Eagle Energy Inc EGRGF

Second Quarter 2016 Results

[LAMBO]

Highlights for the Three Months ended June 30, 2016 Achieved quarterly production in excess of 4,100 barrels of oil equivalent per day ("boe/d") for the first time in the history of Eagle, and expects 2016 average production to be at the upper end of the guidance range. Reduced per-boe operating costs (inclusive of transportation) by 12% from the first quarter of 2016 and 16% from the prior year's comparative quarter. Assumed operatorship of the Dixonville properties (where Eagle holds a 50% working interest) on June 1, 2016, thereby allowing Eagle to commence pipeline upgrades in order to bring "behind-pipe" production on-stream; upgrades which the former operator, being in receivership, was not capitalized to complete. Eagle expects to add 200 to 250 boe/d of production (gross to the field) by the end of 2016. Increased second quarter 2016 production to 4,147 boe/d, more than doubled second quarter funds flow from operations of $5.1 million when compared to the first quarter of 2016 and expects a year end 2016 debt to trailing funds flow from operations ratio of 3.7 times. Successfully drilled the second well of its two well drilling program at Salt Flat in Texas, with costs coming in considerably under budget. The first well came on production in April and the second well at the end of June, with the drilling program exceeding expectations from both a cost control and productivity perspective.