Eagle Rock Exploration Ltd.
TSX VENTURE : ERX

Eagle Rock Exploration Ltd.

May 26, 2006 09:15 ET

Eagle Rock Exploration Ltd. Announces Operational Update

CALGARY, ALBERTA--(CCNMatthews - May 26, 2006) - Eagle Rock Exploration Ltd. (TSX VENTURE:ERX) ("the Company") announces that it has now drilled five (5) offset wells surrounding its initial discovery well at LSD 12-01, Twp 15 Rge 18W3 in the Antelope Lake Area of S.W. Saskatchewan. These five (5) delineation wells have resulted in four (4) additional Upper Shaunavon oil wells and one (1) dry hole.

These wells are anticipated to increase the Company's net production from 140 BOEPD to approximately 500 BOEPD through its 42% working interest in this area. The production capacity for these wells ranges from 150 to 250 BOPD.

The Company will be participating in the drilling of an additional seven (7) wells in order to further delineate this new oil field. The second phase of delineation drilling is scheduled to be completed by the end of July 2006.

About the Corporation

The Company is a junior oil and gas company with a growth strategy based on upon drilling and strategic acquisitions and alliances in Western Canada.

Forward-looking Information

This news release contains forward-looking information. These forward-looking statements are based on certain assumptions that involve a number of risks and uncertainties and are not guarantees of future performance. Actual results could differ materially as a result of changes in the Company's plans, changes in the commodity prices, general economic, market, regulatory and business conditions as well as production, development and operating performance and other risks associated with oil and gas operations. There is no guarantee by the Company that actual results achieved will be the same as those forecast herein. Readers are cautioned that the foregoing list of important factors is not exhaustive. The forward-looking statements contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Barrels of oil equivalent (BOE's) may be misleading, particularly if used in isolation. In accordance with NI 51-101, a BOE conversion ratio for natural gas of 6 Mcf:1bbl has been used, which is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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)