Second Wave Petroleum resumes drilling at Beaverhill Lake

Second Wave Petroleum Inc. has entered into a strategic joint venture and farm out arrangement at Judy Creek focused on its Beaverhill Lake light oil play and resumption of production at its Judy Creek Pekisko oil battery and gas plant.

The Beaverhill Lake formation in Judy Creek represents a potential large light oil resource opportunity where off-setting acreage is currently being successfully developed through the application of horizontal drilling and multi-stage acid fracturing completion techniques.

This joint venture represents a significant step forward in the development of the company's Beaverhill Lake light oil resource which the company believes offers meaningful exposure to this potential light oil resource while allowing the company to focus the majority of its capital on the continued development of its Judy Creek Pekisko oil resource play.

On December 10, 2010, the company experienced a fire at its Judy Creek 08-24-063-10W5 gas plant resulting in the plant's gas refrigeration system and the associated building suffering significant damage. As a result of this damage the company shut in approximately 1,650 boe/d of net production until repairs could be made. Upon completing required repairs and receiving all regulatory approvals the company started up the new gas plant on February 8, 2011.  Subsequently the company has been systematically re-activating its oil wells in the area to effectively manage the flow of new volumes to the facility.  A total of 18 horizontal Pekisko wells have been brought on to date with a further four (4.0 net) wells to be placed on production over the next four weeks.

Since re-starting the Judy Creek facility the company has reached total corporate production of 2,650 boe/d (60% liquids). In Judy Creek the company currently has 22 (22.0 net) Pekisko horizontal oil wells drilled, completed and tied in with eight (8.0 net) wells having less than 30 days of production history.

An active drilling program is planned in the first quarter including four vertical Ellerlsie oil wells, one Beaverhill Lake horizontal oil well, one Pekisko oil well. Two Pekisko horizontal wells that were drilled in the fourth quarter of 2010 were successfully completed and tied in prior to the start up of the gas plant. To date three of the Ellerlsie oil wells have been cased and completed successfully with the fourth well currently being drilled. Drilling and completion activities on the remaining wells are scheduled to occur later in the first quarter. The Company will look to provide a further operational update on its Judy Creek Pekisko, Beaverhill Lake and Ellerslie oil plays as additional testing and production history is attained in the first quarter.