[1] With major rebuilding necessary, the Oilers began the NHL free agency period on July 1, trading Joffrey Lupul and Jason Smith to the Philadelphia Flyers for defencemen Joni Pitkanen, left winger Geoff Sanderson and a third-round pick in the 2009 NHL Entry Draft.
The Oilers made a call to Ryan Smyth's agent early in the morning on July 1 stating they were interested in making an offer.
On July 5, the Oilers offered restricted free agent Thomas Vanek from the Buffalo Sabres a seven-year contract worth $50 million.
[6] On July 12, the Oilers signed unrestricted free agent Sheldon Souray to a five-year, $27 million deal.
On July 20, the Oilers signed Newly acquired defenceman Joni Pitkanen to a one-year, $2.4 million deal.
After shipping their prospects out across several clubs, the Oilers have signed a deal with the Springfield Falcons to be their American Hockey League (AHL) affiliate in 2007–08.