Eaglewood Energy Inc.

Eaglewood Energy Inc.

November 11, 2010 09:00 ET

Eaglewood Energy Enters Farm-Out Agreement on PPL 259- Ubuntu Prospect

CALGARY, ALBERTA--(Marketwire - Nov. 11, 2010) - Eaglewood Energy Inc. (TSX VENTURE:EWD) ("Eaglewood") is pleased to announce today that, together with Eaglewood's wholly-owned subsidiary, Eaglewood Energy (BVI) Limited, it has signed a farmout agreement with Talisman Energy Niugini Limited ("Talisman") with respect to the Ubuntu prospect on its PPL 259 license (the "License") in the forelands of PNG (the "Agreement"). 

Under the terms of the Agreement, Talisman will contractually earn a 50 percent participating interest in the two graticular blocks of PPL 259 containing the Ubuntu prospect by paying US$4,500,000, comprised of Talisman's acquisition of engineering work to date on river transport and liquids handling designs and previous expenditures on the Ubuntu prospect. In addition, Talisman will pay 50 percent of the drilling and its other participating interest costs going forward.

The first well on the prospect, Ubuntu-1, is scheduled to begin drilling in November of this year.

The completion of the farm-out is subject to certain conditions precedent, including the delivery of certain ancillary documents, some of which will be pledged as security by Eaglewood against its obligations under the Agreement.

Eaglewood's CEO Brad Hurtubise commented:

"We are delighted to be working with Talisman on this prospect as they are so actively involved in the PNG Forelands. This transaction will allow the regional players to better cooperate and coordinate to manage the logistics of our respective work programs. Our shared vision of a condensate stripping operation to begin the monetization of the regional hydrocarbon assets prior to LNG production can be accelerated with this transaction and we look forward to developing this important relationship further."

Forward-Looking Statements

This document may contain "forward-looking statements" within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date of this document and Eaglewood does not intend, and does not assume any obligation, to update these forward-looking statements.

Forward-looking statements relate to future events or future performance and reflect management of Eaglewood's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Eaglewood to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in Eaglewood's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. In particular, this press release contains forward-looking statements pertaining to the future payments to be made by Talisman and the completion of the farm-out. Although Eaglewood has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

Accordingly, readers should not place undue reliance on forward looking statements.

To view the PPL 259 Map, please visit the following link: http://media3.marketwire.com/docs/ewd-map.pdf


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