Eaglewood Energy Inc.
TSX VENTURE : EWD

Eaglewood Energy Inc.

February 07, 2011 13:41 ET

Eaglewood Energy Makes Gas Condensate Discovery in PPL-259

CALGARY, ALBERTA--(Marketwire - Feb. 7, 2011) - Eaglewood Energy Inc. (TSX VENTURE:EWD) ("Eaglewood"), as operator of PPL 259 advises that at 00:00 hours (GMT + 10hrs) preparations are underway to suspend Ubuntu-1 as a condensate rich gas discovery. Wire-line log and pressure measurement data suggests the well is capable of flowing gas at commercial flow rates.

Significant information from Ubuntu-1 is outlined below:

· The well has penetrated at least 10 meters of net gas bearing Elevala Sandstone over the gross interval 3,305 to 3,330m MD.

· Wire line pressure testing of six valid data points in the Elevala sandstone shows a condensate rich gas gradient, indicating that the reservoir contains moveable gas and liquids. The gradient is similar to high yielding condensate gas wells in nearby offset wells Elevala and Ketu, suggesting that the gas could have similar properties.

· The gas water contact has not been penetrated, indicating the potential for additional gas below the Elevala Sandstone intersection depth in Ubuntu-1.

· Estimations of reservoir permeability (indicative of flow rates) based on log derived porosity and six pressure data points, suggest that the Elevala sandstone is of good quality and will flow gas and condensate.

· As the Operator has currently mapped, the well is located below the trap crest of the Ubuntu structure, which is approximately 1km to the west.

At this time, wireline pressure testing and sampling are continuing in order to establish the full extent of the hydrocarbon column and to recover hydrocarbon samples from the reservoir for further testing and analysis. Further appraisal will be required to fully delineate the structure.

Commenting on the discovery, CEO Brad Hurtubise said: "The Ubuntu-1 discovery is a great result for Eaglewood Energy. We are very pleased to have this new pool discovery confirming that PPL-259 is situated in a very prospective hydrocarbon fairway. Work is on-going to gain a better understanding of the size of the Ubuntu pool. What we have learned from this well will help us better interpret the seismic we are acquiring over the numerous other prospects we have in the vicinity of Ubuntu and the existing PRL 5 discoveries and to attract farm-in partners to drill some of these prospects. The proximity of Ubuntu-1 to the Ketu and Elevala discoveries on PRL 5 some 20 kms away enhances to opportunity for a coordinated gas condensate development in the area."

The Ubuntu-1 well is located on Petroleum Prospecting License 259 (the "259 License"), approximately 17 kilometres east of the Ketu and Elevala gas condensate discoveries in Papua New Guinea. Eaglewood is the operator of the 259 License, holding a 40 percent participating interest in the Ubuntu Area and a 90 percent interest in the rest of the 259 License.

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

Forward-Looking Statements

Certain statements contained in this press release, such as statements relating to planned exploration and evaluation activities, may constitute forward-looking statements. These statements relate to future events or Eaglewood'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. Eaglewood 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. In particular, this press release contains forward-looking statements pertaining to the discovery and expected future production of hydrocarbons from the Ubuntu-1 well.

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