Second Wave Petroleum Announces Conversion of Class B Shares and Closing of Extension of Offer for Shares of Milagro

Second Wave Petroleum Ltd. (TSX VENTURE:SCS.A) (TSX VENTURE:SCS.B) ("Second
Wave" or the "Company") has given notice that it is exercising its right to
convert all Class B Shares into Class A Shares, effective as of May 26, 2008.
Pursuant to its Articles, the Corporation will issue ten (10) Class A Shares for
each Class B Share issued and outstanding. From and after May 26, 2008, the
holders of Class B Shares shall be deemed to be holders of Class A Shares and
shall not be entitled to exercise any of the rights of holders of Class B Shares
other than the right to receive a certificate representing Class A Shares
issuable upon conversion. Such certificates for Class A Shares may be received
upon presentation and surrender of certificates for Class B Shares at the
offices of the transfer agent of the Corporation, Olympia Trust Company, 2300,
125 - 9th Ave. S.E., Calgary, Alberta T2G 0P6. Second Wave currently has 935,616
Class B Shares outstanding. Upon conversion to Class A Shares, an additional
9,356,160 Class A Shares will be issued, resulting in a total of 308,335,196
Class A Shares outstanding. The Class B Shares will cease trading on Friday, May
23, 2008 at the close of market.


The Company announces that it plans to take-up and pay on May 27, 2008, for
common shares of Milagro Energy Inc. ("Milagro") tendered to the extension of
the Company's offer to the shareholders of Milagro who did not tender by the
previous deadline of May 5, 2008. As previously announced, the Company, through
its wholly-owned subsidiary Second Wave Holdings Ltd., acquired 68.81% of the
issued and outstanding common shares of Milagro. The extension terminates at
4:30 p.m. on Friday, May 23, 2008 and shareholders of Milagro are encouraged to
tender their shares to the extended offer, as the common shares of Milagro will
be delisted from trading on the TSX after May 31, 2008. The Company also
announces that as part of the closing of the transaction to acquire Milagro, it
issued 260,714 Class A Shares at a deemed price of $0.28 per share to two senior
officers of Milagro as part of their severance packages. The shares issued had a
hold period of four months from the date of issue.


About Second Wave Petroleum

Second Wave Petroleum is a publicly traded, newly recapitalized junior oil and
gas company focused on exploration and development of oil and natural gas in
Alberta and south eastern Saskatchewan. Second Wave remains focused on organic
growth through the drill bit on its existing acreage while continuing a process
of adding accretive acquisitions in 2008.


READER ADVISORY

This news release may contain certain forward-looking statements, including
management's assessment of future plans and operations, and capital expenditures
and the timing thereof, that involve substantial known and unknown risks and
uncertainties, certain of which are beyond the Company's control. Such risks and
uncertainties include, without limitation, risks associated with oil and gas
exploration, development, exploitation, production, marketing and
transportation, loss of markets, volatility of commodity prices, currency
fluctuations, imprecision of reserve estimates, environmental risks, competition
from other producers, inability to retain drilling rigs and other services,
delays resulting from or inability to obtain required regulatory approvals and
ability to access sufficient capital from internal and external sources, the
impact of general economic conditions in Canada, the United States and overseas,
industry conditions, changes in laws and regulations (including the adoption of
new environmental laws and regulations) and changes in how they are interpreted
and enforced, increased competition, the lack of availability of qualified
personnel or management, fluctuations in foreign exchange or interest rates,
stock market volatility and market valuations of companies with respect to
announced transactions and the final valuations thereof, and obtaining required
approvals of regulatory authorities. The Company's actual results, performance
or achievements could differ materially from those expressed in, or implied by,
these forward-looking statements and, accordingly, no assurances can be given
that any of the events anticipated by the forward-looking statements will
transpire or occur, or if any of them do so, what benefits, including the amount
of proceeds, that the Company will derive therefrom. Readers are cautioned that
the foregoing list of factors is not exhaustive. All subsequent forward-looking
statements, whether written or oral, attributable to the Company or persons
acting on its behalf are expressly qualified in their entirety by these
cautionary statements. Furthermore, the forward-looking statements contained in
this news release are made as at the date of this news release and the Company
does not undertake any obligation to update publicly or to revise any of the
included forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required by applicable securities
laws.


The term BOE or BOEs may be misleading, particularly if used in isolation. A BOE
(barrel of oil equivalent) conversion rate of 6 Mcf per one (1) BOE is based on
an energy equivalency conversion method primarily applicable at the burner tip
and does not represent a value equivalency at the wellhead.


298,979,036 Class A Shares

935,616 Class B Shares