DPE Drake Energy Ltd.

Eaglewood Energy Inc. (the "Corporation") (TSX VENTURE:EWD) announced today that
it has received direction from the PNG Department of Petroleum and Energy
("DPE") to commence negotiations with the Petroleum Retention Licence 4 ("PRL
4") Joint Venture to unitize the Stanley Hydrocarbon Pool within PRL 4 with
graticular block 1622 in the Corporation's Petroleum Prospecting Licence 259
("PPL 259"), in Papua New Guinea.


Recent mapping presented by the operator of PRL 4 indicates that a connected
portion of the Stanley petroleum pool at Toro Reservoir level extends beyond PRL
4 and into Eaglewood's PPL 259, specifically graticular block 1622 in the
northwest corner of the license. This interpretation is consistent with the
Corporation's ongoing mapping studies.


In May 2010, the Corporation lodged a letter with the DPE on behalf of the PPL
259 Joint Venture, requesting that the Minister consider the unitisation of PRL
4 and graticular block 1622 of PPL 259 prior to the establishment of a Petroleum
Development Licence ("PDL") over the Stanley discovery.


In April 2011, the DPE sent letters to both the Corporation and the PRL 4
operator requesting that both parties conduct discussions with a view to
achieving a unitization plan by voluntary agreement. If unresolved, the DPE may
elect, at the expense of both parties, for an independent consultant to propose
a resolution acceptable to the parties, failing which the DPE has indicated that
it will continue with its ongoing consideration of the Stanley Field Development
Plan submitted by the PRL 4 Operator in February 2009, but will not consider any
submission of a Petroleum Development Licence application, until the issue is
resolved to the satisfaction of the DPE and the Minister has advised
accordingly.


CEO Brad Hurtubise commented "We are pleased to see the unitization discussions
finally initiated, as the volume contained in our block may mean a material
increase to our current contingent resource position. In light of the very
successful Stanley-2 and Stanley-4 appraisal wells, the operator recently
announced it expects the PDL will be awarded and a final investment decision
made later this year, which means fast-track commercialisation of our share,
once determined, of the unitized volume".


Forward-Looking Statements

Certain statements contained in this press release, such as statements relating
to negotiations of a unitization plan for a portion of PPL 259, 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.

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