Eaglewood Energy Inc.
TSX VENTURE : EWD

Eaglewood Energy Inc.

April 28, 2011 07:00 ET

Eaglewood Announces Contingent Resources on Ubuntu-1

CALGARY, ALBERTA--(Marketwire - April 28, 2011) - Eaglewood Energy Inc. (the "Corporation") (TSX VENTURE:EWD) is pleased to announce the results of a report of estimated resources on its Ubuntu-1 well in Papua New Guinea. Gaffney, Cline & Associates, an independent qualified reserves evaluator, prepared a Statement of Resources on the Ubuntu-1 well for the Corporation dated effective April 21, 2011 (the "GCA Report"). The resource estimates in the GCA Report are prepared in compliance with National Instrument 51-101 and the COGE Handbook.

The GCA Report discloses a Mean Estimate of natural gas initially in place of 85.6 BCF, and a mean estimate of natural gas liquids initially in place of 4.7 MMbbl. Using a 6:1 conversion ratio to convert natural gas liquids to natural gas equivalent, the estimated mean natural gas equivalent initially in place is113.8 BCFE.

The GCA Report also discloses, as part of the total resource estimate, 1C, 2C and 3C contingent resources of 18.9, 35.7 and 111.5 BCF of natural gas, respectively and 1C, 2C and 3C contingent resources of 0.69, 1.47 and 4.64 MMbbl of natural gas liquids, respectively.

There are a number of significant factors relevant to the estimates provided above, including, but not limited to:

  1. Requirement for additional 2D seismic acquisition to better define the structural framework of the Ubuntu discovery.
  2. Definition of a Field Development Plan (FDP) – current Recovery Factors are notional and based on a gas blowdown development scenario.
  3. Review of natural gas and natural gas liquids recovery factors once an FDP is decided.

There are also a number of contingencies which preclude the estimated resources from being classified as reserves. Such contingencies include, but are not limited to, the development plan envisaged by the Corporation and additional seismic acquisition and appraisal drilling.

CEO Brad Hurtubise commented "We are pleased to have the independent engineering report to help clarify the resources in the Ubuntu Discovery. In our opinion, this information supports our belief that Ubuntu can be commercialised, and clearly derisks our other prospects in the immediate area."

Reader Advisory

"Contingent resources" means those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political, and regulatory matters or a lack of markets. It is also appropriate to classify as contingent resources the estimated discovered recoverable quantities associated with a project in the early evaluation stage.

"Natural gas initially in place" and "natural gas liquids initially in place" mean those quantities of natural gas or natural gas liquids that are estimated to exist originally in naturally occurring accumulations. It includes that quantity of natural gas or natural gas liquids that are estimated, as of a given date, to be contained in known accumulations, prior to production.

"1C (Low Estimate or P90)" means a conservative estimate of the quantity that will actually be recovered from the accumulation. It is likely that the actual remaining quantities discovered will exceed the low estimate. If probabilistic methods are used, there should be at least a 90 percent probability that the quantities actually recovered will equal or exceed the low estimate.

"2C (Best Estimate or P50)" means the best estimate of the quantity that will actually be recovered from the accumulation. It is equally likely that the actual remaining quantities recovered will be greater or less than the best estimate. If probabilistic methods are used, there should be at least a 50 percent probability that the quantities actually recovered will equal or exceed the best estimate.

"3C (High Estimate or P10)" means an optimistic estimate of the quantity that will actually be recovered. It is unlikely that the actual remaining quantities recovered will exceed the high estimate. If probabilistic methods are used, there should be at least a 10 percent probability that the quantities actually recovered will equal or exceed the high estimate.

"Mean Estimate" represents the statistical mean of the Low Estimate, the Best Estimate and the High Estimate using probabilistic methods.

No proved, probable or possible reserves have been assigned to the Ubuntu well at this time. Undiscovered resources are those quantities of oil and gas estimated on a given date to be contained in accumulations yet to be discovered. Estimates of resources always involve uncertainty, and the degree of uncertainty can vary widely between accumulations/projects and over the life of a project. Readers are also advised that there is no certainty that it will be commercially viable to produce any portion of the resources.

Forward-Looking Statements

Certain statements contained in this press release, such as statements relating to resource estimates and planned evaluation activities, 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.

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