News Releases

Advantage Announces Renewal of Credit Facility

Jun 19, 2009

    CALGARY, June 19 /CNW/ - Advantage Energy Income Fund ("Advantage" or
"the Fund") (AVN.UN - TSX, AAV - NYSE) announced today that its lenders have
completed their review of its borrowing base and that Advantage has received
an extension of its credit facility (the "Credit Facilities"). The Credit
Facilities total $710 million comprised of a $20 million demand operating loan
facility, a $630 million extendible revolving credit facility and a $60
million liquidity facility. The Credit Facilities are provided by a syndicate
of financial institutions. Various borrowing options are available under the
Credit Facilities, including prime rate based advances, US base rate advances,
US dollar LIBOR advances and bankers' acceptances loans. The interest rates
applicable to the Credit Facilities are based on either prime rate, US base
rate, LIBOR or bankers' acceptance rates at the Fund's option, subject to
certain basis point or stamping fee adjustments ranging from 1.5% to 6.9%,
depending on the Trust's debt to cash flow ratio. The Credit Facilities are
secured by a $1 billion floating charge demand debenture, a general security
agreement and a subordination agreement from the Trust covering all assets and
cash flows. The amounts available to Advantage from time to time under the
Credit Facilities are based upon the borrowing base determined by the lenders
and which is redetermined on a semi-annual basis by those lenders. The
borrowing base constitutes a revolving facility for a 364 day term which is
extendible annually for a further 364 day revolving period, subject to a one
year term maturity as to lenders not agreeing to such annual extension, with
the next annual review anticipated to take place in June 2010. The $60 million
liquidity facility will, subject to renewal, expire on October 31, 2009. The
Credit Facilities contain standard commercial covenants for credit facilities
of this nature. The only financial covenant is a requirement for Advantage to
maintain a minimum cash flow to interest expense ratio of 3.5:1, determined on
a rolling four-quarter basis.


    The information in this press release contains certain forward-looking
statements. These statements relate to future events or our future
performance. All statements other than statements of historical fact may be
forward-looking statements. Forward-looking statements are often, but not
always, identified by the use of words such as "seek", "anticipate", "plan",
"continue", "estimate", "expect", "may", "will", "project", "predict",
"potential", "targeting", "intend", "could", "might", "should", "believe",
"would" and similar expressions. These statements involve substantial known
and unknown risks and uncertainties, certain of which are beyond Advantage's
control, including: the impact of general economic conditions; 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; fluctuations in commodity prices and foreign exchange and interest
rates; stock market volatility and market valuations; 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; changes in income tax laws or changes in tax laws
and incentive programs relating to the oil and gas industry and income trusts;
geological, technical, drilling and processing problems and other difficulties
in producing petroleum reserves; and obtaining required approvals of
regulatory authorities. Advantage's actual results, performance or achievement
could differ materially from those expressed in, or implied by, such
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, what benefits that Advantage will derive from
them. Except as required by law, Advantage undertakes no obligation to
publicly update or revise any forward-looking statements.

    %CIK: 0001259995

For further information:

For further information: Investor Relations, Toll free: 1-866-393-0393,
ADVANTAGE ENERGY INCOME FUND, 700, 400 - 3rd Avenue SW, Calgary, Alberta, T2P
4H2, Phone: (403) 718-8000, Fax: (403) 718-8300, Web Site:, E-mail:

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