Atlas Energy Ltd. Enters Into $25.5 Million Bought Deal Financing

May 24, 2006

Release Date: May 24, 2006
08:18 EDT Wednesday, May 24, 2006

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW/

CALGARY, May 24 /CNW/ – Atlas Energy Ltd. (TSX:AED) is pleased to announce that it has entered into a bought deal financing with a syndicate of underwriters led by Peters & Co. Limited and including FirstEnergy Capital Corp., GMP Securities Ltd. and BMO Nesbitt Burns Inc. in respect of an offering of 5,000,000 common shares at a price of $5.10 per share for gross proceeds of $25,500,000. Completion of the financing is subject to all normal regulatory approvals. The common shares will be offered in each of the provinces of British Columbia, Alberta, Saskatchewan, Manitoba and Ontario by way of short form prospectus. The financing is expected to close on or about June 13, 2006.

Proceeds of the financing will be used to reduce corporate indebtedness and to fund ongoing oil and natural gas exploration and development expenditures.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The common shares offered will not be and have not been registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.

Certain information regarding Atlas contained herein may constitute forward looking statements. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although Atlas believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. Atlas’s forward-looking statements are expressly qualified in their entirety by this cautionary statement.

For further information: Atlas Energy Ltd., Richard Lewanski, President and C.E.O., (403) 215-8314; Atlas Energy Ltd., James C. (Pep) Lough, Vice-President, Finance and C.F.O., (403) 538-0065; Investor information email: investorinfo@atlasenergyltd.com, Website www.atlasenergyltd.com