CALGARY, ALBERTA--(Marketwired - April 14, 2014) - Eaglewood Energy Inc. (TSX VENTURE:EWD) ("Eaglewood") is pleased to announce that Horizon Oil ("Horizon"), as Operator of Petroleum Retention Licence 4 ("PRL 4") has received notification from the Hon. Nixon P. Duban, the Petroleum Minister of Papua New Guinea, of the decision of the PNG National Executive Council ("NEC") to approve the Stanley gas condensate development project ("Stanley Project"), in Western Province. Horizon has further advised that the PRL 4 licencees (wholly owned subsidiaries of Horizon, Talisman Energy, Mitsubishi Corporation and Osaka Gas) have been offered and have accepted a petroleum development licence (PDL 10) and pipeline licence (PL 10) in respect of the Stanley Project. Horizon expects that the Minister will grant the PRL 4 licencees Stanley PDL 10 and PL 10 within two weeks of the execution of the Stanley Gas Agreement, expected to occur at a formal ceremony on 17 April 2014.
As previously announced, PDL 10 will be varied to include the part of the Stanley accumulation that is in block 1622 of PPL 259, which Eaglewood operates and has a 45% participating interest. A unitization agreement has previously been signed between the PRL 4 and PPL 259 joint ventures and the determination of the participating interests in Stanley of each of the parties is underway, with a final determination of those interests expected prior to the end of Q2, 2014.
Eaglewood's CEO Brad Hurtubise commented: "Although it has taken longer than we initially expected, we are pleased that PDL 10 and PL 10 has been offered and accepted and we can get on with finalising Eaglewood's participation in the Stanley Project, which is expected to begin producing condensate and cash flow in late 2015. Our participation in the project will give us a share of proven and probable reserves in PDL 10 to complement our share of the contingent resource in PRL 28. With our share of the gas production, we will be working hard to complete a domestic gas sales agreement, which will support the funding we will require to pay our portion of the costs already incurred on the Stanley Project and fund our costs going forward as the project develops. We anticipate the initial sunk cost payment to be required in late Q3, 2014."
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 changes in project parameters as plans continue to be refined; future prices of oil and gas; accidents, labour disputes and other risks of the gas and gas condensate 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 estimated costs, production, reserve estimates and cash flow related to the Stanley Project. 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.
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