Eagle Rock Announces Second Quarter Results and Operational Update

Eagle Rock Exploration Ltd. ("ERX" or the "Company") (TSX VENTURE:ERX) is
pleased to announce it has filed on SEDAR its unaudited financial statements for
the second quarter ended June 30, 2007. The Company also filed its initial
Annual Information Form.


Selected Quarterly Information

The following table provides a summary of key financial results.



000's except                Q2       Q1       Q4       Q3       Q2       Q1
 production and per       2007     2007     2006     2006     2006     2006
 share amounts         $ 000's  $ 000's  $ 000's  $ 000's  $ 000's  $ 000's
Average daily
 production - boed         549      563      464      202      225       82
Petroleum and natural
 gas revenue             2,887    2,652    2,127    1,086    1,249      340
Total revenues net of
 royalties               2,421    2,232    1,905      832      892      294
Cash flow from
 operations (note 1)     1,174      808      540      345      515       (1)
Loss for the period       (412)    (785)    (626)     (63)     (46)    (211)
Basic and diluted loss
 per share              (0.010)  (0.020)  (0.020)  (0.010)  (0.002)  (0.015)
Capital expenditures,
 net                     4,193    2,308    7,904    1,924    1,993    1,068
Total assets            31,966   28,952   29,929   29,230    4,636    6,802
Working capital
 surplus (deficiency)   (9,222)  (6,203)  (4,710)   2,650    7,042    1,282
Shareholders' equity    19,094   19,394   21,949   22,654   12,109    5,211
Common shares
 outstanding - basic    39,662   39,662   39,636   38,686   26,021   20,501
Common shares
 outstanding - 100%
 dilution               43,339   43,059   43,057   41,801   28,131   22,356
Weighted average
 common shares
 outstanding            39,662   39,662   39,285   28,086   21,415   13,910

Note 1: Cash flow from operations excludes the changes in non cash working
        capital.



2nd Quarter Highlights

Cash flow from operations increased from $808,000 in Q1 2007 to $1,174,000, a
45% increase in Q2 2007. Revenues increased from $2,652,000 in Q1 2007 to
$2,887,000 in Q2 2007, a 9% increase which is the result of higher oil prices.


Compared to Q2 2006, cash flow from operations increased from $515,000 to
$1,174,000 in Q2 2007, a 127% increase. Revenues also showed a big improvement
increasing from $1,249,000 in Q2 2006 to $2,887,000 in Q2 2007, a 131% increase.


Average daily production of 225 BOE's/d in Q2 2006 increased to 549 BOE's/d in
Q2 2007, a 144% increase year over year.


In June 2006 the Company issued common shares for net proceeds of $7.2 million
resulting in a working capital position at June 30, 2006 of $7 million compared
to a working capital deficiency of $9.2 million at June 30, 2007. The 2006 funds
were utilized to build the Red Coulee infrastructure (battery, gathering system,
water disposal wells) and to drill the Antelope Lake development wells in 2006.
Subsequent to these capital investments, ERX has utilized its cash flow and
credit facilities to finance capital expenditures. Future capital expenditures
will be limited to funds available from operations, the remaining credit
facility and proceeds from equity issues should the Company choose that option.


Coutts/Red Coulee, Alberta

Second quarter drilling results moved the Company's Rundle oil play in Southern
Alberta from a pilot project into the development phase. In June, four wells
were drilled with a 100% success ratio resulting in three oil wells and one Bow
Island gas well. ERX holds a 100% working interest (WI) in these properties.


Antelope Lake, SW Saskatchewan

During Q2 of 2007, ERX participated in the successful drilling of two gross oil
wells (0.82 net). Total gross production from the Antelope Lake field during the
quarter stood at approximately 900 bbls/d (300 net). 


Operational Update

In August the Company continued with follow up drilling at Coutts/Red Coulee
(02-1-9, T1 R17 W4). This well has been completed and is currently producing
approximately 60 bbls/d.


Over-all current production is approximately 650 bbls/d.

During the remainder of 2007, the Company plans to drill an additional three to
four development wells as part of its development program at its Coutts/Red
Coulee and SW Saskatchewan properties.


The Company also announces that Mr. Jean-Guy Lambert resigned from the Board of
Directors for personal reasons.


Eagle Rock Exploration Ltd. is a publicly traded energy company involved in the
exploration and development of low to medium risk oil and gas properties in
Western Canada. 


Eagle Rock Exploration Ltd. Trades on the TSX Venture Exchange under the symbol ERX.

For more information please visit us at www.eaglerockexploration.com.

Forward-looking Information

This press release includes forward-looking statements and assumptions
respecting ERX's strategies, future operations, expected financial results,
financial sources, commodity prices, costs of production and quantum of oil and
natural gas reserves and discusses certain issues, risks and uncertainties that
can be expected to impact on any of such matters. By their nature,
forward-looking statements are subject to numerous risks and uncertainties that
can significantly affect future results. Actual future results may differ
materially from those assumed or described in such forward-looking statements as
a result of the impact of issues, risks and uncertainties whether described
herein or not, which ERX may not be able to control. The reader is therefore
cautioned not to place undue reliance on such forward-looking statements. The
forward-looking statements contained in this news release are made as of the
date hereof and ERX undertakes no obligation to update publicly or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise, except as required by applicable securities laws. The
forward-looking statements contained in this news release are expressly
qualified by this cautionary statement. In addition, the term BOE or BOE's may
be misleading, particularly if used in isolation. A BOE (barrel of oil
equivalent) conversion ratio of 6 Mcf per one (1) BOE is based on an energy
equivalency conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead.