Spitfire Energy Company News

Spitfire Energy commenced production on its new pool discovery well drilled in March 2008 in Canada. The well has been placed on production at an initial rate of one million cubic feet of natural gas per day.

Given the Company's production and prospects, Spitfire believes its shares represent a good investment. As a result, the Company took advantage of its new normal course issuer bid to purchase 374,500 common shares at $0.32 per share.

Spitfire Energy produced an average of 289 barrels of oil equivalent per day, achieving revenue of $1.3 million. Most of the production consisted of crude oil from the Company's wells in Saskatchewan.

Consistent with HKN's strategy to invest in energy-based opportunities, during 2007 HKN increased the assets invested in its trading activities and also increased its level of ownership in Spitfire Energy Ltd.

Spitfire Oil announces that it is about to re-commence drilling at its Salmon Gums project in Western Australia.

Spitfire Energy has made a strategic transaction to facilitate the Company's continued business growth by closing the acquisition of crude oil reserves and production located in the Company's existing core operating area in S.W. Saskatchewan.