Anderson Energy Completes Acquisition of Sylvan Lake Assets

Anderson Energy has successfully completed the previously announced acquisition of oil and gas assets in its core area of greater Sylvan Lake for total cash consideration of $116.1 million before expenses and the completion of the final statement of adjustments by the vendor.

The Assets are located in and around the Company's Sylvan Lake Edmonton Sands project area in Central Alberta. First quarter production from the Assets averaged 2,146 barrels of oil equivalent per day ("BOED") and was 75% natural gas. The Assets include 9.6 million barrels of oil equivalent ("MMBOE") of proved plus probable reserves, as estimated by a combination of reports from the vendor's third party engineering firm and the Company's internal qualified reserves evaluator, numerous strategic plant and facility interests and 38,400 gross (25,300 net) acres of undeveloped land. Of particular value to Anderson Energy, 55 gross (32 net) sections of land are prospective for Edmonton Sands drilling, on which the Company has 160 gross (86 net) drilling locations identified. The Acquisition is consistent with Anderson Energy's previously stated strategy of acquiring deeper production and reserves with shallow undrilled potential in the Edmonton Sands.

The Acquisition was financed through the issuance of 25.7 million subscription receipts for common shares at $3.90 per subscription receipt under a bought deal financing and existing credit facilities. The financing closed on August 13, 2007. Funds were released from escrow and the subscription receipts were deemed to have been exchanged and converted to an equivalent number of common shares on August 31, 2007 in conjunction with the closing of the Acquisition. The subscription receipts will be halted from trading on the Toronto Stock Exchange prior to markets opening on September 4, 2007 and will be delisted prior to markets opening on September 5, 2007. The Company now has 87.3 million common shares outstanding.

In conjunction with the Acquisition, the Company has also negotiated an increase in its bank lines from $75 to $105 million subject to completion of customary loan and security documentation.

The Acquisition and related financing will have a meaningful impact on the Company's reserves and production and will substantially increase both its Edmonton Sands and other horizons opportunity base while leaving the Company with sufficient financial flexibility for its planned drilling program.


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