorable drilling results, weather,
        and equipment availability.

    -   Result will fund the land acquisition through a private placement of
        common shares to 7G at a deemed price of $0.533 per share, which
        represents the trailing weighted average market price of Result's
        common shares for the 20 business days up to and including the date
        of the land sale. Subject to regulatory approval, Result expects to
        issue 9,380,863 common shares from treasury, which will increase
        Result's issued and outstanding shares to 72,868,523.

    -   As a result of this land acquisition, 7G will own approximately 12.9%
        of Result's outstanding common shares, and will thus be considered an
        insider of Result under applicable securities laws. 7G is acquiring
        these shares for investment purposes only, and at this time does not
        have an intention to acquire additional common shares.

    -   The land acquired is in the Dilly Creek area, which is regarded as
        one of the more prospective regions within the Horn River Basin for
        shale gas potential. The joint venture lands are believed to contain
        more than 125 meters of prospective Muskwa-Evie shales and are
        located less than 20 kilometers from the prolific Trail a-26-G well,
        which earlier this year reportedly had gas flow rates of up to
        5 million cubic feet per day after fracture stimulation of the Muskwa
        shale section.

    -   Result's estimated share of the capital costs for the Q1-09 two-well
        program, in addition to seismic related activities, is $3 million.

    -   This transaction, in conjunction with a recently announced separate
        joint venture with a major public energy Trust, gives Result exposure
        to 83 gross sections (43.3 net) in the exciting Horn River Basin.
        Result's land position is concentrated in the east side of the Horn
        River Basin, close to the major points of access and is focused on
        three separate project areas, which are within an 85 km range. This
        will diversify Result's exploration, access, and infrastructure risks
        on this regional play.
    

    Investors are cautioned that this news release contains forward looking
information. Such information is subject to known and unknown risks,
uncertainties and other factors that could influence actual results or events
and cause actual results or events to differ materially from those stated,
anticipated or implied in the forward-looking information. Readers are
cautioned not to place undue reliance on forward-looking information, as no
assurances can be given as to future results, levels of activity or
achievements.

    Result Energy Inc. is a publicly traded Canadian energy company involved
in the exploration and development of oil and gas properties in western
Canada. Result trades on the TSX Venture Exchange under the symbol "RTE".

    Seven Generations Energy Ltd is a privately funded Calgary based company
whose focus is unconventional oil and gas resource development.

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





For further information:

For further information: William Matheson, President & CEO, Result
Energy Inc., Suite 2010, 355, 4th Avenue SW, Calgary, T2P 0J1, (403) 777-0007;
Pat Carlson, President & CEO, Seven Generations Energy Ltd., Suite 200, 706,
7th Avenue SW, Calgary, T2P 0Z1, (403) 718-0700

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