Eaglewood Energy Inc.
TSX VENTURE : EWD

Eaglewood Energy Inc.

September 16, 2009 13:16 ET

Eaglewood Energy PPL 259 Farm-Out Update

CALGARY, ALBERTA--(Marketwire - Sept. 16, 2009) - Eaglewood Energy Inc. ("Eaglewood" or the "Corporation") (TSX VENTURE:EWD) today announced an update to its previously announced farm-out of PPL 259 to Mega Fortune International ("Mega").

Originally Eaglewood was to receive a 25.103 percent interest in PRL 5 and an option to acquire up to a 10 percent interest in PRL 4 subject to Mega, through its parent company, P3 Global Energy Limited ""P3GE"), completing purchase and sale agreements with the holders of these licenses. Additionally, Mega was to fund up to US$20,000,000 for a well in PRL 5. The purchase and sale agreements were not completed and the purchase and sale process has now been terminated between P3GE and the other parties.

Eaglewood's CEO Brad Hurtubise commented:

"Eaglewood and Mega's farm-out for a 65 percent interest in PPL 259 is not affected by the exclusion of the PRL 5 interest and the option for an interest in PRL 4. We would have liked to have done both deals but will continue to move forward with the PPL 259 drilling plans for December 2009 and develop the license via small scale LNG."

Forward-Looking Statements

Certain statements contained in this press release may constitute forward-looking statements. These statements relate to future events or the Corporation's future performance. All statements, other than statements of historical fact, may be forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause events to differ materially from those anticipated in such forward-looking statements. The Corporation believes that the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon by investors as actual results may vary. These statements speak only as of the date of this press release and are expressly qualified, in their entirety, by this cautionary statement. In particular, this press release contains forward-looking statements, pertaining to work plans to be conducted by the Corporation and Mega.

With respect to forward-looking statements above and contained in this press release, the Corporation has made assumptions regarding, among other things:

- the legislative and regulatory environment;

- the impact of increasing competition;

- unpredictable changes to the market prices for oil and natural gas;

- that costs related to development of the oil and gas properties will remain consistent with historical experiences;

- anticipated results of exploration activities; and

- ability to obtain additional financing if needed on satisfactory terms.

The Corporation's actual results could differ materially from those anticipated in these forward-looking statements as a result of the risk factors set forth below:

- volatility in the market prices for oil and natural gas;

- uncertainties associated with estimating resources;

- geological, technical, drilling and processing problems;

- liabilities and risks, including environmental liabilities and risks, inherent in oil and natural gas operations;

- fluctuations in currency and interest rates;

- competition for, among other things, capital and skilled personnel; and

- unpredictable weather conditions.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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