CALGARY, ALBERTA--(Marketwire - Oct. 1, 2012) - Eaglewood Energy Inc. ("Eaglewood") (TSX VENTURE:EWD) is pleased to announce that it has signed a memorandum of understanding ("MOU") with Trafigura PTE LTD ("Trafigura"). Under the terms of the MOU the two companies will work together with a view to jointly finance, construct and operate a condensate processing facility and pipeline in the Western Province of Papua New Guinea (PNG). The processing facility will be located adjacent to the Ubuntu gas condensate discovery in Eaglewood operated PRL 28 and the pipeline will deliver condensate to Drimdenasuk on the Fly River where it will be exported by river tanker.
The Ubuntu discovery lies in close proximity to other gas condensate discoveries at Elevala and Ketu. The proposed processing facility and pipeline will have the capacity to process and transport condensate from these fields, with further ability for expansion to handle any additional gas condensate discovered on Eaglewood's PPL 259. Eaglewood has lodged Processing Facility (APPFL 3) and Pipeline (APL 9) Licence Applications, which were gazetted by the PNG Department of Petroleum and Energy on June 8, 2012, and are currently being processed.
Completion of binding agreements are subject to regulatory approvals, including the grant by the PNG Minister of Petroleum and Energy of the processing facility and pipeline licences and Trafigura and Eaglewood agreeing to mutually acceptable terms on the ownership and financing of the pipeline and condensate off-take terms.
Commenting on the MOU CEO Brad Hurtubise said: "We are very pleased to have reached this milestone and to be working with one of the world's largest commodity trading companies. Trafigura has significant global experience in the financing and ownership of oil and gas infrastructure and in the trading, shipping and storage of hydrocarbon products. We value their experience and capability and look forward to forming a lasting working relationship with them. Since we discovered the Ubuntu field in 2011 we have been working towards the earliest possible commercialisation of the field, and this MOU is a significant step towards achieving this goal and kick-starting oil and gas production in the Western Province of Papua new Guinea."
Eaglewood is a junior Canadian oil and gas exploration company that trades on the TSX Venture Exchange under the symbol "EWD".
Trafigura is one of the world's leading international commodity traders, specializing in the oil, minerals and metals markets, with 81 offices in 54 countries in Europe, Africa, Asia, Australia, and North, Central and South America.
Trafigura's primary trading businesses are the supply and transport of crude oil, petroleum products, renewable energies, coal, refined metals, ferrous and non-ferrous ores and concentrates. It is the world's second largest independent non-ferrous trading company and the third largest independent oil trader.
Founded in 1993, the company is owned by its founding shareholders and senior management. It has achieved substantial growth in recent years, growing turnover from US$18 billion in 2004 to US$122 billion in 2011. For more information visit www.trafigura.com.
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 changes in project parameters as plans continue to be refined; future prices of oil and gas; accidents, labour disputes and other risks of the gas and gas condensate 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 approval, construction, operation and capacity of a condensate processing facility and pipeline; participation in any such facility and pipeline by other unrelated parties, and potential discoveries on Eaglewood licences. 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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