Second Wave Petroleum Inc. Announces Year End 2008 Financials

Second Wave Petroleum Inc. ("Second Wave" or the "Company") (TSX VENTURE:SCS) is
pleased to announce its financial and operating results for the three months and
year ended December 31, 2008. The Company's audited annual financial statements,
related management's discussion and analysis, and reports on year-end reserves
data and other oil and gas information under National Instrument 51-101 have all
been filed with Canadian securities regulatory authorities. Copies may be
obtained electronically on SEDAR at www.sedar.com and from the Company's website
at www.secondwavepetroleum.com.


2008 Highlights

- Increased 2008 average production by 182% to 819 boe/d, up from 290 boe/d in
2007. Proved plus probable reserve additions replaced production by more than 8
times.


- Increased revenues in 2008 by 269% to $21.62 million.

- Increased 2008 cash flow by 821% to $7.5 million.

- Increased proved plus probable ("P+P") reserves by 122% to 4,365 mboe. Net
present value of the reserves discounted at 10% increased 127% to $73.4 mm.


- Reduced General and Administrative ("G&A") expenses by 59%, on a per unit
basis, during 2008 to $8.84/boe with fourth quarter G&A of $4.97/boe.


- Increased undeveloped acreage by 142% in 2008 to 108,605 net acres. Completed
a 9 square mile 3-D seismic program in Judy Creek to facilitate development and
exploration drilling in 2009 and beyond.


- Successfully drilled our first two horizontal multi-stage frac Mannville oil
wells in Provost.


- Expanded capacity at the 100% working interest oil battery in Provost by 50%
to 20,000 bbl/d of emulsion, tied 12 single well batteries into the oil
gathering system, and constructed a low pressure gas gathering system to
conserve solution gas production.


- Constructed a 100% working interest oil battery in Coronation and tied in 6
single well batteries to reduce trucking, emulsion processing costs and general
operating costs.


Selected Annual Financial Information



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                                 Three months ended              Year ended
                                        December 31,            December 31,
                                                  %                       %
($000s, except share amounts)  2008    2007  Change    2008    2007  Change
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Sales revenue                 4,688   2,494      88  21,618   5,862     269
Royalties                      (560)   (338)     66  (2,801)   (980)    186
Lease operating costs        (2,468) (1,047)    136  (7,443) (1,719)    333
Transportation                 (163)    (50)    226    (384)   (127)    202
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Operating netback             1,497   1,059      41  10,990   3,036     262
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Production volumes
Oil (bbl/d)                     546     285      92     450     145     210
Natural gas liquids (bbl/d)      44      22     100      35      22      59
Natural gas (mcf/d)           2,711     868     212   2,000     739     171
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Combined (6:1)                1,042     451     131     819     290     182
Operating netback per boe     15.61   25.51      39   37.65   28.69      31
Total capital expenditures    7,590  12,707     (40) 48,721  16,281     199
Net loss                     (1,587) (1,640)      3    (246) (3,546)     93
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Funds from operations per share:
  Basic ($)                    0.03   (0.02)    250    0.26   (0.10)    360
  Diluted ($)                  0.03   (0.02)    250    0.25   (0.10)    350
Net loss per share:
  Basic ($)                   (0.05)  (0.13)     62   (0.01)  (0.39)     97
  Diluted ($)                 (0.05)  (0.11)     55   (0.01)  (0.31)    103
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Message to Shareholders

2008 has proved to be a pivotal year, as the Company completed its restructuring
process in January and has since been able to substantially increase production,
cash flows and its undeveloped land base. These critical steps have positioned
the Company for additional growth and provide investors with what management
believes to be significant upside potential. Since the re-capitalization of the
Company, Second Wave's new management team has assembled an oil focused asset
base with a large inventory of both developmental and exploration drilling
opportunities. The Company achieved record production in 2008 with fourth
quarter production averaging 1,042 boe/d, a 131% increase from the fourth
quarter of 2007. Cash flows from operations also increased on a year over year
basis, growing 821% during 2008 to $7.5 million on an annual basis. 


During 2008 the Company focused its efforts on development of the large oil in
place opportunities present within the existing asset base. The company has been
extremely pleased with the results of its efforts to date as demonstrated by the
significant increases in production, cash flows and reserves within our existing
core areas. This success has allowed us to further develop oil exploration
activities on large undeveloped land blocks in both Judy Creek (36,289 net
undeveloped acres) and Milo (16,165 net undeveloped acres), which the Company
believes will provide the basis for additional reserve and production growth in
2009 and beyond. In the current commodity price environment our oil weighted
reserve base and development opportunities will serve us well moving forward.
The Company exited 2008 with total liquids production accounting for over 60% of
total corporate production. Our reserve weighting to liquids has also increased
during the year, accounting for 70% of total reserves at year end compared to
55% in the prior year. 


While the restructuring effort and acquisition of the Milagro assets have
presented the Company with quality development opportunities it has also
presented the Company with several operational challenges in 2008. The assets
previously owned by Second Wave and those acquired from Milagro had been
undercapitalized for a significant period of time and as a result required a
meaningful investment in 2008 to bring them back up to industry standard. While
this has resulted in higher than expected operating costs during 2008, we
believe these essential operations were necessary investments which are now
behind us and will provide the benefit of operational efficiencies and improved
operating costs in future years.


With the current weakness in commodity prices and the uncertainty in the capital
markets Second Wave has taken a more cautious approach to its operations in
2009. Although the short term outlook on commodities is negative, the Company
believes that commodity prices and especially oil prices are positioned to
rebound in the later half of 2009. Reduced industry activity levels in 2009 have
also resulted in a significant amount of downward pricing pressure on the
oilfield service sector. Lower service prices in conjunction with higher cash
flows in the later half of the year have the potential to provide the Company
with substantially stronger drilling economics than those in the current
environment. With half of our $8.0 million budgeted capital program completed in
the first quarter of 2009, Second Wave plans to monitor the current commodity
environment closely throughout the summer months and adjust or resume capital
activities accordingly this fall.


It is important to recognize the contribution to our success that our staff,
directors and field operations personnel have made. Their tireless work in 2008
has helped to bring our successful development concepts to fruition. Our field
personnel have continued in 2008 to perform our operations safely and
efficiently while meeting or exceeding all industry standards. We would also
like to thank former directors Ross Drysdale and David MacDonald for their
contribution in the re-organization and re-capitalization process of Second
Wave. Their previous work and continued support have helped to facilitate the
successful growth experienced in 2008 and years to follow.


The Company has a tremendous amount of drilling opportunities on its existing
land base but believes a conservative approach to capital activity is
appropriate in the current economic environment. The Company is forecasting 2009
annual production in the range of 1,050 to 1,100 boe/d (68% Oil and NGLs)
representing a 28% increase on a year over year basis.


Colin Witwer, President and Chief Executive Officer

READER ADVISORIES

BOE Conversion. The term boe refers to barrel of oil equivalent. Boes may be
misleading, particularly if used in isolation. A boe conversion ratio of six mcf
(six thousand cubic feet) to one bbl (one barrel) is based on an energy
equivalency conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead.


Forward-Looking Statements. This news release contains forward-looking
statements that are expressly qualified, in their entirety, by this caution.
Such statements include all disclosure concerning the plans, intentions or
expectations of the Company or its management in future periods. Although the
Company believes that these forward-looking statements are reasonable, undue
reliance should not be placed on them as they are inherently uncertain, based on
estimates and assumptions, and subject to substantial known and unknown risks
and uncertainties, many of which are beyond the Company's control.
Forward-looking statements are not guarantees of future outcomes. There can be
no assurance that the plans, intentions or expectations contained in the
forward-looking statements or upon which they are based will in fact occur or be
realized, and actual results, performance or achievements may differ from those
expressed or implied in the forward-looking statements. The difference may be
material.


Statements relating to "reserves" are forward-looking statements, as they
involve an implied assessment, based on certain estimates and assumptions, that
the reserves described exist in the quantities predicted or estimated and can
profitably be produced in the future. This news release also includes
forward-looking statements regarding forecasted annual production for 2009 and
expectations concerning product mix, as well as general expectations with
respect to growth in reserves and production, improvements in operational
efficiencies and operating costs and drilling prospects on the Company's
properties.


In making the forward-looking statements contained in this news release, Second
Wave has made various assumptions regarding, among other things: the accuracy of
geological and geophysical data and interpretations of that data; future oil and
natural gas prices; future capital requirements; the accessibility and cost of
capital (including credit); the Company's ability to economically produce oil
and gas from its properties and the timing and cost to do so; and its ability to
obtain qualified staff, equipment and supplies in a timely and cost-efficient
manner.


All forward-looking statements contained in this news release and any subsequent
forward-looking statements, whether written or oral, attributable to the Company
or persons acting on its behalf are qualified in their entirety by these
cautionary statements. Further, the included forward-looking statements are made
as of the date of this news release and Second Wave undertakes no obligation to
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required by law.