Eagle Energy Inc. Announces 2015 Annual Results and Reserves Information and Confirms March 2016 Dividend

CALGARY, ALBERTA--(Marketwired - March 18, 2016) - (TSX:EGL): Eagle Energy Inc. ("Eagle") is pleased to report the financial and operating results and reserves information for the year ended December 31, 2015 for its predecessor reporting issuer, Eagle Energy Trust (the "Trust")⁽¹⁾.

"Eagle's priorities in 2015 were to maintain a strong balance sheet, stable production base and sustainability of its business in light of a volatile and unpredictable commodity price environment," said Richard Clark, Eagle's President and CEO. "As a result of our efforts, Eagle stayed on course, hit its guidance and continued to realize on operational efficiencies. Our achievements over the past year have not only set us apart from our peer group, but left us well positioned to operate within the current environment."

Mr. Clark continued, "Eagle reported full year average production volumes of 3,358 barrels of oil equivalent per day and our operated properties, in particular at Salt Flat, outperformed plans. Our non-operated Dixonville property was below planned production due to two major field gathering lines not being re-activated. However, Eagle was able to replace the shortfall with Salt Flat production that had significantly higher netbacks, resulting in higher corporate cashflow."

"Over the year, Eagle targeted expense reduction initiatives. We took steps to preserve our financial liquidity and ensure the business was conducted within our cashflow. We kept our 2015 corporate payout ratio under 100%, had a 2015 year-end debt to trailing cash flow ratio of 2.1x and ended the year with 40% of unutilized bank lines on our $US 80 million credit facility. We also decreased absolute general and administrative expenses by 17% when compared to 2014 and held our monthly operating expenses at the low end of our guidance range."

"Eagle also executed on opportunities that were transformational to the business. First, in August 2015, we announced the acquisition of a private oil and gas company with assets in the Twining area of Alberta. This acquisition was key to growing our position in Canada and establishing a Canadian operations team based in Calgary. Our operations team has worked diligently to increase production and reduce operating costs on our Twining property and in utilizing well-by-well reviews and internally developed cost reduction processes, we reduced per barrel operating costs by 14% during the first four months of operating the properties."

"Second, in November 2015, Eagle announced that it had entered into an agreement to acquire Maple Leaf Royalties Corporation ("Maple Leaf"), which held royalty and non-operated working interests in Alberta. Eagle completed the Maple Leaf acquisition in January 2016, which further expanded our position in Alberta. At the same time, we completed a reorganization to convert from a trust into a corporate structure."

"We believe that the conversion is a crucial step in continuing to execute growth in both Canada and the United States and will also allow us to be more easily compared to our peers. We look forward to the opportunities that this transformation will create for Eagle in 2016."

Eagle's reserves data and other oil and gas information is included in its Annual Information Form dated March 17, 2016 for the year ended December 31, 2015 ("AIF"). The audited consolidated financial statements, management's discussion and analysis and AIF have been filed with the securities regulators and are available online under Eagle's issuer profile on SEDAR at www.sedar.com and on Eagle's website at www.EagleEnergy.com.

(1)	Prior to a reorganization that was completed on January 27, 2016, the business of Eagle Energy Inc. was conducted through a trust structure by Eagle Energy Trust. Information for the year ended December 31, 2015 pertains to the Trust.

Conference Call

Mr. Clark, Kelly Tomyn, Chief Financial Officer, and Wayne Wisniewski, Chief Operating Officer, will host a conference call and webcast on Friday, March 18 at 8:30 a.m. MDT (10:30 a.m. EDT) to discuss the results. To participate in the conference call, dial (647) 252-4453 or toll free at (877) 255-3077 approximately 10 minutes prior to the call and enter the code 45371752. To listen to the call on the web, visit http://www.gowebcasting.com/7292 at the time of the call. A question and answer period will follow the call.

Two hours after the live call, a digital recording will be available for replay until midnight on March 29, 2016. To access the recording, call 800-585-8367 and quote this conference ID: 45371752. An audio version will also be available on Eagle's website at www.EagleEnergy.com.

In this news release, references to "Eagle" include the Trust and its operating subsidiaries. This news release contains non-IFRS financial measures and statements that are forward-looking. Investors should read "Non-IFRS Financial Measures" and "Note about Forward-looking Statements" near the end of this news release. Figures within this news release are presented in Canadian dollars unless otherwise indicated.

Confirms March 2016 Dividend

Eagle's board of directors has confirmed a March 2016 dividend of $0.01 per share ($0.12 annualized), which is payable on April 22, 2016 to shareholders of record on March 31, 2016. The ex-dividend date is March 29, 2016.

Eagle's dividend has been designated as an "eligible dividend" for Canadian income tax purposes.

Highlights for the Year Ended December 31, 2015

Eagle achieved the following results in 2015:

• Acquired assets in the Twining field in Alberta in August 2015 at a total cost of $27.3 million and established a Canadian based operations team to complement its US based team.
• Continued to manage Eagle in a fiscally prudent manner, with 2015 year-end debt to trailing cash flow of 2.1x and 40% of its $US 80 million facility undrawn.
• Increased year-over-year proved developed producing reserves by 10%, total proved reserves by 14% and total proved plus probable reserves by 16%.
• Grew total proved plus probable reserves to approximately 18.6 million boe (70% proved, 58% proved producing).
• Achieved a total proved reserve replacement ratio of 234% and a total proved plus probable reserve replacement ratio of 307%.
• Executed a drilling program with a 100% success rate.
• Reported average working interest sales volumes of 3,358 barrels of oil equivalent per day ("boe/d"), (93% oil, 2% natural gas liquids ("NGLs") and 5% natural gas). Current working interest production approximates 3,700 boe/d.
• Reported funds flow from operations of $30.4 million ($25.09 per boe or $0.89 per Trust unit).
• On January 27, 2016, the Trust closed the previously announced acquisition of Maple Leaf and conversion into a corporate structure. The resulting entity, Eagle Energy Inc., is listed on the Toronto Stock Exchange. Its common shares trade under the symbol "EGL". The acquisition of Maple Leaf is expected to add approximately 235 boe/d from royalty interest, and 161 boe/d from working interest assets in Alberta.

2016 Budget and Outlook

This outlook section is intended to provide shareholders with information about Eagle's expectations for production and capital expenditures for 2016. Readers are cautioned that the information may not be appropriate for any other purpose. This information constitutes forward-looking information. Readers should note the assumptions, risks and discussions under "Note about Forward-Looking Statements" at the end of this news release.

Eagle's 2016 capital budget of $CA 5.0 million consists of $US 3.0.million for Eagle's operations in the United States and $0.8 million for Eagle's operations in Canada. The 2016 capital budget excludes future corporate and property acquisitions, which are evaluated separately on their own merit.

Eagle's 2016 capital budget, production and operating cost guidance remains unchanged from what Eagle previously announced on February 11, 2016:

	2016 Guidance	Notes
Capital Budget	$5.0 mm	(1)
Working Interest Production	3,200 to 3,600 boe/d	(2)
Operating Costs per month	$2.2 to $2.6 mm

Notes:

(1)	The 2016 capital budget of $CA 5.0 million consists of $US 3.0.million for Eagle's operations in the United States and $0.8 million for Eagle's operations in Canada. At an assumed $US 40.00 per barrel WTI oil price, Eagle's 2016 capital budget of $5.0 million and dividend of $0.01 per common share of Eagle per month ($0.12 per share annualized) results in a corporate payout ratio of 93%.
(2)	2016 production is forecast to consist of 87% oil, 10% natural gas and 3% NGLs. These numbers are working interest production numbers only and exclude 235 boe/d of royalty interest volumes from the acquisition of Maple Leaf that was completed on January 27, 2016.

Eagle's Funds Flow from Operations and Corporate Payout Ratio

A strengthening in the Canadian dollar has prompted a change in the foreign exchange rate assumptions. Refer to the table titled "Sensitivity to Commodity Price", below.

As a result of the change in the foreign exchange rate assumption, Eagle's funds flow from operations and corporate payout ratio are calculated as follows:

	Amount		Notes
Funds Flow from Operations	$10.8 mm		(1)
Basic Payout Ratio	48	%	(2)
Plus: Capital Expenditures	45	%
Equals: Corporate Payout Ratio	93	%	(3)

Notes:

(1)	2016 funds flow from operations is expected to be approximately $CA 10.8 million based on the following assumptions:
	(a)	average working interest production of 3,400 boe/d (the mid-point of the guidance range);
	(b)	pricing at $US 40.00 per barrel WTI oil, $US 3.16 per Mcf NYMEX gas, $CA 2.57 per Mcf AECO and $US 14.00 per barrel of NGL (NGL price is calculated as 35% of the WTI price);
	(c)	differential to WTI is $US 3.10 discount per barrel in Salt Flat, $US 3.50 discount per barrel in Hardeman, $CA 16.17 discount per barrel in Dixonville and $CA 12.67 discount per barrel in Twining;
	(d)	average operating costs of $CA 2.4 million per month ($US 0.9 million per month for Eagle's operations in the United States and $CA 1.2 million per month for Eagle's operations in Canada), the mid-point of the guidance range;
	(e)	foreign exchange rate of $US 1.00 equal to $CA 1.33 (previously $CA 1.40); and
	(f)	field netback (excluding hedges) of $10.56 per boe.

(2)	Eagle calculates its Basic Payout Ratio as follows:

Shareholder Dividends	=	Basic Payout Ratio
Funds Flow from Operations

(3)	Eagle calculates its Corporate Payout Ratio as follows:

Capital Expenditures + Shareholder Dividends	=	Corporate Payout Ratio
Funds Flow from Operations

(4)	Funds flow from operations, basic payout ratio and corporate payout ratio are non-IFRS financial measures. See the section titled "Non-IFRS Financial Measures".

The following tables show the sensitivity of Eagle's 2016 funds flow from operations, corporate payout ratio and debt to trailing cash flow to changes in commodity prices, exchange rates and production:

Sensitivity to Commodity Price	2016 Average WTI (Production 3,400 boe/d)
	$US 35 (FX 1.38)		$US 40 (FX 1.33)		$US 45 (FX 1.28)
Funds Flow from Operations ($CA)	$10.3		$10.8		$10.8
Corporate Payout Ratio	99	%	93	%	92	%
Debt to Trailing Cash Flow	6.4x		6.0x		6.0x
Sensitivity to Production	2016 Average Production (boe/d) (WTI $US 40, F/X 1.33)
	3,200		3,400		3,600
Funds Flow from Operations ($CA)	$10.0		$10.8		$11.5
Corporate Payout Ratio	101	%	93	%	87	%
Debt to Trailing Cash Flow	6.6x		6.0x		5.6x

Assumptions:

(1)	Annualized dividends are assumed to be $0.12 per share per year.
(2)	Operating costs are assumed to be $2.4 million per month (mid-point of guidance range).
(3)	Differential to WTI held constant.
(4)	Foreign exchange rate is assumed to be $US 1.00 equal to $CA 1.33 unless otherwise indicated in the table.

Operations Update

Eagle's operational focus in 2015 was to maximize field cashflow. Well reviews were performed on all wells with the objective of reducing operating costs. As a result, operating costs have been reduced by more than 40% at the Hardeman assets in North Texas and Oklahoma since Eagle assumed operatorship of these assets two years ago. The biggest portion of the operating expense reduction has been in water disposal costs, particularly in the southern operating area where a salt water disposal system was installed in September 2015. The project required electrification in the southern area which, in addition to powering the salt water disposal facility, will ultimately help improve run time and reduce propane charges in that part of the field.

At Salt Flat, Eagle continued to focus on operational efficiencies, achieving a 10% year-over-year per boe cost reduction for the past three years. Eagle produces over 100,000 barrels of water per day at Salt Flat, making it necessary to effectively and efficiently handle large volumes of produced water.

During 2015, Eagle established an operating presence in Canada as a result of the acquisition of the Dixonville properties at the end of 2014 and the Twining properties in August 2015. Production during the fourth quarter of 2015 was split evenly between the US and the Canadian properties. Eagle's operations team based in Calgary manages these properties and continues to examine operational efficiencies. Utilizing well-by-well review and internally developed operating cost reduction processes, Eagle reduced per barrel operating costs by 14% at Twining during the first four months operating the properties.

Eagle successfully drilled seven wells (including one salt water disposal well) in 2015, with capital spending and production within stated guidance. Three horizontal wells were drilled at Salt Flat, with first year production and estimated ultimate recovery from these three wells exceeding results from Eagle's previous drilling program in the area. At Hardeman, four vertical wells were drilled, one of which was the salt water disposal well.

Eagle produced an average of 3,358 boe/d, with Eagle's operated properties outperforming plans, in particular at Salt Flat. Dixonville (where Eagle has a 50% non-operated working interest) was below planned production due to two major field gathering lines not being re-activated. Eagle was able to replace the Dixonville production shortfall with Salt Flat barrels that had a significantly higher netback, resulting in higher corporate cashflow. As well, volumes in the fourth quarter included an average of 690 boe/d from the Twining acquisition.

Eagle achieved a 234% total proved reserves replacement ratio and made meaningful improvements to per boe netbacks through negotiating more favorable marketing contracts, decreasing general and administrative costs by thoughtful outsourcing of certain functions and undertaking targeted business process improvements.

Year-end Reserves Information

Eagle targets low risk, producing properties with development potential, and maintains or grows production by converting the non-producing portion of those assets into producing assets, thereby sustaining cash flow and dividends.

An independent evaluation of the Trust's US reserves was conducted by Netherland, Sewell & Associates, Inc. and of the Trust's Canadian reserves by McDaniel & Associates Consultants Ltd. These reserves evaluation reports are effective December 31, 2015 and were prepared in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities. Details regarding the Trust's reserves and oil and gas assets are set forth in Eagle's AIF.

2015 Year-End Reserves Report - Highlights

• Increased year-over-year proved developed producing reserves by 10%, total proved reserves by 14% and total proved plus probable reserves by 16%.
• Grew total proved plus probable reserves to approximately 18.6 million boe (70% proved, 58% proved producing).
• 94% of the proved developed producing reserves are light oil.
• Achieved total proved plus probable finding, development and acquisition costs (including changes in future development costs) of $14.02 per boe.
• Maintained Eagle's proved plus probable reserve life index above 14 years and replaced 234% of its reserves on a proved basis.

The following tables summarize the independent reserves estimates and values of Eagle's reserves as at December 31, 2015:

Summary of Reserves

Canadian Operations		Company Gross(1)
Reserves Categories		Crude Oil	Natural Gas Liquids	Natural Gas	Total Oil Equivalent 2015	Total Oil Equivalent 2014
		(Mbbls)	(Mbbls)	(MMcf)	(Mboe)	(Mboe)
Proved
	Developed producing	7,683	62	3,010	8,247	7,182
	Developed non-producing	61	10	410	139	-
	Undeveloped	581	26	1,082	787	159
Total proved		8,325	98	4,502	9,173	7,341
Total probable		3,635	64	2,853	4,174	2,877
Total proved plus probable		11,960	162	7,355	13,347	10,217
US Operations		Company Gross(1)
Reserves Categories		Crude Oil	Natural Gas Liquids	Natural Gas	Total Oil Equivalent 2015	Total Oil Equivalent 2014
		(Mbbls)	(Mbbls)	(MMcf)	(Mboe)	(Mboe)
Proved
	Developed producing	2,404	53	266	2,501	2,591
	Developed non-producing	324	11	76	348	397
	Undeveloped	998	4	27	1,007	1,052
Total proved		3,726	68	369	3,856	4,040
Total probable		1,350	4	26	1,358	1,748
Total proved plus probable		5,077	71	395	5,214	5,788
Total Company Operations		Company Gross(1)
Reserves Categories		Crude Oil	Natural Gas Liquids	Natural Gas	Total Oil Equivalent 2015	Total Oil Equivalent 2014
		(Mbbls)	(Mbbls)	(MMcf)	(Mboe)	(Mboe)
Proved
	Developed producing	10,087	115	3,277	10,748	9,773
	Developed non-producing	385	21	486	487	397
	Undeveloped	1,579	30	1,109	1,793	1,212
Total proved		12,051	165	4,871	13,028	11,381
Total probable		4,985	68	2,879	5,533	4,624
Total proved plus probable		17,037	233	7,750	18,561	16,006

Notes:

(1)	Company gross reserves are Eagle's total working interest share before the deduction of any royalties and without including any of Eagle's royalty interests.
(2)	Totals may not add due to rounding.

Summary of Net Present Value of Future Net Revenue of Reserves

Canadian Operations		Net Present Value of Future Net Revenue Before Income Taxes Discounted at (%/year)
Reserves Category		0%	5%	10%	15%	20%
$CA		($000's)	($000's)	($000's)	($000's)	($000's)
Proved
	Developed producing	239,819	141,693	95,665	70,945	56,086
	Developed non-producing	2,595	2,003	1,534	1,193	948
	Undeveloped	13,474	7,493	4,165	2,171	900
Total proved		255,887	151,189	101,365	74,309	57,934
Total probable		163,567	59,240	29,713	18,377	12,788
Total proved plus probable		419,454	210,429	131,078	92,685	70,721
US Operations		Net Present Value of Future Net Revenue Before Income Taxes Discounted at (%/year)
Reserves Category		0%	5%	10%	15%	20%
$US		($000's)	($000's)	($000's)	($000's)	($000's)
Proved
	Developed producing	60,908	43,721	35,481	30,463	26,984
	Developed non-producing	11,626	7,456	5,345	4,126	3,339
	Undeveloped	22,634	18,702	15,629	13,189	11,224
Total proved		95,168	69,879	56,455	47,777	41,548
Total probable		40,239	29,168	21,717	16,560	12,900
Total proved plus probable		135,407	99,047	78,172	64,338	54,447
Total Company Operations		Net Present Value of Future Net Revenue Before Income Taxes Discounted at (%/year)
Reserves Category		0%	5%	10%	15%	20%
$CA		($000's)	($000's)	($000's)	($000's)	($000's)
Proved
	Developed producing	316,511	197,398	141,247	110,324	91,144
	Developed non-producing	16,851	11,183	8,138	6,305	5,092
	Undeveloped	41,500	30,664	23,535	18,519	14,814
Total proved		374,862	239,245	172,920	135,148	111,049
Total probable		212,625	94,847	56,261	38,651	28,605
Total proved plus probable		587,487	334,092	229,181	173,799	139,655

Notes:

(1)

It should not be assumed that the net present values of estimated future net revenue shown above are representative of the fair market value of the reserves. There is no assurance that the underlying price and costs assumptions will be attained and variances could be material. The recovery and estimates of reserves provided in this news release are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual reserves may be greater than or less than the estimates provided.

(2)

The US operations numbers have been converted into Canadian dollars using the following foreign exchange rates: 2016 - $CA 1.00 equal to $US 0.730; 2017 - $CA 1.00 equal to $US 0.750; 2018 - $CA 1.00 equal to $US 0.800; 2019 - $CA 1.00 equal to $US 0.800; 2020 and thereafter - $CA 1.00 equal to $US 0.825 (as per McDaniel & Associates Consultants Ltd. January 1, 2016 price deck forecast).

At a 10% discount factor, proved developed producing reserves comprise 61% (2014 - 65%) of the total proved plus probable value. Total proved reserves account for 75% (2014 - 78%) of the total proved plus probable value.

Future Development Cost ("FDC")

Total future development costs are estimated at $30.4 million for total proved and $46.6 million for total proved plus probable reserves. When compared to 2016 funds flow guidance of $10.8 million (based on $US 40 WTI oil price and a foreign exchange rate of $US 1.00 equal to $CA 1.33), future development costs represent 2.8 years and 4.3 years of funds flow, respectively.

Reserves Performance Ratios

During 2015, Eagle's capital expenditures, including acquisition capital, resulted in capital efficiency statistics as shown in the following table. Statistics which cannot be meaningfully calculated are shown as a dashed line.

		2015				2014
		Proved		Proved plus Probable		Proved		Proved plus Probable
Reserves (Mboe)		13,028		18,561		11,381		16,006
Capital Expenditures ($M)
	Exploration and Development (E&D)(1)	14,134		14,134		13,037		13,037
	Acquisition(2)	30,970		30,970		106,319		106,319
	Disposition(2)	-		-		(150,141	)	(150,141	)
	Disposition (related E&D)	-		-		11,286		11,286
	Total Capital Expenditures	45,104		45,104		(19,500	)	(19,500	)
Field Netbacks ($/boe)(3)
	Current Year	19.30		19.30		49.75		49.75
Finding, Development and Acquisition Costs(5)
	Change in future development capital ($M)	8,652		8,006		11,535		18,865
	Reserve additions (Mboes)	2,880		3,788		8,529		11,517
	FD&A Costs including changes in FDC ($/boe)(5)	18.66		14.02		15.35		12.00
	FD&A Costs excluding changes in FDC ($/boe)(5)	15.66		11.91		13.99		10.36
	FD&A Recycle Ratio(4)	1.03		1.38		3.24		4.15
Reserves replacement(6)		234	%	307	%	145	%	265	%
Reserves life index (yrs)(7)		10.4		14.9		10.2		14.4

Notes:

(1)	The aggregate of the exploration and development costs ("E&D") incurred in the most recent financial year and the change during that year in estimated future development costs generally will not reflect total finding and development costs related to reserve additions for that year.
(2)	Acquisition relates to the August 2015 acquisition in Twining and the December 2014 acquisition of Dixonville. Disposition relates to the August 2014 divestiture of the Permian properties.
(3)	Field netbacks are calculated by subtracting royalties and operating costs from revenues.
(4)	The recycle ratio is calculated using Eagle's 2015 field netback of $19.30 per boe (2014 - $49.75 per boe) and dividing that number by finding, development and acquisition ("FD&A") costs per boe.
(5)	Eagle calculates FD&A costs incorporating both the costs and associated reserve additions related to development capital and acquisitions during the year.
(6)	The reserves replacement ratios are calculated by dividing total reserve additions by total working interest production for the year.
(7)	The 2015 reserve life index calculation is based on the mid-point of Eagle's 2016 average working interest production guidance of 3,400 boe/d and the 2014 reserve life index calculation was based on 3,050 boe/d.

Selected Annual Information

The following table shows selected information for the Trust's fiscal year ended December 31, 2015, December 31, 2014 and December 31, 2013.

Year ended December 31		2015		2014		2013
($000's except per Trust unit amounts and production)
Sales volumes - boe/d		3,358		2,782		3,004
Revenue, net of royalties		48,121		67,175		69,210
Field netback		23,659		50,522		57,260
Funds flow from operations		30,738		33,958		44,271
	per unit - basic	0.88		1.01		1.44
	per unit - diluted	0.88		1.00		1.44
Earnings (loss)		(76,046	)	(48,028	)	4,914
	per unit - basic	(2.18	)	(1.43	)	0.16
	per unit - diluted	(2.18	)	(1.55	)	0.16
Current assets		19,767		33,245		9,889
Current liabilities		9,397		10,720		30,461
Total assets		208,572		257,172		335,679
Total non-current liabilities		92,616		57,547		70,521
Unitholders' equity		106,559		188,905		234,697
Distributions declared		12,040		33,524		32,434
	per issued unit	0.35		0.99		1.05
Units issued		34,863		35,017		32,149

Summary of Quarterly Results

		Q4/2015		Q3/2015		Q2/2015		Q1/2015	Q4/2014		Q3/2014	Q2/2014		Q1/2014
($000's except for boe/d and per unit amounts)
Sales volumes - boe/d		3,783		3,607		3,034		2,995	1,929		2,859	3,341		3,010
Revenue, net of royalties		11,603		13,428		12,884		10,206	10,238		17,143	20,821		18,973
	per boe	33.34		40.46		46.66		37.86	57.67		65.19	68.48		70.04
Field netback		5,246		6,956		7,713		3,744	6,841		12,832	16,144		14,705
	per boe	15.08		20.96		27.94		13.89	38.54		48.80	53.10		54.29
Funds flow from operations		5,147		7,332		10,532		7,727	5,670		7,476	10,471		10,341
	per boe	14.79		22.09		38.14		28.67	31.94		28.43	34.44		38.18
	per unit - basic	0.15		0.21		0.30		0.22	0.16		0.22	0.32		0.32
	per unit - diluted	0.15		0.21		0.30		0.22	0.15		0.16	0.28		0.25
Earnings (loss)		(23,198	)	(51,784	)	(6,541	)	5,477	(35,192	)	8,104	(23,158	)	2,218
	per unit - basic	(0.67	)	(1.48	)	(0.19	)	0.16	(1.01	)	0.24	(0.70	)	0.07
	per unit - diluted	(0.67	)	(1.48	)	(0.19	)	0.16	(1.13	)	0.18	(0.70	)	0.02
Cash distributions declared		2,614		3,143		3,130		3,153	7,159		9,036	8,775		8,555
	per issued unit	0.07		0.09		0.09		0.09	0.21		0.26	0.26		0.26
Current assets		19,767		21,862		13,382		31,459	33,245		76,566	8,802		9,116
Current liabilities		9,397		8,033		7,754		8,642	10,720		13,587	32,878		33,348
Total assets		208,572		228,959		245,009		265,342	257,172		240,458	320,182		356,332
Total non-current liabilities		92,616		91,316		52,012		60,835	57,547		2,565	80,126		79,684
Unitholders' equity		106,559		129,611		185,243		195,865	188,905		224,306	207,178		243,300
Units issued		34,863		34,893		34,961		35,023	35,017		34,821	33,739		32,836

For the three months ended December 31, 2015, sales volumes increased when compared to the previous quarter due to the full benefits of the acquisition of a private company and drilling results exceeding expectations in the Salt Flat field.

Despite a quarter-over-quarter increase in production, funds flow from operations decreased in the fourth quarter of 2015 due to lower realized commodity prices. Generally, in times of decreasing prices, funds flow from operations decreases faster than decreases in sales volumes because certain expenses tend to be more fixed in nature, such as general and administrative expenses, and do not change with sales volumes. A quarter-over quarter increase in realized hedging gains partially offset the decline in commodity prices.

Earnings (loss) on a quarterly basis often does not move directionally or by the same amount as movements in funds flow from operations. This is primarily due to items of a non-cash nature that factor into the calculation of earnings (loss), and those that are required to be fair valued at each quarter end. While fourth quarter 2015 funds flow from operations decreased 25% from the third quarter level, a large third quarter impairment charge due to falling commodity prices actually resulted in a lower fourth quarter loss.

Advisories

Non-IFRS Financial Measures

Statements throughout this news release make reference to the terms "funds flow from operations", "field netback", "basic payout ratio" and "corporate payout ratio", which are non-IFRS financial measures that do not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other issuers. Management believes that these terms provide useful information to investors and management since such measures reflect the quality of production, the level of profitability, the ability to drive growth through the funding of future capital expenditures and the sustainability of dividends to shareholders.

"Funds flow from operations" is calculated before changes in non-cash working capital and abandonment expenditures. Management considers funds flow from operations to be a key measure as it demonstrates Eagle's ability to generate the cash necessary to pay dividends, repay debt, fund decommissioning liabilities and make capital investments. Management believes that by excluding the temporary impact of changes in non-cash operating working capital, funds flow from operations provides a useful measure of Eagle's ability to generate cash that is not subject to short-term movements in non-cash operating working capital.

"Field netback" is calculated by subtracting royalties and operating costs from revenues.

"Basic payout ratio" is calculated by dividing shareholder dividends by funds flow from operations.

"Corporate payout ratio" is calculated by dividing capital expenditures (excluding acquisition capital) plus shareholder dividends by funds flow from operations.

See the "Non-IFRS financial measures" section of Eagle's management discussion and analysis that relates to its annual financial statements for a reconciliation of funds flow from operations and field netback to earnings (loss) for the period, the most directly comparable measure in Eagle's audited annual consolidated financial statements.

Note about Forward-Looking Statements

Certain of the statements made and information contained in this news release are forward-looking statements and forward-looking information (collectively referred to as "forward-looking statements") within the meaning of Canadian securities laws. All statements other than statements of historic fact are forward-looking statements. Eagle cautions investors that important factors could cause Eagle's actual results to differ materially from those projected, or set out, in any forward-looking statements included in this news release.

In particular, and without limitation, this news release contains forward-looking statements pertaining to the following:

• Eagle's 2016 capital budget;
• Eagle's estimated volumes and values of reserves;
• Eagle's expectations regarding its 2016 full year average working interest production, operating costs and field netbacks (excluding hedges);
• Eagle's expectations regarding its 2016 funds flow from operations, basic and corporate payout ratios and debt to trailing cash flow, and sensitivities of some of these metrics to changes in production rates, exchange rates and commodity prices;
• future development costs associated with reserves;
• projected percentage weighting of crude oil, natural gas liquids and natural gas production levels;
• Eagle's strategy to target low risk, producing properties with development potential, and to maintain or grow production by converting the non-producing portion of those assets into producing assets, thereby sustaining cash flow and dividends; and
• Eagle's expectations regarding dividend levels.

With respect to forward-looking statements contained in this news release, assumptions have been made regarding, among other things:

• future oil, natural gas liquid and natural gas prices and weighting;
• future currency exchange rates;
• the regulatory framework governing taxes in the US and Canada;
• future recoverability of reserves and the accuracy of the estimates of Eagle's reserves volumes and values;
• future dividend levels;
• future capital expenditures and the ability of Eagle to obtain financing on acceptable terms for its capital projects and future acquisitions;
• Eagle's 2016 capital budget, which is subject to change in light of ongoing results, prevailing economic circumstances, commodity prices and industry conditions and regulations;
• not including capital required to pursue future acquisitions in the forecasted capital expenditures;
• the ability of Eagle to compete for new acquisitions;
• estimates of anticipated future production, which is based on the proposed 2016 drilling program with a success rate that, in turn, is based upon historical drilling success and an evaluation of the particular wells to be drilled; and
• projected operating costs, which are based on historical information and anticipated changes in the cost of equipment and services.

Eagle's actual results could differ materially from those anticipated in these forward-looking statements as a result of the risk factors set forth below and those in Eagle's AIF which is available on Eagle's website at www.EagleEnergy.com and on SEDAR at www.sedar.com:

• volatility of oil, natural gas liquid, and natural gas prices;
• commodity supply and demand;
• fluctuations in currency exchange and interest rates;
• inherent risks and changes in costs associated in the development of petroleum properties;
• ultimate recoverability of reserves;
• timing, results and costs of drilling and production activities;
• availability of financing and capital;
• the regulatory framework governing taxes in the U.S. and Canada; and
• new regulations and legislation that apply to Eagle and the operations of its subsidiaries.

Additional risks and uncertainties affecting Eagle are contained in the AIF under the heading "Risk Factors".

As a result of these risks, actual performance and financial results in 2016 may differ materially from any projections of future performance or results expressed or implied by these forward‐looking statements. Eagle's production rates, operating costs, field netbacks, drilling program, 2016 capital budget, funds flow from operations, reserves and dividends are subject to change in light of ongoing results, prevailing economic circumstances, obtaining regulatory approvals, commodity prices and industry conditions and regulations. New factors emerge from time to time, and it is not possible for management to predict all of these factors or to assess, in advance, the impact of each such factor on Eagle's business, or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement.

Undue reliance should not be placed on forward-looking statements, which are inherently uncertain, are based on estimates and assumptions, and are subject to known and unknown risks and uncertainties (both general and specific) that contribute to the possibility that the future events or circumstances contemplated by the forward-looking statements will not occur. Although management believes that the expectations conveyed by the forward-looking statements are reasonable based on information available to it on the date the forward-looking statements were made, there can be no assurance that the plans, intentions or expectations upon which forward-looking statements are based will in fact be realized. Actual results will differ, and the difference may be material and adverse to the Eagle and its shareholders. These statements speak only as of the date of this news release and may not be appropriate for other purposes. Eagle does not undertake any obligation, except as required by applicable securities legislation, to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise.

About Eagle Energy Inc.

Eagle is an oil and gas energy corporation created to provide investors with a sustainable business while delivering stable growth in production and overall growth through accretive acquisitions. Eagle's shares are traded on the Toronto Stock Exchange under the symbol "EGL".

All material information about Eagle may be found on its website at www.EagleEnergy.com or under Eagle's issuer profile at www.sedar.com.