CALGARY, ALBERTA--(Marketwire - Nov. 23, 2009) - Eaglewood Energy Inc. ("Eaglewood" or the "Corporation") (TSX VENTURE:EWD) announced that it has received the final non-refundable deposit of US $2,000,000 relating to the farm-out of PPL 259 from Mega Fortune International ("Mega"). Eaglewood has now received the total amount due of US $15,000,000 for Mega to earn a 10 percent participating interest in PPL 259.
The Corporation also announced that Eaglewood and Mega have entered into a second variation agreement regarding the PPL 259 farm-out agreement (the "Variation Agreement"). Under the terms of the Variation Agreement, in addition to the 10 percent interest in PPL 259 in return for the US $15,000,000 paid to Eaglewood, Mega can provide Eaglewood with US $20,000,000 for the funding of the first exploration well on PPL 259 by December 15, 2009 to earn an additional 50 percent participating interest in PPL 259. In the event that Mega does not provide this amount by December 15, 2009, their interest in PPL 259 will remain at 10 percent.
As a result of the variations and rig availability, the drilling of Ubuntu-1 is now expected to commence in the second quarter of 2010.
Certain statements contained in this press release 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. In particular, this press release contains forward-looking statements, pertaining to future payments to be made by Mega to the Corporation and commencement of drilling activities on PPL 259.
With respect to forward-looking statements above and contained in this press release, the Corporation has made assumptions regarding, among other things:
- the legislative and regulatory environment;
- the impact of increasing competition;
- unpredictable changes to the market prices for oil and natural gas;
- that costs related to development of the oil and gas properties will remain consistent with historical experiences;
- anticipated results of exploration activities; and
- ability to obtain additional financing if needed on satisfactory terms.
The Corporation's actual results could differ materially from those anticipated in these forward-looking statements as a result of the risk factors set forth below:
- volatility in the market prices for oil and natural gas;
- uncertainties associated with estimating resources;
- geological, technical, drilling and processing problems;
- liabilities and risks, including environmental liabilities and risks, inherent in oil and natural gas operations;
- fluctuations in currency and interest rates;
- competition for, among other things, capital and skilled personnel; and
- unpredictable weather conditions.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.