Eagle Rock Exploration Reports on 2008 Independent Reserves Evaluation & Operations Update



    TSXV: ERX

    CALGARY, April 9 /CNW/ - Eagle Rock Exploration Ltd. ("Eagle Rock", "ERX"
or the "Corporation") announces the results of its independent reserve
evaluation prepared by GLJ Petroleum Consultants Ltd. in accordance with
National Instrument 51-101 - Standards of Disclosure for Oil and Gas
activities (NI51-101) for the year ended December 31, 2008.

    
    Highlights

      -  Proved + probable (P+P) reserves increased 38% to 2.531 million bbls
         of oil equivalent ("Boe") at December 31, 2008 from 1.837 million
         Boe at the end of 2007. Crude oil and liquids comprises of 88% of
         proved + probable reserves reflecting Eagle Rock's oil focus.

      -  Total proved reserves increased 23% to 1.477 million Boe at
         December 31, 2008 from 1.200 million Boe at the end of 2007. Crude
         oil and liquids comprises 85% of total proved reserves again
         demonstrating Eagle Rock's oil focus.

      -  The Red Coulee, AB property showed the most significant increases:

         -  P+P reserves increased by 72% to 1.305 million boe from 0.727
            million boe

         -  Total Proved reserves increased by 51% to 0.671 million boe from
            0.443 million boe

      -  December 31, 2008 P+P reserves included reserves from newly acquired
         properties at Beverley, Saskatchewan and Conrad, Alberta with a net
         present value at 10% (PV10) of $5.774 million. These properties were
         the major assets of three private companies acquired December 15,
         2009. The costs to acquire these reserves were $17.08/boe (P+P) and
         $19.21 per total proven boe.

      -  Proved + probable reserves life index ("RLI") is 14.2 years and
         proved RLI is 10.3 years based on 2008 production of 178,240 boe.

    Reserves Report

    GLJ Petroleum Consultants (GLJ) prepared a reserve report dated March 20,
2009, with an effective date of December 31, 2008, (GLJ Report). This report
evaluated the oil, natural gas and natural gas liquids reserves of Eagle Rock
in accordance with the definitions, standards and procedures contained in NI
51-101 and the Canadian Oil and Gas Evaluation Handbook. In addition to the
information contained in this press release, more detailed information will be
provided in the Annual Information Form to be filed on SEDAR (www.sedar.com)
on or about April 24, 2009.

    -  The tables below disclose in the aggregate, the Corporation's gross
       proved and proved + probable reserves and Net Present Value (NPV) as
       estimated in the GLJ Report. These estimates were calculated using
       forecast prices and costs.

    -  "Forecast prices and costs" means future prices and costs used by GLJ
       in the GLJ Report that are generally accepted as representing a
       reasonable outlook of the future, or fixed or currently determinable
       future prices or costs to which the Corporation is bound.

    -  "Gross" reserves are ERX's working interest (operating or
       non-operating) share before deduction of royalties and without
       including any royalty interests of ERX.

    -  The net present value ("NPV") of future net revenue attributable to
       ERX's reserves is stated without provision for interest costs and
       general and administrative costs, but after providing for estimated
       royalties, production costs, development costs, other income, future
       capital expenditures, and well abandonment costs for only those wells
       assigned reserves by GLJ. It should not be assumed that the
       undiscounted or discounted net present value of future net revenue
       attributable to ERX's reserves estimated by GLJ represent the fair
       market value of those reserves. The estimates of reserves and future
       net revenue for individual properties may not reflect the same
       confidence level as estimates of reserve and future net revenue for
       all properties, due to effects of aggregations. The recovery and
       reserve estimates of ERX's oil, natural gas and natural gas liquids
       reserves provided herein are estimates only and there is no guarantee
       that the estimated reserves will be recovered. Actual reserves may be
       greater than or less than the estimates provided herein.

    -  Production information is commonly reported in units of barrel of oil
       equivalent ("boe") which may be misleading, particularly if used in
       isolation. For purposes of computing such units, barrel of oil
       equivalent amounts have been calculated using an energy equivalence
       conversion rate of six thousand cubic feet of natural gas to one
       barrel of oil (6:1). The conversion ratio of 6:1 is based on an energy
       equivalency conversion method, which is primarily applicable at the
       burner tip and does not represent value equivalence at the wellhead.


         Table 1 - Summary of Reserves and Values - Forecast Prices
                       and Costs as of January 1, 2009

                                                                       Total
    Gross                    Proved                                   Proved
    Marketable    Proved        Non-      Proved   Total     Total      plus
    Reserves   Producing  Producing  Undeveloped  Proved  Probable  Probable

    Crude Oil
     & Liquids
     (Mbbl)          947         48          257   1,253       984     2,236

    Gas (MMcf)     1,349          0            0   1,349       420     1,769

    Oil
     Equivalent
     (Mbbl)        1,172         48          257   1,477     1,054     2,531

    Net Present Value Before Tax ($M)

      0%          40,259      1,117       10,590  51,966    45,579    97,545
      5%          32,044        920        7,556  40,519    26,234    66,754
      10%         26,806        765        5,531  33,102    16,432    49,534
      15%         23,150        642        4,130  27,922    10,870    38,792


         Table 2 - Reserves Reconciliation, (Gross) - Forecast Prices
                       and Costs as of January 1, 2009

    Thousands of Barrels                                      Total Proved +
     of Oil Equivalent (Mboe)                  Total Proved         Probable

    Opening Balance, Gross Corporate
     Interest, December 31, 2007                      1,200            1,837

    Technical Revisions                                  29              (67)

    Drilling Extensions                                 502            1,084

    Acquisition                                         269              320

    Dispositions                                       (345)            (465)

    Production                                         (178)            (178)
    -------------------------------------------------------------------------
    Closing Balance, Gross Corporate
     Interest, December 31, 2008                       1477             2531
    -------------------------------------------------------------------------


               Table 3 - GLJ Forecast Prices at January 1, 2009

                                WTI Oil         Light
                                Cushing,   Oil at Edmonton     AECO-C
               Exchange Rate   Oklahoma        (40 API)         SPOT

        Year     $US/$Cdn       $US/Bbl        $Cdn/Bbl      $Cdn/mmbtu

        2009       0.825          57.50          68.61          7.58

        2010       0.850          68.00          78.94          7.94

        2011       0.875          74.00          83.54          8.34

        2012       0.925          85.00          90.92          8.70

        2013       0.950          92.01          95.91          8.95

        2014       0.950          93.85          97.84          9.14

        2015       0.950          95.73          99.82          9.34

        2016+      0.950         +2%/yr         +2%/yr        +2%/yr
    


    Operational Update

    ERX's current total production is approximately 600 boe/d which is 85%
crude oil & liquids and 15% natural gas. Capital activity in Q1 09 was limited
to bringing on production wells spudded in Q4 08 and upgrades to the Beverley
battery acquired in December 2008. Cash flow from operations in 2009 will be
applied to reducing debt until such time as commodity prices support new
drilling.
    ERX has identified approximately 25 oil drilling locations, with Red
Coulee, Alberta to be the primary focus. This levers the past investment in
facilities in this area and the additional geological and geophysical
information now available.
    Sayer Energy Advisors has been retained to market ERX's properties at
Conrad, AB, Coutts, AB and Enchant, AB. The proceeds from any such
dispositions will be used to reduce debt. In the GLJ report the three
properties combined are attributed a proved + probable reserve value of $11.7
million using a discount rate of 10% (PV10) and the January 1, 2009 GLJ
forecast prices.

    About Eagle Rock

    Eagle Rock Exploration Ltd. is a publicly traded energy corporation
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.

    Forward-looking information

    Certain information contained in this news release constitutes forward
looking information or statements including, without limitation, information
and statements respecting: (a) the anticipated effects of the Government of
Alberta's new royalty framework announced on October 25, 2007; and the effects
of any other royalties (such as freehold or overriding royalties) payable in
the future; (b) anticipated capital expenditures, production forecasts,
production and reserves additions from ERX's historical and future capital
programs or acquisitions, operating expenses, G&A, royalties, expected timing
of the tie-in of wells, expected timing of the receipt of regulatory approvals
and expected timing of the completion of facilities projects.
    Statements relating to "reserves" and "resources" are forward-looking
information as they involve the implied assessment, based on certain estimates
and assumptions that the reserves and resources described exist in the
quantities predicted or estimated and can profitably be produced in the
future.
    Forward-looking information and statements are often, but not always,
identified by the use of words such as "anticipate", "seek", "believe",
"expect", "hope", "plan", "intend", "forecast", "target", "project",
"guidance", "may", "might", "will", "should", "could", "estimate", "predict"
or similar words or expressions suggesting future outcomes or language
suggesting an outlook. 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. In accordance with NI 51-101, 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.

    
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.
    

    %SEDAR: 00019108E




For further information:

For further information: Jim Silye, President and Chief Executive
Officer, Steven J. Glover, Vice-President, Finance, and Chief Financial
Officer, TEL: (403) 269-4040, FAX: (403) 261-1978, Email: Jim Silye
(jimsilye@eagler.ca) OR Steven J. Glover (sglover@eagler.ca)

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EAGLE ROCK EXPLORATION LTD.

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