CALGARY, June 27 /CNW/ - Advantage Energy Income Fund ("Advantage" or the
"Fund") is pleased to announce that its Board of Directors has approved an
increase to the 2008 capital budget of $55 million. The 2008 capital
expenditure budget is now set at $200 million and is expected to be fully
funded out of cash flow given the current commodity price environment. The
increased capital spending will be primarily directed towards further drilling
in our Montney natural gas resource play at Glacier in Northwest Alberta with
the balance directed towards additional opportunities that have resulted from
increased commodity prices.

    Additional Glacier Montney Natural Gas Resource Drilling

    During the first quarter of 2008, Advantage drilled 5 vertical
delineation wells in the Glacier property which helped confirm geological
formations, reservoir productivity and pool continuity. Additional activity
will be pursued during the balance of 2008 to further define longer term
development plans. The Glacier property is accessible through most of the year
and rigs have been secured to drill the additional wells. Approximately $39
million will be spent on the next phase of development at Glacier where the
Fund plans to drill 5 gross horizontal wells, 5 gross vertical delineation
wells and initiate infrastructure expansion.

    Significant Upside Potential

    Glacier possesses significant upside potential with our 83 section land
block at an average 93% working interest. The property is positioned directly
adjacent to the highly successful EnCana Swan pool where up to 8 wells per
section are planned. We believe that the timing of commercial development in
the Montney formation is ideal due to higher natural gas pricing and strong
economics resulting from technological advancements in horizontal drilling and
multiple-frac completions.

    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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