Eaglewood Announces Closing of Sale of PPL 260 and Update on PPL 259 Farmin

Eaglewood Energy Inc.  ("Eaglewood") (TSX VENTURE:EWD.V - News) is pleased to announce that the final instalment payment of USD $2.45 million has been received from Esso PNG Exploration Limited ("Esso"), a subsidiary of ExxonMobil, completing the sale of Eaglewood's equity interest in PPL 260. 

Additionally, Mega Fortune International Ltd. ("Mega"), a 10% equity participant in Eaglewood's PPL 259 and PRL 28 licenses has failed to complete its obligations under a previously announced farmout agreement for an additional 25% of Eaglewood's equity interest in PPL 259. As a result of the non-completion of the transaction, Eaglewood will continue to own a 65% equity interest in PPL 259 and retain operatorship.

CEO Brad Hurtubise commented "We are very pleased to have completed the Esso transaction which provides additional capital to re-deploy in our other licenses. As a result of the recent drilling activity around the PPL 259 area and the positive results from our first phase of seismic on PPL 259, we have seen a lot of interest in farming into the license. With the non-completion of the Mega farmout, we are now in a position to be able to do additional farmouts on better terms than the Mega transaction and still maintain a large working interest and operatorship. We have more than sufficient cash on our balance sheet to fund our next phase of seismic and complete the site preparation for our next well in Q1 2013. We are confident we can find a partner to come into the license to help us continue to fund its further development."

Eaglewood is a junior Canadian oil and gas exploration company that trades on the TSX Venture Exchange under the symbol "EWD".

Forward-Looking Statements

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 oil and gas 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, Eaglewood's expected drilling activities and Eaglewood's ability to obtain a farmout partner regarding PPL 259. 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. 

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.

Contacts

Brad Hurtubise

Eaglewood Energy Inc.

President and CEO

(403) 264-6944

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Diana Moes

Eaglewood Energy Inc.

CFO

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