Milagro Energy Enters into Credit Facility

Milagro Energy Inc. (TSX:MIG) has entered into a $23,500,000 senior secured bridge facility priced at prime plus 1.75% per annum with Brookfield Bridge Lending Fund Inc. The facility replaces Milagro's existing banking facility and will be used to repay that facility, for general corporate purposes and to assist in funding Milagro's capital expenditure program. The facility matures January 10, 2007, subject to an extension option to April 10, 2007.

Milagro is an exploration and production company engaged in the acquisition, exploration, development and production of oil and natural gas reserves in western Canada.