CALGARY, ALBERTA–( EMWNews – March 31, 2008) – Milagro Energy Inc. (TSX:MIG) (“Milagro”) today filed its annual financial statements, the related Management’s Discussion and Analysis and its Annual Information Form (“AIF”) for the year ended December 31, 2007 on the System for Electronic Document Analysis and Retrieval (“SEDAR”). The AIF contains additional details about Milagro’s reserves as required under National Instrument 51-101. Copies of these documents can be found for viewing on the SEDAR website at www.sedar.com.

Milagro also filed the directors’ circular on SEDAR on March 28, 2008 in respect of the previously announced take-over bid by Second Wave Petroleum Ltd.

SELECTED ANNUAL INFORMATION

                                                 2007       2006       2005
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FINANCIAL (000's except per share data)
Oil and gas revenue                             7,191      9,507      8,361
Funds flow from operations, before             
 changes in non-cash working capital           (1,331)      (326)     2,670
 Per share - basic and diluted                  (0.01)     (0.01)      0.05
Funds flow from operations, after changes      
 in non-cash working capital (1)               (4,227)    (2,146)     7,191
 Per share - basic and diluted                  (0.03)     (0.04)      0.14
Net loss                                       (4,570)    (3,397)      (103)
 Per share - basic and diluted                  (0.04)     (0.06)     (0.00)
Capital expenditures (net), including cash      6,487      8,795     16,577
 outlays on corporate acquisitions
Working capital deficiency                     19,487     24,977     12,901
Shareholders' equity                           38,314     28,975     30,075
Total assets                                   66,645     64,387     49,375

OPERATING
Average daily production
 Oil and NGL's (bbls/day)                         214        300        340
 Natural gas (mcf/day)                            956      1,365        834
 Equivalent barrels (boe/day)                     373        527        479

Wells drilled
 Gross                                              8          2          9
 Net                                              3.5        1.3        9.0

Undeveloped land
 Net acres                                     59,100     62,290     49,296

Common Share Information
Shares outstanding (000s)
Weighted average during the period            127,288     58,381     50,530
 Period end - basic                           167,628     59,451     53,531
 Period end - diluted                         230,587     61,481     54,863
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(1)
Funds flow from operations before
 changes in non-cash working capital           (1,331)      (326)     2,670
Net changes in non-cash working capital        
 and abandonment costs                         (2,895)    (1,820)     4,521
Funds flow from operations after
 changes in non-cash working capital            (4,226)    (2,146)     7,191
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Milagro is an exploration and production company engaged in the acquisition, exploration, development and production of oil and natural gas reserves in western Canada.