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Check this out $113mil for 3175 acres!!!!!!!!!

April 30, 2012 15:34 ET

Eagle Energy Trust Announces Acquisition of Producing Light Oil Assets in the Permian Basin, Texas as Well as Bought Deal Trust Unit Financing

CALGARY, ALBERTA--(Marketwire - April 30, 2012) -

Eagle Energy Trust (the "Trust") (TSX:EGL.UN) is pleased to announce that its operating subsidiary, Eagle Energy Acquisitions LP ("Eagle"), has entered into a binding agreement to acquire a 92.5% interest in producing petroleum properties in the Permian Basin, located near Midland, Texas (the "Acquired Assets"), for a purchase price of US$113.4 million, subject to closing adjustments (the "Acquisition"). The Acquired Assets consist of 3,175 gross (2,937 net) acres of land with total estimated proved plus probable reserves of approximately 10.2 million barrels of oil equivalent ("boe") as at March 31, 2012. Working interest production from the Acquired Assets in March 2012 was approximately 600 boe per day ("boe/d"), which Eagle expects to increase to approximately 1,000 boe/d by the end of 2012 through a planned drilling program. Oil and natural gas liquids represent approximately 88% of the total proved plus probable reserves, and natural gas represents the remaining 12%.

"We are pleased to add a second, high quality, oil-focused field to the Eagle portfolio," said Richard Clark, President and CEO. "This Acquisition further demonstrates Eagle's ability to successfully transact in the United States, adding a second, high netback, cash flow producing asset, with a large amount of low risk drilling remaining. The Acquired Assets maintain Eagle's focus on oil production and enhance the long-term sustainability of Eagle's asset base. These long-life, high netback assets represent a solid, low risk entry-point for Eagle into one of the most prolific and well-established oil weighted basins in North America. We believe that the Permian Basin will form a new strong core area of future operations for Eagle. It is one of North America's most productive oil-weighted basins and has demonstrated, on a recurring basis, the addition of new reserves horizons and enhanced exploitation of existing horizons in the multi-zone stacked pay resource."