CALGARY, ALBERTA -- (Marketwired) -- 12/04/13 -- Eaglewood Energy Inc. (TSX VENTURE: EWD) ("Eaglewood") is pleased to announce that it has executed a Unitisation Agreement with the PRL-4 (Stanley Field) Joint Venture, whereby Eaglewood will formally become a participant in the Stanley Field Development.
Eaglewood's equity participation will be determined over the next approximately 90 to 120 days following the exchange of data between the PPL-259 and PRL-4 Joint Ventures. Once the equity interests of the PPL 259 parties are determined they will have an undivided interest in the Stanley development facilities and the proved, probable and contingent resources associated with the field. They will also be responsible for their share of the sunk cost and on-going cash calls as the project moves toward first condensate production expected in late 2015.
Upon the determination of Eaglewood's equity participation in the Stanley development, it expects to fund its commitments from a combination of existing cash reserves, a bridge financing facility provided by one of the Stanley participants and additional equity from a strategic partner or capital markets. Eaglewood is also in discussions with debt providers.
Horizon Oil Limited ("Horizon"), the operator of the project expects Petroleum Development Licence 10 ("PDL 10") will be awarded over the Stanley Project by the end of the year. The Stanley development is a gas condensate development that is targeted to commence production in late 2015. Horizon has indicated that initial condensate production is forecast to be approximately 4,000 barrels per day and gas will initially be re-cycled until gas sales contracts are finalised.
CEO Brad Hurtubise, commented, "We are very pleased to finally be officially participating in the Stanley development. With the recently announced farmout of 20% of our PPL 259 license, the Nama well we will be drilling next year is fully funded and is expected to be tied into Stanley. The Stanley development is the first hydrocarbon development project in the Western Province and given its proximity to PPL-259 it is strategically very important for Eaglewood to be in this project and the key infrastructure that will be constructed. As a condensate recovery project the economics are very positive, and can be substantially improved with a gas sales contract. As a participant in the project Eaglewood can elect to market its' gas with the Joint Venture or independently. Once our equity position is finalised we will be actively pursuing local gas sales opportunities."
Eaglewood is a junior Canadian oil and gas exploration company that trades on the TSX Venture Exchange under the symbol "EWD".
This document may contain "forward-looking statements" within the meaning of Canadian securities legislation. These forward-looking statements are made as of the date of this document and Eaglewood does not intend, and does not assume any obligation, to update these forward-looking statements, other than as required under Canadian securities legislation.
Forward-looking statements relate to future events or future performance and reflect management of Eaglewood's expectations or beliefs regarding future events. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Eaglewood to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of oil and gas; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in Eaglewood's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. In particular, this press release contains forward-looking statements including, but are not limited to, statements with respect to the acquisition of new seismic data and Eaglewood's expected drilling activities in 2012. Although Eaglewood has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking statements.
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