Eaglewood Energy Inc.
TSX VENTURE : EWD

Eaglewood Energy Inc.

January 20, 2011 09:42 ET

Eaglewood Energy Inc. Announces Over-Allotment Closing

CALGARY, ALBERTA--(Marketwire - Jan. 20, 2011) - Eaglewood Energy Inc. ("Eaglewood" or the "Corporation") (TSX VENTURE:EWD) is pleased to announce that it has closed the over-allotment option pursuant to its previously-announced short-form prospectus offering (the "Offering") with a syndicate of underwriters led by FirstEnergy Capital Corp. and included Cormark Securities Inc., Macquarie Capital Markets Canada Ltd. and Paradigm Capital Inc. (collectively, the "Underwriters"), pursuant to which the Underwriters purchased an additional 710,000 common shares at $0.75 per common share for aggregate gross proceeds of $532,500. Closing of the over-allotment option brings the aggregate gross proceeds of the Offering to $10,657,500.

The proceeds of the Offering are expected to be used for the location, drilling and demobilization costs in the Corporation's PPL 259 program in furtherance of its exploration and development plans.

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 the 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.

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