Eagle Rock announces 2007 independent reserves evaluation

    CALGARY, March 26 /CNW/ - Eagle Rock Exploration Ltd. ("ERX", "Eagle
Rock" or the "Corporation") (TSXV:ERX) 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 (NI 51-101) for the year ended December 31, 2007. As ERX
plans to release its audited 2007 financial statements on or about April 9,
2008, certain financial estimates have been made to permit discussion of its
2007 capital program. Readers are advised that these financial estimates are
subject to audit and may be revised as necessary.

    Highlights of the reserve evaluation include:

      -  Net asset value (NAV) per common share increased by 47% from $0.53
         to $0.78 based on proved + probable (P+P) reserves discounted at 10%
         before income taxes (PV10)

      -  Net present value (PV10) of proved plus probable reserves, increased
         107% to $46.2 million compared with $22.3 million at Dec. 31, 2006.

      -  Total proved plus probable reserves grew to 1.84 million barrels of
         oil equivalent from 1.27 million barrels of oil equivalent in 2006,
         a 44% increase, with the growth coming about as a result of
         exploration, development activities and property acquisitions.

      -  Total proved reserves increased by 48% from 0.81 million barrels of
         oil equivalent to 1.2 million barrels of oil equivalent.

      -  Total proved reserves (PV10), amounted to $33.5 million an increase
         over Dec 31, 2006 of 124%.

      -  Proved reserve life index (RLI) is 6.0 years and proved plus
         probable RLI is 9.2 years based on estimated 2007 production of
         199.3 Mboe.

    These positive reserve results demonstrate the merits of ERX's strategic

      -  Focus on oil - 95% of current production.

      -  Leverage prior years' investments in infrastructure (battery,
         gathering system, water disposal) at Red Coulee, Alberta which
         reduces operating costs and maximizes netbacks - ERX averaged over
         $40 per bbl operating netbacks in each of Q3 and Q4 of 2007.

      -  Manage costs to ensure low capital investment - ERX drilled 14
         (12.84 net) wells in 2007 with average drilling costs under $330,000
         per well and total costs to drill, complete, equip and pipeline
         connect a well in the range of $600,000 to $700,000.

      -  Concentrate on properties with high working interest and operator
         status - 10 (10 net) wells were drilled at Red Coulee, Alberta in
         2007 with a 90% success rate and which propelled the reserve
         increase as proven + probable reserves at this property increased by
         92% to 757 Mboe from 394 Mboe and its PV10 value more than doubled
         as it increased to $23.4 million from $8.7 million.

      -  Seek strategic acquisitions - the reserves on the newly acquired
         Enchant property provided a PV10 value of $4.9 million for which ERX
         incurred acquisition costs of $3.1 million in a December 2007 share
         exchange to acquire Dragonheart Resources Ltd.

      -  Maintain a large drilling inventory - many locations remain at Red
         Coulee, the properties acquired at Enchant and Whitecourt as a
         result of the business combination with Dragonheart Resources Ltd,
         the recently announced farm in lands (freehold royalty of 25% and no
         crown royalty) at Jensen and Warner and 100% Saskatchewan lands for
         which ERX is the operator and for which recent drilling results are

    GLJ Petroleum Consultants (GLJ) prepared a reserve report, effective as
at December 31, 2007, (GLJ Report) evaluating the oil, natural gas an 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 detailed information contained in this
press release, more detailed information on a net basis (working interest
share after deduction or royalty obligations, plus royalty interests) and on a
gross basis (working interest before deduction or royalties without including
any royalty interests) will be included in the Annual Information Form of ERX
to be filed on SEDAR on or before April 29, 2008.

      -  The tables below disclose in the aggregate, the Corporation's gross
         and net proved and proved plus 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.

      -  "Net After Royalty" reserves are ERX's working interest (operating
         or non-operating) share after deduction of royalty obligations plus
         ERX's royalty interests in reserves.

      -  The 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. Other assumptions
         and qualifications relating to costs, prices and future production
         and other matters are summarized herein. 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

      -  On October 25, 2007, the Government of Alberta unveiled a new
         framework to calculate the royalties payable to it for conventional
         oil, natural gas and bitumen that are based on, among other things,
         price, production and depth of wells. This framework has a proposed
         effective date of January 1, 2009, however many material details of
         the revised royalty structure have yet to be finalized or announced.
         Further, the Government of Alberta has publicly indicated that it
         intends for the revised royalty structure to be reviewed and revised
         from time to time following the implementation of the framework
         contemplated by the October 25, 2007 announcements. There can be no
         assurance that the Government of Alberta or the Government of Canada
         will not adopt new royalty regimes which may render ERX's projects

      -  This reserves evaluation was conducted by GLJ in accordance with
         existing royalty regulations in the Province of Alberta, as the
         proposed new royalty framework has not yet been enacted as

    Summary of Reserves and Values

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

    Oil (Mbbls)
      Gross         690        156        227     1,073       571      1,644
      Net After
       Royalty      639        134        196       969       506      1,475

    Gas (MMcf)
      Gross         704          0          0       704       344      1,048
      Net After
       Royalty      575          0          0       575       262        837

     Gas Liquids
      Gross           9          0          0         9         9         18
      Net After
       Royalty        6          0          0         6         6         12

    Oil Equivalent
      Gross         816        156        227     1,200       637      1,837
      Net After
       Royalty      741        134        196     1,071       555      1,626

    Before Tax
     Value ($M)
     - Forecast
     Prices &
         0%      30,712      7,708      7,129    45,549    24,775     70,324
         5%      26,260      6,765      5,451    38,475    17,247     55,722
        10%      23,302      6,026      4,308    33,636    12,925     46,562
        15%      21,126      5,436      3,489    30,051    10,096     40,147

    The above summary of reserves and values was based on the GLJ December 31,
2007, forecast prices and costs assumptions, summarized in the following

    GLJ December 31, 2007 Forecast Prices and Costs

                      WTI Oil     Oil at    Medium Oil
          Exchange    Cushing,   Edmonton    at Comer   AECO/NIT    AB Plant
            Rate     Oklahoma    (40 API)    (29 API)     SPOT     Gate Spot
    Year  $US/$Cdn    $US/Bbl    $Cdn/Bbl    $Cdn/Bbl  $Cdn/mmbtu  $Cdn/mmbtu
    ----- --------   ---------   ---------   --------- ----------  ----------
    2008    1.000      92.00       91.10       79.26       6.75       6.53
    2009    1.000      88.00       87.10       75.78       7.55       7.33
    2010    1.000      84.00       83.10       72.30       7.60       7.37
    2011    1.000      82.00       81.10       70.56       7.60       7.37
    2012    1.000      82.00       81.10       70.56       7.60       7.37
    2013    1.000      82.00       81.10       70.56       7.60       7.37
    2014    1.000      82.00       81.10       70.56       7.80       7.57
    2015    1.000      82.00       81.10       70.56       7.97       7.74
    2016    1.000      82.02       81.12       70.57       8.14       7.91
    2017    1.000      83.66       82.76       72.00       8.31       8.08
    2018+   1.000     +2%/yr      +2%/yr      +2%/yr     +2%/yr     +2%/yr

    Reserves Reconciliation (Gross) - Using GLJ December 31, 2007 Forecast
    Prices and Costs (unaudited)
                                                                 Proved Plus
                                                   Total Proved     Probable

    Thousands of Barrels of Oil Equivalent (Mboe)
    Opening Balance, Gross Corporate Interest               809        1,273
    Technical                                                75          (63)
    Extensions and Discoveries                              296          457
    Acquisition                                             219          369
    Production                                             (199)        (199)
    Closing Balance, Gross Corporate Interest             1,200        1,837

    Estimated capital expenditures for exploration and development totalled
$13.1 million in 2007 and acquisition costs totalled $2.1 million with common
shares issued as consideration. The latter was a share exchange to acquire
Dragonheart Resources Ltd. in December 2007.

    Estimated Net Asset Value at December 31, 2007, Using GLJ Reserve Values
    at December 31, 2007 - Forecast Pricing and Costs(a)

    ($M except share amounts)
    Proved Plus Probable Reserve Value (Per GLJ Report) -PV10         46,562
    Undeveloped Land (Independent(*) valuation of 35,105
     Net Acres)(b)                                                     3,277
    Seismic (Internal estimate)                                        2,000
    Estimated Net Debt                                                (9,970)
    Estimated Net Assets                                              41,869
    Basic Shares Outstanding (000's)(c)                               54,001
    Estimated Net Asset Value per Basic and Fully Diluted Share(c)     $0.78
    (a) Financial information based on ERX's 2007 financial statements
    (b) By Independent Land Evaluation Inc.
    (c) All 4,166,333 stock options of ERX outstanding as at December 31,
        2007 were out of the money

    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 Eagle Rock's website at

    Forward-looking information

    Certain information contained in this news release constitutes
forwardlooking 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
    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, Tel: (403) 269-4040, Fax: (403) 261-1978, E-mail: jimsilye@eagler.ca

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