Swan Hills Energy Limited Partnership Announces Amendment to Crude Petroleum And Natural Gas Purchase Agreement


    CALGARY, June 27 /CNW/ - Swan Hills Energy Limited Partnership (SWE.UN -
TSX-V) ("Swan Hills") announced today that it has reached an agreement to
amend the terms of the prepaid crude petroleum and natural gas purchase
agreement ("Agreement") dated December 20, 2006 for the sale and delivery of
crude petroleum and natural gas. The original Agreement required Swan Hills to
have acquired assets capable of producing at least 25% of total contract
volume before July 1, 2007 or alternative sources of supply to meet its
delivery obligations. The amendment to the Agreement provides that, in
consideration for the payment by Swan Hills of the sum of approximately
$2,250,000, the liabilities of Swan Hills are reduced by a like amount as a
result of Swan Hills being released from its obligation to deliver crude
petroleum and natural gas during the months of July, August and September
2007. The commencement date for the first delivery of crude petroleum and
natural gas under the amended Agreement is extended from July 1 to October 1,
2007, with all other material clauses remaining substantially the same.
    Additionally, as an update to the April 20, 2007 press release whereby
Swan Hills announced it was reviewing its strategic alternatives to enhance
unitholder value, discussions have been held with several third parties but,
as of the date hereof, there are no potential transactions currently under
consideration by the Board of Directors of Swan Hills Energy Ltd., the general
partner of Swan Hills.

    The TSX Venture Exchange has neither approved nor disapproved the
    information contained herein.

For further information:

For further information: D. Alan Ross, President, Swan Hills Energy
Limited Partnership, Telephone - (403) 294-6889, Fax - (403) 294-0105, Email -
aross@matcocap.com; David M. McGoey, Chief Financial Officer, Swan Hills
Energy Limited Partnership, Telephone - (403) 294-6497, Fax - (403) 294-0105,
Email - dmcgoey@matcocap.com

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