Eagle Rock Exploration Ltd.

Eagle Rock Exploration Ltd.

October 02, 2007 16:21 ET

Eagle Rock Raises $4.1 Million in Over-Subscribed Private Placement

CALGARY, ALBERTA--(Marketwire - Oct. 2, 2007) - Eagle Rock Exploration Ltd. (TSX VENTURE:ERX) ("Eagle Rock" or "ERX") is pleased to announce it has successfully closed its previously announced non-brokered private placement by issuing 8,200,000 common shares at a price of $0.50 per common share for gross proceeds of $4,100,000. Eagle Rock initially targeted raising gross proceeds of $3.8 million on the issuance of 7.6 million common shares, however, demand for the offering resulted in the issuance of an additional 600,000 common shares for gross proceeds of $300,000. The common shares were issued on a flow-through basis eligible for Canadian exploration expense.

The net proceeds from the offering will be applied to Eagle Rock's 5 well drilling program in the Red Coulee/Coutts area of southern Alberta, with the extra net proceeds raised from the over-subscription being allotted to a 3D seismic program commencing in Q4 2007.

The offering is subject to filing final documentation with the TSX Venture Exchange customary for transactions of this nature.

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.

Forward-looking Information

This press release includes forward-looking statements and assumptions respecting ERX's strategies, future operations, expected financial results, financial sources, commodity prices, costs of production and quantum of oil and natural gas reserves and discusses certain issues, risks and uncertainties that can be expected to impact on any of such matters. By their nature, forward-looking statements are subject to numerous risks and uncertainties that can significantly affect future results. Actual future results may differ materially from those assumed or described in such forward-looking statements as a result of the impact of issues, risks and uncertainties whether described herein or not, which ERX may not be able to control. The reader is therefore cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements contained in this news release are made as of the date hereof and ERX 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.

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

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