Eaglewood Energy Update on PPL 260 Farm-Out

CALGARY, ALBERTA--(Marketwire - Aug. 20, 2009) - Eaglewood Energy Inc. ("Eaglewood") (TSX VENTURE:EWD) is pleased to announce that the PPL 260 seismic program which was conducted by Oil Search (PNG) Limited ("OSPNG") in accordance with the terms of the farm-out agreement entered into in April 2009 has been completed and OSPNG has elected to drill a well to earn an additional 60 percent interest in PPL 260. In accordance with the terms of the farm-out agreement, OSPNG will pay 90 percent of the cost of drilling the first exploration well in PPL 260 to earn the additional 60 percent interest, bringing their total interest in the license to 70%. OSPNG has also assumed operatorship of PPL 260.

PPL 260 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 $14 billion ExxonMobil led PNG LNG project planned for first production in 2013/14.

Eaglewood's CEO Brad Hurtubise commented:

"We will select the first drilling location with OSPNG this fall. Preparation of the drilling location will likely begin during the fourth quarter of 2009 with drilling beginning early 2010. We are pleased the seismic has confirmed the prospectivity in PPL 260 and look forward to developing the license with OSPNG."

Forward-Looking Statements

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 expenditures to be made by Corporation and OSPNG to meet certain work commitments and work plans to be conducted by the Corporation and OSPNG.

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.
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