& & CALGARY, ALBERTA — Eaglewood Energy Inc. (TSX VENTURE:EWD) ("Eaglewood") is pleased to announce that it has executed farmout agreements with Ketu Petroleum Ltd, a wholly owned subsidiary of Horizon Oil Ltd (a company listed on the Australian Stock Exchange) ("Horizon") and Mega Fortune International Ltd ("Mega"), currently a 10% equity participant in Eaglewood's PPL 259 and PRL 28. Each farmout is for 25% of Eaglewood's 90% equity interest in PPL 259 in the Western Province of PNG. In the event of completion of both transactions, Eaglewood will continue to own a 40% equity interest in PPL 259 and retain operatorship.&

Horizon is the operator of PRL 4 which contains the Stanley discovery and is adjacent to the western end of PPL-259. Horizon is also the operator of PRL 21 which contains the Elevala and Ketu discoveries and is adjacent the Ubuntu-1 discovery (PRL-28) drilled by Eaglewood last year. Mega was already an equity participant in PPL 259 and as such had a right to acquire an additional 25% on the same terms as the Horizon transaction.

To earn their respective 25% interests, each of Horizon and Mega will pay to Eaglewood USD $15.4 million, comprised of USD $2.68 million upon completion of the agreement for Eaglewood's sunk costs, and in addition to funding their 25% equity position, each will pay USD $1.375 million to cover Eaglewood's expenses in the upcoming PPL 259 seismic program and USD $5 million to cover Englewood's expenses in the next well to be drilled in PPL 259.

Both transactions are conditional upon receipt of regulatory approvals and other customary conditions.

CEO Brad Hurtubise commented "We are very pleased to have received our PPL 259 license extension and be able to execute both these agreements. Following our success on Ubuntu in PRL 28, Mega has proposed to increase its' equity in the PPL 259 licence and we will also upon completion have Horizon as a new partner in PPL 259. These transactions give us significant additional capital to deploy in PPL 259 plus all the benefits of having a new and experienced partner actively operating in the immediate area. We will be acquiring additional seismic in Q1 to refine our next PPL 259 drilling target, which we expect to drill in the second half of 2012 and we will now be fully funded to execute this seismic and drilling program."

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 actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of oil and gas; accidents, labour disputes and other risks of the mining 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 the acquisition of new seismic data and Eaglewood's expected drilling activities in 2012. 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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