Action Energy Inc. Announces Retention of Restructuring and Financial
Consultants

    
    /THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO
    ANY UNITED STATES NEWS SERVICE. ANY FAILURE TO COMPLY WITH THIS
    RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS./

    TSX-V Symbol "AEC"
    

CALGARY , Sept. 15 /CNW/ - Action Energy Inc. ("Action" or the "Company") announces that it has retained Michael A. Steele ("Steele") of Steele Consulting Partnership and Avonlea Ventures Inc. to work with the Company and its financial advisor, National Bank Financial Inc., to establish a restructuring plan to address debt issues and position the restructured Company to take advantage of further growth opportunities. The Company believes that a proactive approach is in the best interests of its shareholders and other stakeholders in light of continuing low natural gas prices. Steele has an excellent reputation in the business and financial communities as it relates to the successful implementation of such restructuring transactions.

Action also announces that it has engaged Delta-Y Capital Corporation to, on best efforts basis, review and pursue potential financing solutions available to the Company to address both its debt issues and reserve development through ongoing drilling programs.

Action Energy Inc. is a publicly traded Calgary , Alberta based junior oil and natural gas exploration and production company with operations concentrated in core areas in southern Saskatchewan and central and southern Alberta.

    
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    THE TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
    

FORWARD LOOKING STATEMENTS:

This press release may contain forward-looking statements including expectations of future production, funds flow and earnings. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. These risks include, but are not limited to: the risks associated with the oil and natural gas industry (e.g., the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility, ability to access sufficient capital from internal and external sources, operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks. Additional information on these and other factors that could affect Action's operations or financial results are included in Action's reports on file with Canadian securities regulatory authorities.

Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward looking statements. The actual results, performance or achievement of Action could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward looking statements will transpire or occur, or if any of them do so, what benefits that Action will derive therefrom. Action disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

For further information: Roger C.W. Tang, President and Chief Executive Officer, Action Energy Inc., Suite 800, 350 - 7th Avenue S.W., Calgary, Alberta, T2P 3N9, Phone: [phone], Fax: [phone], E-mail: [email protected], Website: www.action-energy.com