Eaglewood Energy Inc. : Eaglewood Energy Announces Closing of Horizon Farmout

CALGARY, ALBERTA--(Marketwire - April 11, 2012) - Eaglewood Energy Inc. (TSX VENTURE:EWD) ("Eaglewood") is pleased to announce that it has completed all the conditions precedent and received all the government approvals required to complete the farmout of 25% of PPL 259 to Ketu Petroleum Ltd, a wholly owned subsidiary of Horizon Oil Ltd ("Horizon"). At completion Horizon will pay Eaglewood approximately USD $2.5mm for sunk costs, fund their 25% interest of the seismic program currently underway on the license as well as funding of the first USD $1.375mm of Eaglewood's seismic costs. When the next PPL 259 exploration well is drilled, expected in Q4 of this year, Horizon will fund their 25% interest and pay USD $5.0mm of Eaglewood's drilling costs. With the Horizon transaction completed, Eaglewood can now lodge the appropriate documentation with the regulators to begin the regulatory approval process to complete the previously announced farmout of an additional 25% of PPL 259 to Mega Fortune International ("Mega").

CEO Brad Hurtubise commented "We are very pleased to have Horizon as a partner in PPL 259 as they bring a wealth of experience and information to the PPL 259 joint venture. With this deal closed we can begin in earnest the process to get the Mega deal closed, which will likely take a few months. With both transactions closed, our phase one and two seismic programs and our next well will be fully funded. We can use our remaining cash balance to further the unitisation discussions with the PRL 4 Joint Venture or to pursue additional exploration activities on our 100% owned PPL 257."

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

Forward-Looking Statements

Certain statements contained in this press release, such as statements relating to the timing of regulatory approval and closing of the Mega farmout and additional exploration activities, may constitute forward-looking statements. These statements relate to future events or Eaglewood'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. Eaglewood 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. 

Accordingly, readers should not place undue reliance on forward looking statements.