Online Energy Inc. Announces First Quarter 2011 Financial Results

Online Energy Inc. (the "Company") (TSX VENTURE:ONL) announces the filing of its
unaudited interim financial statements and related MD&A for the three months
ended March 31, 2011 (collectively, the "Financial Statements"). Selected
financial and operational information is outlined below and should be read in
conjunction with the Financial Statements. The Financial Statements are
available on the SEDAR website at  www.sedar.com and on the Company's website at
www.onln.ca.


Highlights 

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Three months ended March 31                    2011                    2010
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Financial ($) 
Petroleum and natural gas sales             712,521                       - 
Net loss                                   (979,910)                    208 
 Per share - basic and diluted                (0.04)                      - 
Cash used in operating activities          (341,576)                    188 
Capital expenditures                      7,105,705                       - 
Working capital                           6,573,001                    (905)
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- Closed its Qualifying Transaction (as defined in the rules of the TSX Venture
Exchange) with a private Alberta company on January 26, 2011. The assets
acquired by the Company as a result of completing the Qualifying Transaction
included 24,800 acres of undeveloped land, approximately 300 boe/d of oil,
natural gas and NGL production located in the Greater Paddle River and Niton
areas of west-central Alberta (the "Assets") and cash in the amount of
approximately $6 million.


- On February 28, 2011, the TSX Venture Exchange issued a final bulletin in
connection with the completion of the name change of the Company from "Jomar
Capital Corp." to "Online Energy Inc." and the consolidation of the common
shares of the Company on the basis of one post-consolidation share for every six
pre-consolidation common shares. These changes became effective on March 1,
2011.


- Commissioned McDaniel & Associates Consultants Ltd. to prepare a report dated
March 29, 2011, and effective December 31, 2010, evaluating the crude oil,
natural gas liquids and natural gas reserves attributable to the Assets acquired
pursuant to the Qualifying Transaction (the "Report"). Based on the Report, the
total proven plus probable reserves were 985,100 boe with a net present value
before tax of $8,547,500 using a 10% annual discount rate. The Report was
prepared in accordance with National Instrument 51-101 - Standards of Disclosure
for Oil and Gas Activities.


- Drilled one well during the first quarter of 2011 - the Online 103 Charlie
11-1-89-5W6M well (100% working interest). The Company tested this high impact
oil prospect which was found to be non-commercial. The well was cased and
completed as a gas well in a secondary target horizon. The Company currently has
no further plans for its exploration lands in this area and consequently has
taken an impairment charge in the amount of $1,121,013.


- Exited Q1 - 2011 with $6.6 million of working capital and no debt.

Second Quarter Activities and Outlook

- Re-activated a Nordegg oil well (100% working interest) in the Paddle River
area of central Alberta. This well went on-stream on May 21 and due to common
start-up issues, is producing intermittently at a flush rate of approximately
100 boe/d. It is anticipated that, in the coming weeks, this well will approach
a stabilized rate of approximately 20 - 30 boe/d. This is the first of a series
of re-activations, re-entries and re-completions that the Company plans to
execute to supplement its current production base and reserves.


- Current sustainable production is estimated to be approximately 320 boe/d (35%
oil and NGLs), assuming that the recently completed Nordegg re-activation
stabilizes as anticipated.


- Closed a bought deal equity financing on May 5, 2011 with a syndicate of
underwriters pursuant to which the Company issued an aggregate of 8,000,000
common shares for gross proceeds of $4,245,700, consisting of 4,490,000 common
shares at a price of $0.50 per share and 3,510,000 common shares issued on a
"flow-through" basis at a price of $0.57 per share (the "Offering"). The Company
currently has 41,309,890 common shares outstanding.


- Increased the 2011 capital budget to $17,500,000 (including $5.6 million for
the property acquisition that closed on January 26, 2011), which will be funded
from existing working capital and the net proceeds from the Offering. The
majority of these funds will be directed towards ongoing activities in the
greater Paddle River area.


- Made significant progress assembling a solid platform for growth focused in
the greater Paddle River area. The Company is focused on oil exploration and
development projects in the Viking, Ostracod and Nordegg formations and
liquids-rich gas opportunities in the Notikewin and Nordegg formations. The
Company controls approximately 28,400 net acres of undeveloped land in this area
and continues to accumulate assets through Crown land sales and third-party
acquisitions.


- The Company is pleased to welcome John Wittnebel, P. Geol. He joined the team
as Exploration Manager on May 16, 2011. John has over 30 years of experience and
was most recently V.P. Exploration with Result Energy Inc. from 2005 -2009.


Cautionary Statements:

This press release contains certain forward-looking statements (forecasts) under
applicable securities laws relating to future events or future performance.
Forward-looking statements are necessarily based upon assumptions and judgements
with respect to the future including, but not limited to, the outlook for
commodity markets and capital markets, the performance of producing wells and
reservoirs, well development and operating performance, general economic and
business conditions, weather, the regulatory and legal environment and other
risks associated with oil and gas operations. In some cases, forward-looking
statements can be identified by terminology such as "may", "will", "should",
"expect", "projects", "plans", "anticipates" and similar expressions. These
statements represent management's expectations or beliefs concerning, among
other things, future operating results and various components thereof affecting
the economic performance of Online. Undue reliance should not be placed on these
forward-looking statements which are based upon management's assumptions and are
subject to known and unknown risks and uncertainties, including the business
risks discussed above, which may cause actual performance and financial results
in future periods to differ materially from any projections of future
performance or results expressed or implied by such forward-looking statements.
Accordingly, readers are cautioned that events or circumstances could cause
results to differ materially from those predicted.


In the interest of providing Online shareholders and potential investors with
information regarding the Company, including management's assessment of Online's
future plans and operation, certain statements throughout this press release
constitute forward looking statements. All forward-looking statements are based
on the Company's beliefs and assumptions based on information available at the
time the assumption was made. The use of any of the words "anticipate",
"continue", "estimate", "expect", "may", "will", "project", "should", "believe"
and similar expressions are intended to identify forward looking statements. By
its nature, such forward-looking information involves known and unknown risks,
uncertainties and other factors that may cause actual results or events to
differ materially from those anticipated in such forward looking statements.
Online believes the expectations reflected in those forward looking statements
are reasonable but no assurance can be given that these expectations will prove
to be correct and such forward looking statements contained throughout this
press release should not be unduly relied upon. These statements speak only as
of the date specified in the statements.


In particular, this press release may contain forward looking statements
pertaining to the following:


- the performance characteristics of the Company's oil and natural gas properties;

- oil and natural gas production levels;

- capital expenditure programs;

- the quantity of the Company's oil and natural gas reserves and anticipated
future cash flows from such reserves;


- projections of commodity prices and costs;

- supply and demand for oil and natural gas;

- expectations regarding the ability to raise capital and to continually add to
reserves through acquisitions and development; and


- treatment under governmental regulatory regimes.

The material assumptions in making these forward-looking statements include
certain assumptions disclosed in the Company's most recent management's
discussion and analysis included in the material available on this press
release.


The Company's actual results could differ materially from those anticipated in
the forward looking statements contained throughout this press release as a
result of the material risk factors set forth below, and elsewhere in this press
release:


- volatility in market prices for oil and natural gas;

- liabilities inherent in oil and natural gas operations;

- uncertainties associated with estimating oil and natural gas reserves;

- competition for, among other things, capital, acquisitions of reserves,
undeveloped lands and skilled personnel;


- incorrect assessments of the value of acquisitions and exploration and
development programs;


- geological, technical, drilling and processing problems;

- fluctuations in foreign exchange or interest rates and stock market volatility;

- failure to realize the anticipated benefits of acquisitions;

- general business and market conditions; and

- changes in income tax laws or changes in tax laws and incentive programs
relating to the oil and gas industry.


These factors should not be construed as exhaustive. Unless required by law,
Online does not undertake any obligation to publicly update or revise any
forward looking statements, whether as a result of new information, future
events or otherwise.


Barrels of oil equivalent (boe) may be misleading, particularly if used in
isolation. A boe conversion ratio of six thousand cubic feet (mcf) of natural
gas to one barrel (bbl) of oil is based on an energy conversion method primarily
applicable at the burner tip and is not intended to represent a value
equivalency at the wellhead. All boe conversions in this press release are
derived by converting natural gas to oil in the ratio of six thousand cubic feet
of natural gas to one barrel of oil. Certain financial amounts are presented on
a per boe basis, such measurements may not be consistent with those used by
other companies.


Estimated values contained in this press release do not represent fair market value.