Eaglewood Energy Inc. has closed a transaction with Transeuro Energy Corp. which for a cash settlement of USD 800,000 eliminates the option held by Transeuro to back into 10% of Eaglewood's licences in Papua New Guinea by paying 10% of the gross costs incurred to drill the first three wells (the "Option"). Eaglewood has drilled two wells to date and anticipates drilling the third well in Q4 this year.

CEO Brad Hurtubise commented "We are pleased to have eliminated the back-in option, as its existence increased the complexity of structuring farm-outs and other transactions on our licenses. Our ability to deal with our assets on an unencumbered basis is attractive to us and Transeuro's operational focus is now on its Ukraine and Canadian properties. The Papua New Guinea back-in right was no longer a core project for them".

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