Aug. 11, 2009 (Baystreet.ca) --
CALGARY -- Eagle Rock Exploration Ltd (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. >>
Forward-Looking Statements
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.
SOURCE: Eagle Rock Exploration Ltd.
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: jimsilye@eagler.ca
