Eaglewood Announces Stanley West Prospective Resources and

Eaglewood Announces Stanley West Prospective Resources and
Unitisation Progress 
CALGARY, ALBERTA -- (Marketwire) -- 10/11/12 -- Eaglewood Energy Inc.
(the "Corporation") (TSX VENTURE:EWD) is pleased to announce an
estimation of resources on the portion of the Stanley Hydrocarbon
Pool that encroaches into Eaglewood's Petroleum Prospecting License
259 ("PPL 259") in Papua New Guinea. The bulk of the Stanley field is
located within Petroleum Retention Licence 4 ("PRL 4"). The PRL 4
Joint Venture is operated by Horizon Oil Ltd. and includes Talisman
Energy Inc. and Mitsubishi Corporation. A portion of the Stanley
field lies in graticular block 1622 within PPL 259. The PPL 259 Joint
Venture is operated by Eaglewood and includes a subsidiary of Horizon
Oil Ltd. and Mega Fortune International. 
The Corporation acquired two 2D dip seismic lines over the Stanley
West feature in April 2012. Following the interpretation of these
lines and a review of publically available data released by the PRL 4
operator in respect of wells drilled in PRL 4, GaffneyCline &
Associates ("GCA"), an independent qualified reserves evaluator,
prepared the following update for the Corporation dated effective
July 31, 2012. The resource estimates from GCA are prepared using the
Petroleum Resources Management System published by the Society of
Petroleum Engineers / World Petroleum Council / American Association
of Petroleum Geologists / Society of Petroleum Evaluation Engineers
(SPE/WPC/AAPG/SPEE) in March, 2007 ("SPE PRMS") GCA considers that
these resource estimates are equivalent to those that would be
assessed under the Canadian Oil and Gas Evaluation Handbook ("COGEH")
and National Instrument (NI) 51-101 Standards of Disclosure for Oil
and Gas Activities. 
The GCA update reports a P50 Estimate of natural gas initially in
place of 49.5 Bscf, and a P50 estimate of natural gas liquids
initially in place of 2.1 MMBbl. The Corporation has used a 6:1
conversion ratio to convert natural gas liquids to natural gas
equivalent, with the estimated P50 natural gas equivalent initially
in place of 62.1 BCFE. 
A breakdown of the Gas Initially In Place, Condensate Initially In
Place and Unrisked Prospective Resources for Stanley West within PPL
259 is outlined in the tables below. Unrisked Prospective Resources
are stated on a 100% basis: 


 
--------------------------------------------------------
                          Prospective Resources         
       GIIP (Bscf)               (Bscf)           GCoS  
--------------------------------------------------------
                                                        
   P90     P50     P10     P90     P50     P10     62%  
------------------------------------------------        
  35.3    49.5    67.1     23     32.4    44.1          
--------------------------------------------------------
--------------------------------------------------------
                          Prospective Resources         
      CIIP (MMBbl)               (MMBbl)          GCos  
--------------------------------------------------------
                                                        
   P90     P50     P10     P90     P50     P10     62%  
------------------------------------------------        
   1.1     2.1     3.3    0.57     1.1    1.89          
--------------------------------------------------------

 
Notes 


 
1.  The Stanley West feature is considered a Prospect by GCA. Prospects are
    features that have been sufficiently well defined, on the basis of
    geological and geophysical data, to the point that they are considered
    viable drilling targets.  
2.  GCoS = Geological Chance of Success 
3.  The GCoS reported here represents an indicative estimate of the
    probability that drilling this Prospect would result in a discovery that
    would warrant the re-classification of that volume as a Contingent
    Resource. These GCoS values have not been arithmetically applied to the
    designated volumes within this assessment. Thus the volumes are
    "Unrisked". 
4.  A Tax/Royalty system applies and volumes are before deduction of Royalty

 
There are also a number of contingencies, which preclude the
estimated resources from being classified as reserves. Such
contingencies include, but are not limited to, an exploration well
being drilled resulting in a discovery, appraisal drilling and
additional seismic being performed to confirm the extent of the
discovery and a development plan being created and approved by the
Corporation. There is no certainty that it will be commercially
viable to produce any portion of the Prospective Resources stated
herein. 
CEO Brad Hurtubise commented "The completion of the GCA work is very
important to us as it shows that the encroaching volume represents a
sizeable portion of the Stanley hydrocarbon accumulation. We are very
pleased to have quantified the size of the Stanley Pool that
encroaches into PPL 259 and now have our data to initiate the
unitisation negotiations with the PRL 4 JV. The PNG Government
requires confirmation that the Stanley unitisation with PRL 4 and PPL
259 has been resolved prior to any review of the Stanley Petroleum
Development Licence, recently submitted by the PRL 4 JV to the PNG
Government."  
Reader Advisory 
"Prospective Resources" are those quantities of petroleum that are
estimated, as of a given date, to be potentially recoverable from
undiscovered accumulations by application of future development
projects. Prospective Resources have both a chance of discovery and a
chance of development. There is no certainty that any portion of the
resources will be discovered. If discovered, there is no certainty
that the resources will be commercially viable or the Corporation
will be able to produce any portion of the resources. 
"Gas Initially In Place" and " Condensate Initially In Place" mean
those quantities of natural gas or natural gas liquids that are
estimated to exist originally in naturally occurring accumulations.
It includes that quantity of natural gas or natural gas liquids that
are estimated, as of a given date, to be contained in known
accumulations, prior to production. 
"P90" means a conservative estimate of the quantity that will
actually be recovered from the accumulation. It is likely that the
actual remaining quantities discovered will exceed the low estimate.
If probabilistic methods are used, there should be at least a 90
percent probability that the quantities actually recovered will equal
or exceed the low estimate. 
"P50" means the best estimate of the quantity that will actually be
recovered from the accumulation. It is equally likely that the actual
remaining quantities recovered will be greater or less than the best
estimate. If probabilistic methods are used, there should be at least
a 50 percent probability that the quantities actually recovered will
equal or exceed the best estimate. 
"P10" means an optimistic estimate of the quantity that will actually
be recovered. It is unlikely that the actual remaining quantities
recovered will exceed the high estimate. If probabilistic methods are
used, there should be at least a 10 percent probability that the
quantities actually recovered will equal or exceed the high estimate. 
Forward-Looking Statements 
Certain statements contained in this press release, such as
statements relating to resource estimates and efforts to unitise the
Stanley Field 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.  
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:
Eaglewood Energy Inc.
Brad Hurtubise
President and CEO
(403) 264-6944
bhurtubise@eaglewoodenergy.ca 
Eaglewood Energy Inc.
Diana Moes
Controller and Interim CFO
(403) 264-6944
dmoes@eaglewoodenergy.ca
 
 
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