Second Wave Petroleum Inc. ("Second Wave" or the "Company") (TSX VENTURE:SCS) is
pleased to announce its operating and financial results for the three and nine
months ended September 30, 2008, the purchase of a CO2 Processing Plant in the
Battle Creek area of Saskatchewan and the successful drilling of its first two
horizontal Mannville oil wells in Provost.


Highlights:

- Production increased to 933 boe/d, up 85% from the first quarter of 2008 (41%
on a fully diluted share basis). Production is currently 1,200 boe/d (60% oil
weighting) and the Company remains on track to meet its exit target of 1,250
boe/d.


- Funds from operations increased to $2,250,000, up 39% from the first quarter
of 2008.


- Successfully drilled its first horizontal Mannville oil well (100 % W.I.) in
Provost in the third quarter, with a second 100% horizontal drilled early in the
fourth quarter. Since being brought on production average flow rates from each
well have exceeded 75 boe/d.


- Expanded the 100% owned and operated Provost oil battery and gas gathering
system to facilitate production from the Company's upcoming horizontal drilling
program. Based on geological mapping and 3-D seismic this program could result
in fourteen (14 net) additional wells being drilled. Production from Provost has
increased from 226 boe/d in the first quarter to 620 boe/d in the third quarter,
and is anticipated to exit 2008 at a rate of 700 boe/d.


- Signed a letter of intent to purchase the Battle Creek CO2 Processing Plant
from a third party, with plans to initiate its Madison oil CO2 flood project in
2009. In Battle Creek, the Company holds a 100% working interest in both a
Madison heavy oil pool estimated to contain 18 mmbbl of original oil in place
and a Duperow gas reservoir internally estimated to contain 10 bcf of original
gas in place with an 85% CO2 concentration. Based on simulation data Second Wave
believes that a successful CO2 flood in the Madison pool could yield 1.26 mmbbl
of recoverable resources net to the Company.


- Acquired an additional 15,680 of net undeveloped acres in its core areas of
Tableland, Saskatchewan (11,520 acres) and Judy Creek, Alberta (3,840 acres).
The Company has since added an additional 4,160 acres of undeveloped land in
Tableland to bring its total net undeveloped acreage to 100,100 acres with
44,265 net undeveloped acres being in Saskatchewan.


The original oil in place estimate of 18 mmbbl for the Madison heavy oil pool is
based on a third party engineering report having an effective date of November
1, 2007. Of this amount, approximately 11% has been classified as recoverable
reserves under primary recovery. The original gas in place estimate of 10 bcf
for the Duperow gas reservoir is based on the Company's current internal
assessment. Estimated results of a successful CO2 flood in the Madison pool are
also internally generated. There is no certainty that it will be commercially
viable to produce any portion of the resources not currently classified as
recoverable reserves. See "Disclosure Concerning Resources" below.


The following table summarizes certain key financial results for the third
quarter and prior interim periods as indicated. Complete financial statements
and management's discussion and analysis for the interim period ended September
30, 2008 have been filed on SEDAR (www.sedar.com) and are posted on the
Company's website at www.secondwavepetroleum.com.




Quarterly Financial Summary

                                  2008                     2007
                         --------------------  ----------------------------
($000's except per boe 
 and per share amounts)    Q3      Q2     Q1       Q4      Q3      Q2    Q1

Average production 
 (boe/d)                  933     783    504      451     244     243   220

Petroleum and natural
 gas sales              7,197   6,326  3,407    2,494   1,120   1,203 1,045
Royalties                (905)   (803)  (466)    (338)   (197)   (196) (165)
Operating expenses     (2,588) (1,558)  (829)  (1,047)   (275)   (153) (273)

Operating netback
 (per boe)              42.10   54.58  44.87    25.51   28.86   37.40 29.72

Funds from operations   2,250   2,596  1,617     (344)   (446)     18  (273)
  Per share - basic      0.07    0.09   0.07    (0.03)  (0.06)      - (0.05)
  Per share - diluted    0.07    0.09   0.07    (0.03)  (0.06)      - (0.05)

Net income (loss)         665     296    380   (1,640) (1,102) (1,200)  395
  Per share - basic      0.02    0.01   0.01    (0.13)  (0.10)  (0.19) 0.07
  Per share - diluted    0.02    0.01   0.01    (0.13)  (0.10)  (0.19) 0.05

Capital expenditures    9,169   4,070  1,627   14,303   1,034      52   396

Fully diluted shares
 outstanding (000's)   32,450  30,105 24,716   11,381   8,697   7,020 7,576



Third Quarter Summary

The three month period ended September 30, 2008 was the most active period in
the Company's history with four (4 net) drills, thirteen (13 net) re-completions
and sixteen (16 net) work overs. The Company continues to focus on oil plays and
to that end all of the capital projects in the third quarter have been on oil
projects within the Company's existing core areas. Second Wave successfully
drilled three (3 net) oil wells in the third quarter with one (1 net) well being
dry and abandoned for a 75% success rate. The thirteen (13 net) re-completions
targeted oil bearing formations in Provost, and were 100% successful with ten of
these re-completions delineating the Company's Mannville oil play. For the nine
months ended September 30, 2008, Second Wave has drilled eight (7.65 net) gross
wells, which included five (5 net) oil wells and three (2.65 net) dry and
abandoned wells for a 63% success rate.


During the third quarter the Company completed a substantial number of
operational projects to upgrade and maintain recently purchased assets. Although
the Company's asset acquisition in the fourth quarter of 2007 and the corporate
acquisition of Milagro Energy in May 2008 provided substantial drilling upside,
these properties were historically undercapitalized and under maintained. In the
third quarter alone, Second Wave expended $842,000 ($9.80/boe for the quarter)
on operational projects to meet regulatory operational standards at these
properties.


The Company completed a two week turnaround in its Provost field in the third
quarter. Production curtailments during this turnaround reduced corporate
production for the quarter by 45 boe/d net and non-capitalized costs associated
with this turnaround amounted to $225,000 or $2.62 per boe for the quarter. In
2008, the Company budgeted $2,000,000 of capital to be spent on facility
expansions and upgrades in the Provost area with the last of these projects
scheduled to be completed prior to year end.


Historical operating costs in Provost have been $21.00 per boe with 70% to 80%
of these costs being fixed due to the high water cut nature of the production.
During the third quarter Second Wave completed its field turnaround and the
production from the field has subsequently increased by 250% from pre-turnaround
rates. Provost is the Company's largest producing property representing over 50%
of its production base and as such the Company believes that these improvements
will have a material impact in reducing corporate operating expenses on a go
forward basis.


The Company's work over and maintenance program on the acquired assets in the
third quarter accounted for $617,000 in operating expenditures or $7.19 per boe.
These expenditures are considered non-recurring and were required to meet
regulatory standards, maintain production and improve efficiencies. As these
assets were historically undercapitalized Second Wave expects that the majority
of these costs were one-time items.


On a go forward basis the Company has identified additional capital projects to
reduce operating costs in its core areas and anticipates that certain of these
will be completed in 2009. With increased production rates and the majority of
the asset integration costs now complete, the Company believes that long term
operating costs will begin to trend below their historical levels.


Operational Update 

Provost

In Provost, the Company has remained focused in 2008 on bringing its Mannville
exploration oil play to the developmental stage. Based on 3-D seismic and
geological mapping Second Wave estimates that this oil play contains over 20
mmboe of resources on Second Wave land, with the majority of the resources being
subject to freehold royalties and not Alberta crown royalty rates. Although
there is no certainty that it will be commercially viable to produce all of
these resources, the Company believes that, once delineated, this play can be
economically developed via horizontal wells utilizing multi-stage fracture
stimulation techniques. Year to date the Company has drilled four (4 net)
vertical wells to delineate the play, with three wells being successful. To
further define the Mannville play Second Wave has re-completed twelve (12 net)
existing well bores in 2008 with a 100% success rate.


Based on these results the Company has moved ahead on the development of this
Mannville resource via horizontal drilling. In the third and fourth quarter, two
(2 net) horizontal wells were drilled and completed successfully. Both
horizontal wells are now on production, and to date they have performed within
the Company's expectations at production rates per well in excess of 75 boe/d.
Second Wave has subsequently received approval from the ERCB to horizontally
develop all of its Mannville oil pools, and as such the Company could have an
additional 14 horizontal wells to drill on its existing land base in Provost.
Based on analog data the Company believes that these wells have the potential to
produce at initial rates of 75 boe/d with recoverable resources of 100 to 150
mboe.


Battle Creek

In Battle Creek, the Company plans to move forward on its CO2 Immiscible Flood
project in the Madison formation. Second Wave has a 100% working interest in
both a Madison heavy oil pool estimated to contain 18 mmbbl of original oil in
place and a Duperow gas reservoir internally estimated to contain 10 bcf of
original gas in place with an 85% CO2 concentration. Both reservoirs are 3-D
seismically defined with 19 well bores penetrating the Madison formation and 4
well bores into the Duperow formation which provide a substantial number of
control points for reservoir volume estimates.


During the fourth quarter, the Company signed a letter of intent for the
purchase of a CO2 processing plant in Battle Creek that will allow the Company
to process the Duperow gas and produce a high quality CO2 feed stock for the
flood project. Second Wave expects to complete the purchase in early 2009. With
this transaction, the Company is on track to initiate CO2 injection in the third
quarter of 2009 with reservoir response expected in the fourth quarter. Based on
analog and simulation data, the Company believes that a full flood has the
potential to increase production rates from the pool between two-fold and
four-fold and, according to current internal assessments, yield recoverable
resources of between 11% and 18% of the estimated original oil in place, or 1.26
mmbbl net to Second Wave.


Based on the horizontal well and EOR royalty holiday program in Saskatchewan,
the Company would expect to pay a substantially reduced royalty rate on all
incremental production from the pool. This project is expected provide material
financial upside to the Company even at current commodity prices.


Tableland

In the third quarter, Second Wave's partners finished their completion
operations on the second exploratory Sanish well in Tableland. However the
Operator has subsequently shut the well in during the fourth quarter as water
cuts at the end of an extended production test were higher than expected,
resulting in negative cash flows. This well was the second and final farm-in
commitment well on the Tableland land block and was drilled and completed at no
cost to the Company. Second Wave and its partners are reviewing the completion
techniques utilized on the second well as the test results differed materially
from the first horizontal Sanish well drilled in Tableland, which has produced
for 11 months with little to no change in its producing water cuts (averaging
66%).


In addition to the Sanish exploration activities Second Wave has continued to
review the recent Bakken horizontal drilling and production activities in the
area. A substantial amount of drilling activity has taken place over the last
quarter with commercial Bakken wells being drilled in close proximity to
Tableland. However with the volatility in commodity prices in combination with
high service costs, Second Wave will be delaying any additional drilling
activities in Tableland until the economics improve. The Company has continued
to acquire additional lands in the interim on its Bakken and Sanish exploration
plays in SE Saskatchewan with 15,680 net acres purchased in Tableland since the
end of the first quarter. The Tableland acreage has a significant amount of
tenure remaining on it and as such the Company will continue to review its
corporate drilling program and look to renew its exploration efforts when the
timing is appropriate.


2009 Outlook

Second Wave has grown via the drill bit and acquisitions in 2008, and remains on
track for an exit rate of 1,250 boe/d. With the recent developments in global
capital markets and commodity prices the Company has taken a more cautious
approach to its capital program in 2009 and has budgeted to utilize existing
cash flow and credit facilities for its capital projects. Second Wave remains
focused on oil projects and has a large inventory of lower risk prospects in its
core areas that can provide material growth to its shareholders within the
current commodity price environment. Further guidance on the 2009 capital budget
will be provided as the first quarter progresses. The Company will continue to
evaluate oil weighted consolidation opportunities to enhance shareholder value
and has an active land acquisition strategy in its core areas planned for 2009.


READER ADVISORIES

Forward-Looking Statements. This news release contains forward-looking
statements that are expressly qualified, in their entirety, by this caution.
Such statements include all disclosure concerning the plans, intentions or
expectations of the Company or its management in future periods. Forward-looking
statements are often, but not always, identified by words such as "believe",
"expect", "estimate", "intend", "plan", "seek", "anticipate", "projected",
"scheduled", "continue", "potential", "will", "may", "might", "should", "would",
"could" and similar expressions. Undue reliance should not be placed on
forward-looking statements, which are inherently uncertain, are based on
estimates and assumptions, and are subject to substantial known and unknown
risks and uncertainties, many of which are beyond the Company's control.
Forward-looking statements are not guarantees of future outcomes. There can be
no assurance that the plans, intentions or expectations contained in the
forward-looking statements or upon which they are based will in fact occur or be
realized, and actual results, performance or achievements may differ from those
expressed or implied in the forward-looking statements. The difference may be
material.


Specific forward looking statements contained in this news release include,
among others, statements regarding: 2008 year-end exit rate production levels
and the likelihood of target or expected rates being met, whether by the Company
as a whole or in respect of particular properties; future drilling prospects and
activities, whether in 2009 or later years; completion of the Company's
acquisition of the Batttle Creek CO2 plant; plans concerning the Madison CO2
flood project in 2009; expected operating expense improvements from the Provost
field turnaround completed in the third quarter of 2008; the effect of
additional capital projects on operating costs and anticipated timing of any
such projects; expectations with respect to applicable royalty rates on Battle
Creek production; and future growth prospects. Any other statements suggesting
future plans and outcomes, including any statements regarding possible
transactions, are also forward-looking statements. Statements concerning
estimated volumes of "in place" oil and gas resources are deemed to be
forward-looking statements as they involve an implied assessment, based on
certain estimates and assumptions, of the ability to produce in the future the
resources described.


In making the forward-looking statements contained in this news release, Second
Wave has made various assumptions regarding, among other things: future prices
of crude oil, natural gas and other commodities; future capital requirements;
the accessibility and cost of capital (including interest rates on borrowed
money); oil and gas volumes contained in the Company's properties; its ability
to economically produce oil and gas from its properties, and the timing and cost
to do so; its ability to obtain all required regulatory approvals on a timely
basis and subject to satisfactory terms and conditions; its ability to obtain
qualified staff, equipment and supplies in a timely and cost-efficient manner;
and the prevailing regulatory framework within which Second Wave will operate
and conduct its business, including with respect to royalties, taxes and
environmental matters.


Second Wave is subject to the inherent risks associated with the exploration,
development, exploitation and production of oil and gas. More particularly,
material risk factors that could cause actual results to differ materially from
those expressed or implied in the forward-looking statements contained in this
news release include: adverse changes in commodity prices, interest rates or
currency exchange rates; accessibility of capital when required and on
acceptable terms; lower than expected production of crude oil and natural gas;
production delays; lower than expected resource volumes on the Company's
properties; increased operating costs; ability to attract and retain qualified
personnel or to secure drilling rigs and other services on acceptable terms;
competition for labour, equipment and materials necessary to advance the
Company's projects; unforeseen engineering, environmental or geological
problems; ability to obtain all required regulatory approvals on a timely basis
and on satisfactory terms; and changes in laws and governmental regulations.
This list of factors is not exhaustive. Readers should also review the risk
factors described in other documents filed by the Company from time to time with
securities regulatory authorities in Canada, including its annual information
form dated April 29, 2008, copies of which are available electronically at
www.sedar.com and at www.secondwavepetroleum.com.


All forward-looking statements contained in this news release and any subsequent
forward-looking statements, whether written or oral, attributable to the Company
or persons acting on its behalf are qualified in their entirety by these
cautionary statements. Further, the included forward-looking statements are made
as of the date of this news release and Second Wave undertakes no obligation to
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required by law.


Disclosure Concerning Resources. The determination of oil and gas resources
(including reserves) involves the preparation of estimates that have an inherent
degree of associated risk and uncertainty. The estimation and classification of
resources requires the application of professional judgment combined with
geological and engineering knowledge to assess whether specific classification
criteria have been satisfied.


All "in place" volumes of oil and gas resources referred to in this news release
are classified as "discovered petroleum initially-in-place" within the meaning
of the Canadian Oil & Gas Evaluation Handbook (COGE Handbook). The term
"discovered petroleum initially-in-place" is equivalent to discovered resources,
and is defined in the COGE Handbook to mean that quantity of petroleum that is
estimated, as of a given date, to be contained in known accumulations prior to
production. The recoverable portion of discovered petroleum initially-in-place
includes production, reserves, and contingent resources; the remainder is
unrecoverable. There is no certainty that it will be commercially viable to
produce any portion of the resources referred to in this news release, none of
which have been classified as reserves or as "contingent resources" (defined in
the COGE Handbook as those quantities of petroleum estimated, as of a given
date, to be potentially recoverable from known accumulations using established
technology or technology under development, but which are not currently
considered to be commercially recoverable due to one or more contingencies that
can include factors such as economic, legal, environmental, political, and
regulatory matters, or a lack of markets). Accordingly, no portion of the "in
place" resource volumes referred to herein represent recoverable volumes at this
time.


Use of the term "BOE". The term BOE refers to barrel of oil equivalent. BOEs may
be misleading, particularly if used in isolation. A BOE conversion ratio of 6
Mcf per one (1) bbl is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.


31,025,209 Common Shares

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