Second Wave Petroleum Board Approves 2008 Budget

Second Wave Petroleum has received Board approval for its 2008 budget containing a $9.8 million capital program resulting in 14.0 gross (10.8 net) wells being drilled in 2008. Second Wave's drilling program is heavily weighted to oil prospects with 10.0 gross (8.6 net) wells targeting oil bearing formations. Based on this drilling program, Second Wave would expect to grow its current production base of approximately 500 boe/d to an exit rate between 725 and 775 boe/d before factoring in the completion of the Transaction with Milagro. Upon closing of the Transaction, Second Wave will provide additional guidance for 2008.