Eaglewood announces closing of sale of PPL 260 and update on PPL 259 farmin

Friday, Aug 17, 2012

Eaglewood Energy Inc. ("Eaglewood") (TSX VENTURE:EWD) 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".

Source: Marketwire

To access over 3,000 of the latest oil projects from across the world visit Projects OGP for free trial today