Second Wave is Successful in Bid for Milagro Energy, Extends Offer

Second Wave Petroleum Ltd. announced that all conditions of the offer (the "Offer") dated March 28, 2008 of Second Wave and its wholly-owned subsidiary Second Wave Holdings Ltd. ("Holdings") to acquire all of the issued and outstanding common shares (the "Milagro Shares") of Milagro Energy Inc. ("Milagro") have been satisfied. An aggregate of 115,351,518 Milagro Shares, which represents approximately 68.81% of the issued and outstanding Milagro Shares on a fully-diluted basis, were tendered by the Offer deadline.

Second Wave and Holdings will proceed with the Offer and take-up and pay for the Milagro Shares deposited pursuant to the Offer on the basis of one unit of Second Wave (a "Unit") for every Milagro Share on Thursday, May 8, 2008. Each Unit is comprised of 0.0298 of a Class A Share of Second Wave and 0.0298 of a share purchase warrant to acquire one Class A Share of Second Wave.

Second Wave also announces that the Offer has been extended until 4:30 p.m. (Calgary time) on May 23, 2008. Milagro shareholders are encouraged to tender their Milagro Shares to the extended Offer, as the Milagro Shares will be delisted from trading on the TSX after May 31, 2008. If less than an aggregate of 90% of the Milagro Shares have been deposited to the Offer prior to the extended expiry time, Second Wave may further extend the Offer or implement other procedures to complete its acquisition of all of the Milagro Shares.