Eaglewood Energy Announces PPL 259 Farmout

Eaglewood Energy Inc. ("Eaglewood") (TSX VENTURE:EWD) is pleased to announce
that it has executed a farmout agreement with Ketu Petroleum Ltd, a wholly owned
subsidiary of Horizon Oil Ltd (ASX:HZN) ("Horizon") for 20% of Eaglewood's 65%
participating interest in PPL 259 in the Western Province of Papua New Guinea.
On completion of the transaction, Eaglewood will continue to own a 45%
participating interest in PPL 259 and retain operatorship.


Horizon currently has a 25% participating interest in PPL 259 which, after
completion of the farmout, will be increased to 45%. Further, upon completion of
Horizon's sale to Osaka Gas of 40% of its PNG interests (announced in May 2013)
its participating interest in PPL 259 will be reduced to 35%. Accordingly, on
completion of the farmout announced today and the Osaka Gas deal, the equity
interests in PPL 259 will be Eaglewood 45% (operator), Horizon 35%, Osaka Gas
10% and Mega Fortune International 10%. Horizon is also the operator of PRL 4
which contains the Stanley discovery adjacent to PPL 259 and PRL 21 (which
contains the Elevala, Ketu and Tingu discoveries) adjacent to the Ubuntu-1 gas
condensate discovery in PRL-28, in which Eaglewood has a 40% participating
interest and is operator. 


To earn the additional 20% participating interest in PPL 259, Horizon will be
required to pay to Eaglewood approximately USD $ 3.75 million for Eaglewood's
sunk costs, and in addition to Horizon funding its 35% participating interest,
it will be required to pay USD $5 million of Eaglewood's expenses for the next
PPL 259 well. 


It is currently expected that the next PPL-259 exploration well will spud during
the first half of 2014, although the exact timing of the well is yet to be
finalised with Horizon and the other PPL-259 participants.


The completion of the farmout transaction is conditional upon receipt of
regulatory approvals and certain other customary conditions. 


CEO Brad Hurtubise commented, "We are very pleased, upon closing of this farmout
transaction, to be fully funded to drill our next well in PPL 259 and have some
incremental capital to help finance our participation in the Stanley development
or secure additional seismic to identify our next drilling location. We are also
pleased to be furthering our relationship with a knowledgeable and experienced
partner like Horizon, who will be operating the next well. We expect, subject to
rig availability, the well will spud in the first half of next year."


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


Forward-Looking Statements

This document may contain "forward-looking statements" within the meaning of
Canadian securities legislation. These forward-looking statements are made as of
the date of this document and Eaglewood does not intend, and does not assume any
obligation, to update these forward-looking statements, other than as required
under Canadian securities legislation.

Forward-looking statements relate to future events or future performance and
reflect management of Eaglewood's expectations or beliefs regarding future
events. In certain cases, forward-looking statements can be identified by the
use of words such as "plans", "expects" or "does not expect", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words and phrases or
statements that certain actions, events or results "may", "could", "would",
"might" or "will be taken", "occur" or "be achieved" or the negative of these
terms or comparable terminology. By their very nature forward-looking statements
involve known and unknown risks, uncertainties and other factors which may cause
the actual results, performance or achievements of Eaglewood to be materially
different from any future results, performance or achievements expressed or
implied by the forward-looking statements. Such factors include, among others,
risks related to actual results of current exploration activities; changes in
project parameters as plans continue to be refined; future prices of oil and
gas; accidents, labour disputes and other risks of the mining industry; delays
in obtaining governmental approvals or financing or in the completion of
development or construction activities; as well as those factors detailed from
time to time in Eaglewood's interim and annual financial statements and
management's discussion and analysis of those statements, all of which are filed
and available for review on SEDAR at www.sedar.com. In particular, this press
release contains forward-looking statements including, but are not limited to,
statements with respect to the completion of a farmout transaction and
Eaglewood's expected drilling activities in 2014. Although Eaglewood has
attempted to identify important factors that could cause actual actions, events
or results to differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events or results not
to be as anticipated, estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such statements.


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

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.


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link: http://media3.marketwire.com/docs/915222m.pdf.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Eaglewood Energy Inc.
Brad Hurtubise
CEO
[phone]
[e-mail]


Eaglewood Energy Inc.
Ross Jones
Controller and CFO
[phone]
[e-mail]