Masters Energy Achieves Strong Reserve Growth

Masters Energy Inc. reported the results of its independent reserve evaluation prepared by McDaniel & Associates Consulting Ltd. in accordance with NI 51-101 for the year ended December 31, 2007. The evaluation has been prepared using Alberta's existing royalty program.

Highlights of the reserve evaluation include a net asset value (NAV) per fully diluted common share is $6.65 for proved and probable reserves ("2P") and $8.41 proved, probable and possible reserves ("3P") based on a discount rate of 10%, before income taxes; net present value (NPV) of proved and probable reserves discounted at 10%, before income taxes, increased 60% to $122.8 million compared to December 31, 2006; NPV of proved, probable and possible reserves, discounted at 10% before income taxes, amounted to $154.1 million; proved and probable reserves per 100 common shares issued and outstanding, increased 75% to 53.9 boe; replaced 2007 production by 7.2 times on a proved and probable basis and 9.4 times on a proved, probable and possible basis; and reserve life index is 14.7 years proved and probable and 16.9 years proved, probable and possible based on 2007 production.

Total proved plus probable reserves increased 73% over the previous year from 4,790 mboe to 8,280 mboe as a result of exploration and development activity, property acquisitions and the recognition of reserves associated with the proposed enhanced oil recovery project at Little Bow. McDaniel recognized incremental recovery factors of 13.5% and 18% for 2P and 3P reserves, respectively. As of December 31, 2007, the Company proved and probable reserve mix is comprised of 79% crude oil and natural gas liquids and 21% natural gas.