Eaglewood Energy Inc.
TSX VENTURE : EWD

Eaglewood Energy Inc.

December 14, 2009 20:31 ET

Eaglewood Update on PPL 259 License

CALGARY, ALBERTA--(Marketwire - Dec. 14, 2009) - Eaglewood Energy Inc. ("Eaglewood") (TSX VENTURE:EWD) has been informed by Mega Fortune International, the Thai partners in Eaglewood's PPL 259 license, that they are unable to complete on the second instalment of $20mm by December 15, 2009 to earn an additional 50% interest in the license. As a result, Mega will remain holding a 10% participating interest for the $15mm it has already paid. 

Eaglewood retains a 90% participating interest in the license and is in continuing discussions with several other parties in respect of a farm-in for an interest in the PPL 259 license. 

The non-completion of the final instalment by Mega does not change Eaglewood's drilling or commercialisation plans for the PPL 259 license.

Mobilisation and scheduling of a drilling rig into the Western Province to be used to drill PPL 259 and adjacent licenses is expected to be underway early in the new year. As previously announced, Eaglewood expects to begin drilling the first well on PPL 259, Ubuntu-1, in March or April 2010.

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 potential farm in opportunities for PPL 259 as well as expected dates for commencement of drilling operations on that license.

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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