CALGARY, March 10 /CNW/ - Eagle Rock Exploration ("ERX" or "Eagle Rock")
(TSXV:ERX) announces that it has entered into a farm-in agreement on freehold
lands in the Jensen-Warner areas of Southern Alberta.
Under the terms of the farm-in, Eagle Rock will re-enter and re-complete
three wells in the Jensen area by June 30, 2008. Eagle Rock will earn a
100% interest in the section of land on which each well is located, and will
have a rolling option to drill and earn 100% in adjacent sections of land on
which similar wells are located. Eagle Rock commenced operations on the first
of these three wells in March, 2008, with the Mississippian zones being
targeted for re-completion. The three wells targeted for recompletion were
drilled in 1995, with one well testing at approximately 150 boe/d. Due to a
lack of infrastructure in the area at that time, no further testing was
conducted and the wells were shut-in.
Provided Eagle Rock completes its first well by August 30, 2008, the
farm-in agreement also provides Eagle Rock with the opportunity to earn
100% interest on each section of land on which it completes a new well in the
adjacent Warner area. Eagle Rock intends to target the Mississippian trend in
the Warner area for its exploration drill, with drilling planned to commence
in the second quarter of 2008.
Eagle Rock will be operator of the re-completed wells and on any new
wells in the Jensen-Warner areas carried out under the terms of this farm-in
agreement. The agreement encompasses freehold lands and therefore production
from this area will not be subject to the higher crown royalties proposed by
the Alberta Government for 2009. The freehold royalty rate is 25%.
"High commodity prices combined with recent infrastructure developments
locally have improved the economics of exploration and development in the
Jensen-Warner areas," commented Jim Silye, President and CEO of Eagle Rock. He
explained that "this farm-in provides Eagle Rock with a relatively low risk
opportunity to substantially expand its operations in Southern Alberta."
Eagle Rock Exploration has appointed BryanMillsIradesso (BMIR), a Calgary
and Toronto-based investor relations firm, to help communicate with the
investment community. The TSX Venture Exchange requires that the details of
the arrangement between Eagle Rock and BMIR be disclosed. Eagle Rock retained
BMIR beginning on March 1, 2008 at a rate of $4,000 per month for a minimum of
eight months, after which the contract will continue indefinitely until either
party gives 30 days' notice. The key individual from BMIR who will work with
Eagle Rock is Stephanie Mesher, Vice President, Investor Relations and a
former investment advisor.
About Eagle Rock
Eagle Rock 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's common shares trade on the TSX Venture Exchange
under the symbol "ERX".
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
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.
For further information:
For further information: please visit us at www.eaglerockexploration.com
or contact: Jim Silye, President and Chief Executive Officer, Tel: (403)
269-4040, Fax: (403) 261-1978, E-mail: email@example.com