(AAV - TSX, AAV - NYSE)

    CALGARY, Aug. 13 /CNW/ - Advantage Oil & Gas Ltd. ("Advantage" or the
"Corporation") announced today that its lenders have completed their review of
the borrowing base subsequent to the previously announced closing of the asset
dispositions. Gross proceeds of $252.6 million were received from the asset
dispositions and Advantage's credit facility was revised from $710 million to
$525 million. Advantage's current debt is approximately $300 million resulting
in an unutilized capacity of approximately $225 million on our credit
facility. As a result, Advantage has significantly improved its financial
flexibility in support of future capital program requirements and general
corporate purposes.
    Advantage's credit facility of $525 million is comprised of a $20 million
revolving operating loan facility and a $505 million extendible revolving
credit facility (the "Credit Facilities"). The Credit Facilities are provided
by a syndicate of financial institutions with various borrowing options
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
Corporation's option, subject to certain basis point or stamping fee
adjustments ranging from 1.5% to 4.0%, depending on the Corporation'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 Corporation 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 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.

    Advisory

    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.

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