Silverwing Energy Inc. announces reserves update for December 31, 2006



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

    CALGARY, March 14 /CNW/ - Silverwing Energy Inc. ("Silverwing") (TSX:SVW)
is pleased to provide an update on its oil and natural gas reserves for the
twelve months ending December 31, 2006.
    The Company's reserves were prepared for the twelve months ended December
31, 2006 by GLJ Petroleum Consultants ("GLJ") in accordance with the rules
provided by National Instrument 51-101.

    
    Highlights:

    -   Total company proved reserves increased 69% from 1,163 mboe at
        December 31, 2005 to 1,960 mboe at December 31, 2006;

    -   Total company proved plus probable reserves increased 94% from
        1,561 mboe at December 31, 2005 to 3,036 mboe at December 31, 2006;

    -   Reserve life index ("RLI") is 11.4 years based on proved plus
        probable reserves, as stated in the GLJ report effective
        December 31, 2006.

    -   Net present value of proved plus probable reserves (using forecast
        pricing and discounted at 10%) before tax at December 31, 2006,
        totalled $45.5 million, an increase of 63% from December 31, 2005
        ($28.0 million)

    -   Net asset value ("NAV") per share is estimated to be $1.18 per basic
        and fully diluted common share as at December 31, 2006. The
        calculation is based on the before tax value of proved plus probable
        reserves, discounted at 10% using GLJ's January 1, 2007 pricing,
        adding the estimated undeveloped land value of $4.5 million
        (independently evaluated by GLJ), including $9.9 million net for
        projects in progress and deducting the 2006 audited year end net debt
        of $19.8 million.
    

    Oil and Gas Reserves

    The following table provides summary information presented in the GLJ
report effective December 31, 2006 and is based on GLJ forecast prices as at
January 1, 2007. Some of the information contained herein summarizes certain
information contained in the GLJ reserves update effective December 31, 2006.
Silverwing's crude oil, natural gas liquids and natural gas volumes provided
herein are estimates only and there is no guarantee that the estimated
reserves will be recovered. The actual crude oil, natural gas liquids and
natural gas volumes eventually recovered may be greater than or less than the
reserves estimates provided herein.

    
                                            Crude Oil             NGL's
                                    -----------------------------------------
                                     WI mbbls Net mbbls   WI mbbls  Net mbbls
                                    -----------------------------------------
    Proved
      Producing                            -        -         41          32
      Non-producing                       28       22         41          31
      Undeveloped                          -        -          5           4
                                     ----------------------------------------
    Total proved                          28       22         87          67
    Probable                              11        9         55          39
                                    -----------------------------------------
    Total proved and probable             39       31        142         106
                                    -----------------------------------------
                                                            Barrels of Oil
                                         Natural Gas          Equivalent
                                    -----------------------------------------
                                     WI mmcf  Net mmcf     WI mboe  Net mboe
                                    -----------------------------------------
    Proved
      Producing                        7,286     6,302      1,256       1082
      Non-producing                    2,446     2,029        476        392
      Undeveloped                      1,210     1,093        207        186
                                    -----------------------------------------
    Total proved                      10,942     9,424      1,939      1,660
    Probable                           5,988     5,135      1,063        904
                                    -----------------------------------------
    Total proved and probable         16,930    14,559      3,002      2,564
                                    -----------------------------------------
    Notes:

    (1) WI means Silverwing's working interest (operating and non-operating)
        share before deduction of royalties and excluding any royalty
        interest of the Company.

    (2) Net reserves means Silverwing's working interest (operated and non-
        operated) share after deduction of royalty's obligations, plus
        Silverwing's royalty interest in reserves.

    (3) A barrel of oil equivalent (boe) is derived by converting natural gas
        to oil in the ratio of six thousand cubic feet of natural gas to one
        barrel of oil equivalent. A boe conversion may be misleading,
        particularly if used in isolation, as it is based on an energy
        equivalency conversion method primarily applicable at the burner tip
        and may not represent a value equivalency at the wellhead.

    (4) May not add due to rounding.
    

    Reserves Values

    The before tax estimated future net revenues associated with Silverwing's
reserves effective December 31, 2006 and based on GLJ's forecast prices are
summarized in the following table:

    
    Forecast Prices - Net Present Value (Before Income Taxes)

                                              Undiscounted    Discounted
    ($M)                                            0%       5%       10%
                                       --------------------------------------
    Proved
    Developed producing                            30,676   26,474    23,376
    Developed non-producing                        10,815    9,369     8,308
    Undeveloped                                     3,777    2,579     1,751
                                       --------------------------------------
    Total proved                                   45,268   38,422    33,435
    Probable                                       22,674   16,216    12,041
                                       --------------------------------------
    Total proved plus probable                     67,942   54,638    45,476
                                       --------------------------------------
    Notes:

    (1) May not add due to rounding.

    GLJ used the following price assumptions in the forecast reserves
    pricing and costs case as released by GLJ effective January 1, 2007:

                                                                      Natural
                                                     Oil Price      Gas Price
                                              --------------------- ---------
                                                  WTI   Edmonton   Westcoast
                                               Cushing      D2S2   Station 2
                                               $US/bbl    $CDN/bbl   $/mmbtu
                                              -------------------------------
    2006 (e)                                     66.22      73.16       6.80
    2007                                         62.00      70.25       7.20
    2008                                         60.00      68.00       7.45
    2009                                         58.00      65.75       7.75
    2010                                         57.00      64.50       7.80
    2011                                         57.00      64.50       7.85
    2012                                         57.50      65.00       8.15
    2013                                         58.50      66.25       8.30
    2014                                         59.75      67.75       8.50
    2015                                         61.00      69.00       8.70
    2016                                         62.25      70.50       8.90
    2017                                         63.50      71.75       9.10
    2018                                      +2.0%/yr    +2.0%/yr  +2.0%/yr

                                                                    Exchange
                                                        Inflation       Rate
                                                         %/year      $US/Cdn
                         ----------------------------------------------------
    2006 (e)                                               2.1          0.88
    2007                                                   2.0          0.87
    2008                                                   2.0          0.87
    2009                                                   2.0          0.87
    2010                                                   2.0          0.87
    2011                                                   2.0          0.87
    2012                                                   2.0          0.87
    2013                                                   2.0          0.87
    2014                                                   2.0          0.87
    2015                                                   2.0          0.87
    2016                                                   2.0          0.87
    2017                                                   2.0          0.87
    2018                                                   2.0          0.87
    

    This news release shall not constitute an offer to sell or the
solicitation of any offer to buy, nor shall there be any sale of these
securities in any jurisdiction in which such offer, solicitation or sale would
be unlawful. The securities offered have not been and will not be registered
under the U.S. Securities Act of 1933, as amended, and may not be offered or
sold in the United States absent registration or applicable exemption from the
registration requirements of the U.S. Securities Act and applicable state
securities laws.

    Certain statements contained in this document are "forward-looking
statements". The projections, estimates and beliefs contained in such
forward-looking statements involve known and unknown risks, uncertainties and
other factors which may cause actual results or events to differ materially
from those anticipated in any forward-looking statements. Silverwing believes
the expectations reflected in those forward-looking statements are reasonable;
however Silverwing cannot provide any assurance that these expectations will
prove to be correct.

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

    %SEDAR: 00023786E




For further information:

For further information: Silverwing Energy Inc., Oleh Wowkodaw,
President and Chief Executive Officer, (403) 538-5597, (403) 263-5549 (FAX),
Email: oleh@silverwingenergy.com; or Silverwing Energy Inc., Terry O'Connor,
Senior Vice President, Business Development, (403) 538-5593, (403) 263-5549
(FAX), Email: toconnor@silverwingenergy.com; or Silverwing Energy Inc., Martin
Rude, Vice President, Finance and Chief Financial Officer, (403) 538-5591,
(403) 263-5549 (FAX), Email: mrude@silverwingenergy.com

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SILVERWING ENERGY INC.

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