Kereco Energy Announces Power Outage at Sturgeon Lake

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

    (TSX: KCO)

    CALGARY, June 22 /CNW/ - Kereco Energy Ltd. ("Kereco") announces that in
the early morning of June 21, 2007, lightning struck an electrical transformer
at a 3rd party power supply substation which supplies all the power needs of
Kereco's Sturgeon Lake facility and all of the wells in the associated field.
This has caused a temporary shut in of Kereco's approximately 3,900 boe/day of
production of light crude oil, NGL's and natural gas from the area. Based on
the 3rd party's current plan to remedy the situation, we expect the majority
of our power to be restored in the next few days and will stage our production
back up once it is restored. However, as we do not expect to regain full power
in the near term under their current plan, we are advancing alternatives that
will enable us to achieve near full production until full power can be
restored.

    In conformity with Canadian Securities Administrators National Instrument
51-101, natural gas volumes have been converted to equivalent barrels of oil
("boe") using a conversion ratio of six thousand cubic feet ("mcf") to one
boe. This ratio is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value equivalency at the
wellhead. Readers are cautioned that boes may be misleading, particularly if
used in isolation.

    %SEDAR: 00021661E

For further information:

For further information: Kereco Energy Ltd., Grant Fagerheim, President
and Chief Executive Officer, Phone (403) 290-3401 or Stephen C. Nikiforuk,
Vice-President, Finance and Chief Financial Officer, Telephone: (403)
290-3404