Eaglewood Energy Increases Acreage Position in PNG Gas Fairway

Eaglewood Energy Inc. ("Eaglewood") (TSX VENTURE:EWD) is pleased to announce
that the Minister for Petroleum and Energy for Papua New Guinea ('PNG") has
offered Eaglewood and Ketu Petroleum Limited ("Ketu"), a wholly owned subsidiary
of Horizon Oil Limited, Petroleum Prospecting License ("PPL") 430, a license for
which Eaglewood and Ketu had previously applied The license comprises eight
graticular blocks and is located immediately south of PPL 259 in the Western
Province of PNG. It covers a total area of 649 square km and is 30 km south of
gas and condensate discoveries of Ubuntu in PRL 28 and Elevala and Ketu in PRL
21. The main provincial town of Kiunga, situated on the Fly River, is located
50km to the northwest of PPL 430. Eaglewood and Ketu, as joint venture parties
(the "Joint Venture") have been awarded an equal 50:50 interest in PPL 430, with
Ketu nominated as the Operator. 


The term of PPL 430 is six years, effective from the date of the grant. The work
commitments associated with the grant in the first two years are to conduct
technical studies on the license and acquire approximately 20km of seismic at a
cost to the Joint Venture of no less than $1,000,000. In years three and four,
contingent on the results of those studies, the Joint Venture will drill an
exploration well and in years five and six, contingent on a discovery, drill a
further well. 


CEO Brad Hurtubise commented "We are pleased to have been offered PPL 430. We
had previously owned the blocks in PPL 430 as they are some of the blocks we had
to relinquish as part of our license extension of PPL 259, and we wanted them
back. PPL 430 is immediately adjacent to PPL 259, it is right in the heart of
the very active PNG forelands gas and gas condensate fairway, characterised by
very high success rates and in close proximity to over a TCF of discovered gas.
The Joint Venture have accepted the offer and expect the formal grant of the
instrument in the next few months."


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 planned exploration and evaluation activities, 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.


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