Eaglewood Energy Enters Farm-Out Agreement on PPL260

CALGARY, ALBERTA--(Marketwire - April 21, 2009) - Eaglewood Energy Inc. ("Eaglewood" or the "Corporation") (TSX VENTURE:EWD) wishes to announce that it has entered into a binding farm-out agreement in respect of PPL260 in the Papuan Basin Fold Belt, one of Eaglewood's four 100 percent owned exploration licenses in Papua New Guinea. The farm-out agreement is with Oil Search (PNG) Limited ("OSPNG"), a subsidiary of Oil Search Ltd., a company listed on the Australian Stock Exchange. OSPNG is the most active energy company in Papua New Guinea, and currently operates all the existing oil and gas production facilities in the country.

Under the terms of the farm-out agreement, OSPNG will pay Eaglewood US $1,500,000 and will complete the required seismic program at its sole cost by June 30, 2009 to earn a 10% interest in PPL260. OSPNG and Eaglewood plan to shoot further seismic in PPL260 at an estimated cost of US $1,600,000 of which Eaglewood's share is expected to be approximately US $800,000. After the completion of all the seismic work, OSPNG will have a three-month period in which to elect to earn an additional 60 percent interest in PPL260 in exchange for paying 90 percent of the cost of drilling an exploration well. PPL260 is on the same trend as the multi-TCF Hides and Juha gas fields which will be providing the majority of the gas for the $12 billion ExxonMobil led LNG project planned for first production in 2013.

The farm-out agreement is subject to certain conditions precedent, including receipt of Papua New Guinea Government approval to the farm-out and amendments to the work commitments under PPL260.

Eaglewood's CEO Brad Hurtubise commented: "While our business plan is to farm out interest in our licenses to generate activity and reduce costs, we still intend to maintain a significant equity ownership in our licenses. This farm-out is the first of four we are trying to finalize with various parties this year. We are delighted to have completed this agreement with OSPNG and to have them as our partner, given that they are a high quality operator with significant in-country expertise."

Forward-Looking Statements

This document may contain "forward-looking statements" within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date of this document and the Corporation does not intend, and does not assume any obligation, to update these forward-looking statements.

Forward-looking statements relate to future events or future performance and reflect management of the Corporation's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. 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 the Corporation 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 resources; possible variations in ore reserves, grade or recovery rates; 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 the Corporation'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. Although the Corporation 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.

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.
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