Eaglewood Energy Inc.
TSX VENTURE : EWD

Eaglewood Energy Inc.

July 25, 2011 09:15 ET

Eaglewood Begins Stanley Unitization Negotiations With PRL 4 Joint Venture

CALGARY, ALBERTA--(Marketwire - July 25, 2011) - Eaglewood Energy Inc. (the "Corporation") (TSX VENTURE:EWD) announced today that it has received direction from the PNG Department of Petroleum and Energy ("DPE") to commence negotiations with the Petroleum Retention Licence 4 ("PRL 4") Joint Venture to unitize the Stanley Hydrocarbon Pool within PRL 4 with graticular block 1622 in the Corporation's Petroleum Prospecting Licence 259 ("PPL 259"), in Papua New Guinea.

Recent mapping presented by the operator of PRL 4 indicates that a connected portion of the Stanley petroleum pool at Toro Reservoir level extends beyond PRL 4 and into Eaglewood's PPL 259, specifically graticular block 1622 in the northwest corner of the license. This interpretation is consistent with the Corporation's ongoing mapping studies.

In May 2010, the Corporation lodged a letter with the DPE on behalf of the PPL 259 Joint Venture, requesting that the Minister consider the unitisation of PRL 4 and graticular block 1622 of PPL 259 prior to the establishment of a Petroleum Development Licence ("PDL") over the Stanley discovery.

In April 2011, the DPE sent letters to both the Corporation and the PRL 4 operator requesting that both parties conduct discussions with a view to achieving a unitization plan by voluntary agreement. If unresolved, the DPE may elect, at the expense of both parties, for an independent consultant to propose a resolution acceptable to the parties, failing which the DPE has indicated that it will continue with its ongoing consideration of the Stanley Field Development Plan submitted by the PRL 4 Operator in February 2009, but will not consider any submission of a Petroleum Development Licence application, until the issue is resolved to the satisfaction of the DPE and the Minister has advised accordingly.

CEO Brad Hurtubise commented "We are pleased to see the unitization discussions finally initiated, as the volume contained in our block may mean a material increase to our current contingent resource position. In light of the very successful Stanley-2 and Stanley-4 appraisal wells, the operator recently announced it expects the PDL will be awarded and a final investment decision made later this year, which means fast-track commercialisation of our share, once determined, of the unitized volume".

Forward-Looking Statements

Certain statements contained in this press release, such as statements relating to negotiations of a unitization plan for a portion of PPL 259, 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.

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.

Contact Information