CALGARY, Aug. 11 /CNW/ - Eagle Rock Exploration Ltd ("Eagle Rock" or the
"Company", - TSXV: ERX) announces that is has entered into an arm's length
Purchase and Sale Agreement with West Isle Energy Inc.("West Isle" - CNSX:
WEI) to dispose of approximately 350 mcf/d of natural gas production and 2,560
acres of Alberta Crown leases in the Conrad area of southern Alberta for cash
consideration of $1,225,000. There are five natural gas wells producing from
the 2WS and Barons Sand. The transaction is subject to due diligence and is
expected to close August 19, 2009 with an effective date of July 1, 2009.
Proceeds will be applied to reduction of bank debt.
Eagle Rock production will be 425 bbls/d of crude oil and liquids and 150
mcf/d of natural gas after the completion of the divestment.
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".
Neither the TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements and forward-looking
information within the meaning of applicable securities laws. The use of any
of the words "expect", "anticipate", "continue", "estimate", "objective",
"ongoing", "may", "will", "project", "should", "believe", "plans", "intends"
and similar expressions are intended to identify forward-looking information
or statements. More particularly and without limitation, this news release
contains forward looking statements and information concerning Eagle Rock's
future operations and prospects. The forward-looking statements and
information are based on certain key expectations and assumptions made by
Eagle Rock, including expectations and assumptions concerning equipment and
crew availability, and joint venture partner financial capability. Although
Eagle Rock believes that the expectations and assumptions on which such
forward-looking statements and information are based are reasonable, undue
reliance should not be placed on the forward looking statements and
information because Eagle Rock can give no assurance that they will prove to
be correct. By its nature, such forward-looking information is subject to
various risks and uncertainties, which could cause Eagle Rock's actual results
and experience to differ materially from the anticipated results or
expectations expressed. These risks and uncertainties include, but are not
limited to, reservoir performance, labour, equipment and material costs,
access to capital markets, interest and currency exchange rates, and political
and economic conditions. Additional information on these and other factors is
available in continuous disclosure materials filed by Eagle Rock with Canadian
securities regulators. Readers are cautioned not to place undue reliance on
this forward-looking information, which is given as of the date it is
expressed in this news release or otherwise, and to not use future-oriented
information or financial outlooks for anything other than their intended
purpose. Eagle Rock undertakes no obligation to update publicly or revise any
forward-looking information, whether as a result of new information, future
events or otherwise, except as required by law.
For further information:
For further information: please visit the Company's website at:
www.eaglerockexploration.com or contact: Jim Silye, President and Chief
Executive Officer, Tel: (403) 269-4040, Fax: (403) 261-1978, E-mail: