Action Energy Inc. began operations in November 2006 with a suite of operational strengths: production of 700 boe per day, five producing properties and eight exploration prospect areas.

Less than one month after going public, Action Energy added three significant exploration areas through an extensive farm-in agreement.

Action's asset base includes a mix of light oil, conventional heavy oil and natural gas-producing properties in west central Alberta, Peace River Arch, east central Alberta and southwest and southeast Saskatchewan. The properties offer extensive opportunities to add reserves and production at low cost and low risk, with more many years of potential exploitation-type drilling locations identified to date.

Going forward, Action intends to grow through the drillbit. Its assets include a number of high-impact, high-potential-reward prospects, and land totalling 212,000 net acres.

For 2005, Action has made conservative plans to spend $20.6 million to pursue a spectrum of exploration and exploitation opportunities. The Company will drill a total of 8 (7.5 net) exploration wells (4 Alberta, 4 Saskatchewan) and 9 (6.3 net) exploitation wells (9 Alberta). The Company expects to have average production of 1,700 boed (50% natural gas) with an exit production volume of 1,800 boed (50% natural gas).