Eaglewood Announces Stanley West Prospective Resources and Unitisation Progress

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.