Eaglewood Energy Inc.
TSX VENTURE : EWD

Eaglewood Energy Inc.

November 29, 2010 17:03 ET

Eaglewood Energy Inc. Announces $10 Million Bought Deal Equity Financing

CALGARY, ALBERTA--(Marketwire - Nov. 29, 2010) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Eaglewood Energy Inc. ("Eaglewood" or the "Corporation") (TSX VENTURE:EWD) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by FirstEnergy Capital Corp. and including Cormark Securities Inc., Macquarie Capital Markets Canada Ltd., and Paradigm Capital Inc. under which they have agreed to purchase for resale to the public, on a bought deal basis, 13,500,000 Common Shares ("Common Shares") at $0.75 per Common Share for aggregate gross proceeds of $10,125,000.00.

In addition, the Underwriters have been granted an over-allotment option, exercisable for a period commencing at closing of the offering (the "Closing") and ending 30 days following Closing, to purchase up to 15% additional Common Shares at a price of $0.75 per Common Share. If the over-allotment is fully exercised, gross proceeds from the offering will be approximately $11.6 million.

Proceeds from the Offering are expected to be used to fund ongoing exploration and development expenditures, working capital and for general corporate purposes. Brad Hurtubise, President and Chief Executive Officer of Eaglewood, commented "The proceeds from this financing will allow us to continue to pursue our on-going drilling plans and meet certain of our license commitments."

The Common Shares shall be offered in all provinces of Canada (other than Quebec) by way of short form prospectus, and in the U.S. on a private placement basis pursuant to exemptions from registration requirements. The closing of the offering is expected to occur on December 16, 2010, and is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.

Eaglewood is a junior Canadian oil and gas exploration company that trades on the TSX Venture Exchange under the symbol "EWD".

Cautionary Note Regarding Forward-Looking Statements

Certain statements contained herein constitute forward-looking statements, including statements concerning the anticipated use of proceeds. We believe 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 herein should not be unduly relied upon. The forward-looking statements included in this press release are made as of the date of this press release and Eaglewood disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.

The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirement. This media release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there by any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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