Eagle Rock Exploration Ltd.

Eagle Rock Exploration Ltd.

December 21, 2007 14:31 ET

Eagle Rock Exploration Closes Acquisition of Dragonheart Resources

CALGARY, ALBERTA--(Marketwire - Dec. 21, 2007) - Eagle Rock Exploration Ltd. ("Eagle Rock" or the "Company") (TSX VENTURE:ERX) announces that it has closed its previously announced acquisition of Dragonheart Resources Ltd ("Dragonheart"), an arm's length privately held Alberta based oil & gas company. The shareholders of Dragonheart approved the transaction at a special meeting held on December 20, 2007.

Eagle Rock issued 6,139,000 common shares to acquire all of the outstanding shares of Dragonheart on the basis of 1.4 common shares of Eagle Rock for each common share of Dragonheart, and issued warrants exercisable into 280,000 common shares until July 19, 2009 at an exercise price of $1.07. Eagle Rock also assumed the net debt of Dragonheart in the amount of approximately $1.4 million upon closing of the transaction.

The board of directors of Eagle Rock has approved the granting of incentive stock options under its stock option plan to certain of its officers, employees and consultants to acquire up to an aggregate of 610,000 common shares of Eagle Rock. All of the options are exercisable for a period of 5 years at price of $0.25 per share.

About Eagle Rock

Eagle Rock Exploration Ltd. is a publicly traded energy company involved in the exploration and development of low to medium risk oil and gas properties in Western Canada.

Eagle Rock Exploration Ltd. trades on the TSX Venture Exchange under the symbol ERX.

For more information please visit us at www.eaglerockexploration.com.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Eagle Rock Exploration Ltd.
    Jim Silye
    President and Chief Executive Officer
    (403) 269-4040
    (403) 261-1978 (FAX)
    Email: jimsilye@eagler.ca
    Eagle Rock Exploration Ltd.
    Steven J. Glover
    Vice-President, Finance, and Chief Financial Officer
    (403) 269-4040
    (403) 261-1978 (FAX)
    Email: sglover@eagler.ca
    Website: www.eaglerockexploration.com