(TSX: AVN.UN, NYSE: AAV)

    CALGARY, Dec. 14 /CNW/ - Advantage Energy Income Fund ("Advantage" or the
"Fund") is pleased to announce that the Board of Directors of Advantage has
approved a 2008 capital budget that will result in increased annual production
in 2008 over 2007 levels. Advantage plans to incur capital expenditures
between $130 and $145 million in 2008 with production expected to average
approximately 32,000 to 34,000 barrels of oil equivalent per day, weighted 62%
to natural gas. Approximately 55% of our capital spending will be directed to
natural gas and 45% toward light oil projects resulting in 143 gross (88 net)
wells. Operating costs are estimated at $12.50/boe to $13.30/boe and royalty
rates are estimated to be 17% to 19%.
    Capital expenditures in 2008 will continue to focus on key properties
where our drilling programs have resulted in highly efficient production and
reserves additions. We will continue to focus on gas properties such as Martin
Creek in Northeast British Columbia and Nevis (Horseshoe Canyon CBM),
Willesden Green, Northville and Little Bow in Alberta. Light oil activities
will continue at Nevis (Wabamun), Chip Lake, Sunset, Westerose and Southeast
Saskatchewan. In addition, Advantage will spend approximately $10 million to
drill 5 vertical gross (3.8 net) wells to further delineate our Montney
formation natural gas resource play at Glacier in Northwest Alberta where the
Fund has potential to add significant reserves and production. This property
is comprised of 85 sections of contiguous, high working interest operated
lands. Recent horizontal wells in the immediately adjacent Swan Pool have been
brought on-stream at initial rates of up to 10 million cubic feet per day with
reserves in excess of 5 billion cubic feet per well.
    As a result of the recent strength of the Canadian dollar combined with
continuing weakness in natural gas prices, our monthly distribution level will
be adjusted from the current $0.15 per unit to $0.12 per unit beginning with
the December 2007 distribution. Based on the current commodity price outlook,
cash flow from operations is expected to be sufficient to fund the 2008
capital budget and the $0.12 per unit monthly distribution net of the
distribution reinvestment plan. The move to a sustainable distribution level
combined with industry leading tax pools will allow Advantage to maintain
financial strength for pursuing additional acquisition opportunities and allow
sufficient flexibility to react to commodity price and market conditions.
    The revised monthly distribution level of $0.12 per unit represents an
annualized yield of 14.0% based on the December 14, 2007 closing price of
$10.25 per unit. The distribution will be payable on January 15, 2008 to
Unitholders of record at the close of business on December 31, 2007. The
ex-distribution date is December 27, 2007. The cash distribution is based on
approximately 138.2 million Units outstanding.
    The CDN$0.12 per Unit is equivalent to approximately US$0.12 per Unit if
converted using a Canadian/US dollar exchange rate of 0.98. The US dollar
equivalent distribution will be based on the actual Canadian/US exchange rate
applied on the payment date and will be net of any Canadian withholding taxes
that may apply.

    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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