Eaglewood Energy Inc.
TSX VENTURE : EWD

Eaglewood Energy Inc.

September 20, 2010 14:53 ET

Eaglewood Undiscovered Hydrocarbon Resource Estimates

CALGARY, ALBERTA--(Marketwire - Sept. 20, 2010) - Eaglewood Energy Inc. (TSX VENTURE:EWD) ("Eaglewood" or the "Corporation") is pleased to report the undiscovered hydrocarbon resource estimates for two of its four exploration blocks. Fekete Associates Inc. ("Fekete"), an independent Calgary-based firm of geological and petroleum engineering consultants, conducted an independent technical review and assessment of the undiscovered hydrocarbon resource associated within Eaglewood's Petroleum Prospecting License ("PPL") 257 and PPL 258 as at August 31, 2010. The Report was prepared pursuant to the Canadian Securities National Instruments 51-101 Standards of Disclosure for Oil and Gas Activities.

The Report assigns mean(1) gross undiscovered resource in PPL 257 of 6.5 Trillion Cubic Feet and mean gross undiscovered resource in PPL 258 of 807 million barrels. 

Undiscovered resources are those quantities of petroleum estimated on a given date to be contained in accumulations yet to be discovered. Prospective resources are those quantities of oil and gas estimated on a given date to be potentially recoverable from undiscovered accumulations. If discovered, they would be technically and economically viable to recover by application of future development projects. Prospective resources have both a chance of discovery and a chance of development. There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that the resources will be commercially viable or be able to produce any portion of the resources. The Report is dated September 17, 2010 and the resource estimates were prepared as at August 31, 2010.

No quantitative geologic risk assessment was conducted by Fekete for these blocks. Geologic risking of prospective resources address the probability of success for the discovery of petroleum. This risk analysis is conducted independently of probabilistic estimates of petroleum volumes and without regard to the chance of development. Principal risk elements of the petroleum system include; i. trap and seal characteristics; ii. reservoir presence and quality; iii. source rock capacity, quality, and maturity; and iv. timing, migration, and preservation of petroleum in relation to trap and seal formation.

The resources discussed and shown in the Report are those undiscovered, highly speculative resources estimated beyond reserves or contingent resources where geological and geophysical data suggest the potential for discovery of petroleum but where the level of proof is insufficient for classification as reserves or contingent resources.

The resources evaluated in the Report are based on estimates of reservoir volumes and recovery efficiencies along with analogy to properties with similar geologic and reservoir characteristics. It will be necessary to revise these estimates as additional data becomes available. Also, estimates of resources may increase or decrease as a result of future operations.

(1) Mean is an arithmetic average of the low (P90), median (P50) and high (P10) data sets.

Forward-Looking Statements

Certain statements contained in this press release, such as statements relating to the existence of any hydrocarbons, may constitute forward-looking statements. These statements relate to future events or the Corporation'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. The Corporation 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. Cumulative volumes are not necessarily representative of future production volumes.

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