Online Energy Inc. Announces Strategic Acquisitions

Online Energy Inc. (the "Company" or "Online") (TSX VENTURE:ONL) is pleased to
announce that it has entered into separate agreements with two arm's length
private companies pursuant to which Online has increased its working interests
in certain operated producing natural gas assets and has added approximately 968
net acres of associated undeveloped land in the Leaman and Niton areas of
west-central Alberta (collectively, the "Acquisitions"). Total consideration
paid for the Acquisitions was $520,000 plus a 5% gross overriding royalty on the
properties acquired in the Niton area. The Acquisitions closed on July 19, 2011.


The attributes of the Acquisitions can be summarized as follows:



--  Current production of 26 boe/d (20% liquids) 
--  7.25 sections of land (42.5% average working interest ("WI")) 
--  968 net acres of undeveloped land 
--  Average 35.8% WI in three Online operated vertical producing Notikewin
    liquids-rich gas wells at Niton 
--  49.2% WI in an Online operated producing Glauconitic liquids-rich gas
    well at Leaman 



The Acquisitions are within Online's greater Paddle River core area in
west-central Alberta. The Niton acquisition increases the Company's average
working interest from 55% to 78% in its primary Notikewin horizontal multi-frac
development project. The Leaman acquisition increases the Company's working
interest from 50% to 99.2% in an operated Glauconitic gas well.


The Company continues to prepare for the drilling of its horizontal multi-frac
wells at Paddle River and Niton, targeting Ostracod oil and Notikewin
liquids-rich gas, respectively. Drilling of the initial wells on each project is
expected to commence upon completion of licensing procedures and the securing of
drilling equipment.


Online is a domestic junior oil and gas exploration and production company with
producing properties and more than 42,000 net acres of undeveloped land in
Alberta. The Company's current production is approximately 370 boe/d (35% oil
and liquids) and it has working capital of approximately $7,700,000. Online
trades on the TSX Venture Exchange under the symbol ONL. Interested parties are
invited to view the Company's corporate presentation which is periodically
updated on its website at www.onln.ca.


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 judgments
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.