Eaglewood Energy Inc.

Eaglewood Energy Inc.

September 29, 2011 14:46 ET

Eaglewood Energy Receives PPL 259 License Extension

CALGARY, ALBERTA--(Marketwire - Sept. 29, 2011) -

Eaglewood Energy Inc. (TSX VENTURE:EWD) ("Eaglewood") is pleased to announce that it has received the final instrument, duly executed by the Minister for Petroleum and Energy (the "Minister"), granting the variation and extension of the PPL 259 license in the Western Province of Papua New Guinea ('PNG"). The variation granted replaces the obligation to drill an appraisal well on the Ubuntu discovery with an obligation to shoot an additional 20 km of seismic and conduct geological and geophysical studies of a certain value. The extension is for five years, effective from the date of the grant.

CEO Brad Hurtubise commented "We are very pleased to have received the variation and extension confirming our ownership of the license and required work commitments during the term. PPL 259 is located in a very active area for the PNG oil and gas business, and includes our Ubuntu gas and gas condensate discovery containing at least 10 meters of net gas bearing Elevala sandstone. Since making the Ubuntu discovery our work programs have been suspended pending receipt of this variation and extension. This allows us to get on with the business of proving up the prospectivity of our license acreage and adding value for our shareholders and the people of the Western Province of PNG.

I am also encouraged by the progress being made on the extension applications for our other petroleum licenses, which we need in order to initiate any activity or transactions with respect to those licenses. I am further encouraged that a recommendation was made by the Petroleum Advisory Board to grant Eaglewood a petroleum retention licence (to be referred to as PRL 28) for the blocks pertaining to the Ubuntu discovery. We are currently awaiting the recommendation to be reviewed by the Minister and formal Instruments to be executed."

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

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