Eaglewood Energy Inc. (TSX VENTURE:EWD) ("Eaglewood") is pleased to announce the final payment of USD $4.9 million for the sale of 20% of its 30% equity interest in PPL 260 in the PNG highlands to Esso PNG Exploration Limited ("Esso"), a subsidiary of ExxonMobil.

The total purchase price for the 20% interest was USD $7mm, with USD $2.1mm paid on execution of the agreement and the remaining USD $4.9mm payable on satisfaction of certain conditions, which has now occurred.

CEO Brad Hurtubise commented "We are very pleased to have completed this transaction which provides additional capital to re-deploy in our other licenses. We will begin acquiring seismic on PPL 259 on April 1 and expect to be in a position to drill our second well on that license in the second half of 2012. With previously announced farmouts effectively funding our next phase of seismic and our next well, this additional capital gives us the ability to better pursue the multiple opportunities in and around our licenses including expanding our PPL 259 seismic program to high-grade additional prospects, shooting additional seismic on PPL 257 and funding any PRL 4 unitisation outcomes".

Forward-Looking Statements

This document may contain "forward-looking statements" within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. 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.

Forward-looking statements relate to future events or future performance and reflect management of Eaglewood's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. 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 resources; possible variations in ore reserves, grade or recovery rates; 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 pertaining to the future payments to be made by Talisman and the completion of the farm-out. 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.

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.

Contacts: Eaglewood Energy Inc. Brad Hurtubise President and CEO (403) 264-6944bhurtubise@eaglewoodenergy.ca Eaglewood Energy Inc. Diana Moes CFOdmoes@eaglewoodenergy.ca