Flagship Energy Inc. announces extended credit facility renewal

    CALGARY, April 23 /CNW/ - Flagship Energy Inc. ("Flagship" or the
"Company") announced that the Company's existing credit facility with ATB
Financial has been renegotiated. The existing revolving operating loan
facility was for $55 million, bearing interest at the bank's prime lending
rate, with a review to be performed by no later than April 30, 2007. The new
terms provide for a $50 million credit facility on the same interest rate
terms, with a loan review date extended to no later than July 31, 2007. Based
on Flagship's December 31, 2006 reserve evaluation, the Company anticipates
that the loan facility may be substantially reduced from the current $50
million at the time of the next review.

    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.

    ADVISORY: Certain information regarding Flagship Energy Inc. in this news
release including management's assessment of future plans and credit facility
availability and timing thereof, may constitute forward-looking statements
under applicable securities laws and necessarily involve risks. 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: see www.flagshipenergy.ca or contact: 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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