Eagle Energy Inc. Announces 2017 Annual Results and Reserves Information

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Eagle Energy Inc. Announces 2017 Annual Results and Reserves Information

Canada NewsWire

CALGARY, March 20, 2018 /CNW/ - (TSX: EGL):  Eagle Energy Inc. ("Eagle") is pleased to report its financial and operating results and its reserves information for the year ended December 31, 2017.  

Eagle Energy Inc. (CNW Group/Eagle Energy Inc.)

Reflecting on Eagle's performance in 2017, Wayne Wisniewski, President and Chief Executive Officer, commented, "Eagle closed out 2017 with strong reserve metrics, production and monthly operating costs within its guidance range and capital expenditures as planned, resulting in an increase to funds flow from operations excluding risk management gains (losses) by 49% year-over-year.  In addition, we improved the reserves replacement ratio this year from 1.8 times to 2.3 times."

Mr. Wisniewski continued, "We are pleased to report that Eagle's first horizontal well in North Texas continues to perform above expectations.  At present, we are moving a drilling rig to a second horizontal location over 10 miles from the first horizontal well.  Success on this second well would prove up additional leased acreage in the area.  A third horizontal well is planned for late 2018."

Eagle's reserves data and other oil and gas information is included in its Annual Information Form dated March 20, 2018 for the year ended December 31, 2017 ("AIF").  Eagle's audited consolidated annual financial statements, management's discussion and analysis and AIF have been filed with the securities regulators and are available online under Eagle's issuer profile on SEDAR at www.sedar.com and on Eagle's website at www.EagleEnergy.com.

This news release contains non-IFRS financial measures and statements that are forward-looking.  Investors should read the sections titled "Non-IFRS Financial Measures" and "Note about Forward-Looking Statements" near the end of this news release.  Figures within this news release are presented in Canadian dollars unless otherwise indicated.

Highlights for the Year ended December 31, 2017

Eagle achieved the following results in 2017:

  • Successfully drilled, completed and brought on production Eagle's first horizontal well on its North Texas property, with production results exceeding expectations.
  • Posted reserve replacement ratios of 274% and 227% on a proved plus probable and proved basis, respectively.
  • Reduced general and administrative costs by 25% year-over-year, including reductions in executive compensation.
  • Grew funds flow from operations excluding risk management gains (losses) by 49% year-over-year (from $9.7 million to $14.5 million).
  • Recorded 2017 funds flow from operations of $12.7 million.

Sale of Salt Flat Field in Texas and Reduction of Debt

  • On February 8, 2018, Eagle announced that it sold its oil and gas interests in the Salt Flat Field located in Caldwell County, Texas for approximately $33.3 million cash, subject to customary post-closing adjustments. 
  • Eagle used the net proceeds from the sale to reduce its term loan by 34% (from $US 58.2 million to $US 38.5 million) and to further fund its drilling program in North Texas.

2018 Outlook

Eagle remains focused on continuing to drill wells on its North Texas property due to its high netbacks and opportunities for meaningful growth.  This light oil development asset has approximately 25,000 net acres under lease and is the site of Eagle's first horizontal well in North Texas, which continues to perform above expectations.  At present, Eagle is moving a drilling rig to a second horizontal location over 10 miles from the first horizontal well.  Success on this second well would prove up additional leased acreage in the area.  A third horizontal well is planned for late 2018.

In light of our view of the growth opportunities in our North Texas asset, Eagle is seeking to reduce debt and corporate costs, including interest costs, in order to better position itself to capitalize this opportunity.  Alternatives for funding growth potentially include asset sales.  The February 8, 2018 sale of Eagle's assets in the Salt Flat field was an initial step towards Eagle achieving its overall goals.

The sale of the Salt Flat field reduced Eagle's total corporate production by approximately 1,200 barrels of oil equivalent ("boe") per day ("boe/d"). Following the sale of the Salt Flat field, an improved corporate decline rate of 14% lends itself to Eagle sustaining 2018 average corporate production at post-Salt Flat disposition levels with low capital expenditures.

The sale of the Salt Flat field also reduced Eagle's term loan by 34% (from $US 58.2 million to $US 38.5 million).  On a go-forward basis, and excluding one-time interest charges relating to the sale, the lower level of debt at current interest rates will result in reduced monthly interest costs.  In addition, general and administrative expenses are expected to decrease in 2018 as Eagle continues to focus on efficiencies and cost reduction.

To advise us on our plan, Eagle retained Tudor, Pickering, Holt & Co. Securities – Canada, ULC ("TPH") to act as a financial advisor to Eagle's board of directors (the "Board").  TPH is an independent investment bank with extensive financial and technical knowledge of the energy sector.  Eagle's Board and management are committed to acting in the best interests of Eagle and believe this will ultimately benefit Eagle.  While all transaction alternatives will be evaluated, the Board and management are encouraged by the potential for the North Texas assets to deliver attractive returns to Eagle with continued development. 

Eagle intends to disclose developments with respect to specific transactions, if any, only when they are approved by the Board, unless disclosure is otherwise necessary or appropriate.  Eagle does not intend to set a definite schedule to complete its plan and cautions that there are no assurances or guarantees that a specific transaction will result, or, if a transaction is undertaken, the terms or timing of such a transaction.

2017 Year-end Reserves Information

An independent evaluation of Eagle's U.S. reserves was conducted by Netherland, Sewell & Associates, Inc. and of Eagle's Canadian reserves by McDaniel & Associates Consultants Ltd.  These reserves evaluation reports are effective December 31, 2017 and were prepared in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities.  Details regarding Eagle's reserves and oil and gas assets are set forth in Eagle's AIF.

2017 Year-End Reserves Report – Highlights (based on Company Gross reserves)

  • Grew year-over-year proved reserves by 11% and proved plus probable reserves by 10%.
  • Achieved year-end proved plus probable reserves of 23.2 million boe (68% total proved, 47% proved developed producing).
  • Crude oil comprises 92% of proved developed producing reserves.
  • Posted reserve replacement ratios of 274% and 227% on a proved plus probable and proved basis, respectively. 
  • Increased the reserve life indices to 17.7 years and 12.1 years on a proved plus probable and proved basis, respectively.

The following tables summarize the independent reserves estimates and values of Eagle's reserves as at December 31, 2017. (For information regarding Eagle's reserves estimates and values excluding the Salt Flat properties, see "Reserves Data Excluding the Salt Flat Properties" in the AIF.)

Summary of Reserves



Canadian Operations

Company Gross(1)(2)

Reserves Categories

Crude Oil

Natural Gas
Liquids

Natural Gas

Total Oil
Equivalent 2017

Total Oil
Equivalent 2016


(Mbbls)

(Mbbls)

(MMcf)

(Mboe)

(Mboe)

Proved







Developed producing

6,966

125

3,311

7,643

7,976


Developed non-producing

61

19

458

156

150


Undeveloped                   

1,864

188

4,450

2,793

1,185

Total proved

8,891

332

8,219

10,593

9,311

Total probable

3,710

147

3,631

4,463

4,602

Total proved plus probable

12,601

479

11,850

15,055

13,914








 



US Operations

Company Gross(1)(2)

Reserves Categories

Crude Oil

Natural Gas
Liquids

Natural Gas

Total Oil
Equivalent 2017

Total Oil
Equivalent 2016


(Mbbls)

(Mbbls)

(MMcf)

(Mboe)

(Mboe)

Proved







Developed producing

2,987

73

513

3,145

2,959


Developed non-producing

304

16

146

344

429


Undeveloped  

1,429

128

1,211

1,759

1,475

Total proved

4,720

217

1,870

5,248

4,864

Total probable

2,348

211

1,996

2,892

2,132

Total proved plus probable

7,068

428

3,866

8,140

6,996








 



Total Company Operations

Company Gross(1)(2)

Reserves Categories

Crude Oil

Natural Gas
Liquids

Natural Gas

Total Oil
Equivalent 2017

Total Oil
Equivalent 2016


(Mbbls)

(Mbbls)

(MMcf)

(Mboe)

(Mboe)

Proved







Developed producing

9,953

198

3,824

10,789

10,935


Developed non-producing

365

35

604

500

579


Undeveloped

3,293

316

5,661

4,552

2,660

Total proved

13,611

549

10,089

15,841

14,175

Total probable

6,058

359

5,627

7,355

6,735

Total proved plus probable

19,669

907

15,716

23,196

20,910

Notes:

(1)

Company gross reserves are Eagle's total working interest share before the deduction of any royalties and exclude Eagle's royalty interests.

(2)

Totals may not add due to rounding.                   

 

Summary of Net Present Value of Future Net Revenue of Reserves



Canadian Operations

Net Present Value of Future Net Revenue

Before Income Taxes Discounted at (%/year)(1)(2)(3)

Reserves Category

0%

5%

10%

15%

20%

$CA

($000's)

($000's)

($000's)

($000's)

($000's)

Proved







Developed producing

221,014

134,582

94,758

73,285

60,145


Developed non-producing

2,068

1,673

1,303

1,017

806


Undeveloped

50,912

29,254

16,787

9,316

4,666

Total proved

273,994

165,509

112,847

83,618

65,617

Total probable

175,900

70,158

38,615

25,375

18,393

Total proved plus probable

449,894

235,668

151,462

108,992

84,009

 



US Operations

Net Present Value of Future Net Revenue

Before Income Taxes Discounted at (%/year)(1)(2)(3)

Reserves Category

0%

5%

10%

15%

20%

$US

($000's)

($000's)

($000's)

($000's)

($000's)

Proved







Developed producing

89,991

64,645

52,157

44,518

39,255


Developed non-producing

13,803

7,512

5,127

3,946

3,230


Undeveloped                    

36,149

26,298

19,808

15,267

11,949

Total proved

139,943

98,454

77,092

63,731

54,434

Total probable

89,247

58,752

42,434

32,318

25,503

Total proved plus probable

229,190

157,205

119,526

96,049

79,937

 



Total Company Operations

Net Present Value of Future Net Revenue

Before Income Taxes Discounted at (%/year)(1)(2)(3)

Reserves Category

0%

5%

10%

15%

20%

$CA

($000's)

($000's)

($000's)

($000's)

($000's)

Proved







Developed producing  

330,003

213,498

158,808

128,201

108,738


Developed non-producing

18,526

10,708

7,513

5,821

4,753


Undeveloped

93,880

60,542

40,364

27,488

18,883

Total proved

442,409

284,748

206,685

161,509

132,374

Total probable

281,944

140,205

89,362

64,135

49,061

Total proved plus probable

724,353

424,953

296,047

225,644

181,435

Notes:

(1)

It should not be assumed that the net present values of estimated future net revenue shown above are representative of the fair market value of the reserves. There is no assurance that the underlying price and costs assumptions will be attained and variances could be material. The recovery and estimates of reserves provided in this news release are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual reserves may be greater than or less than the estimates provided.

(2)

The U.S. operations numbers have been converted into Canadian dollars using the following foreign exchange rates: 2018 - $CA 1.00 equal to $US 0.790; 2019 - $CA 1.00 equal to $US 0.790; 2020- $CA 1.00 equal to $US 0.800; 2021 - $CA 1.00 equal to $US 0.825; 2022 and thereafter - $CA 1.00 equal to $US 0.850 (as per McDaniel & Associates Consultants Ltd. January 1, 2018 price deck forecast).         

(3)

Totals may not add due to rounding.

 

At a 10% discount factor, proved developed producing reserves comprise 54% (2016 – 57%) of the proved plus probable value and proved reserves account for 70% (2016 – 71%) of the proved plus probable value.

Future Development Costs ("FDC")

Total future development costs are estimated at $77.3 million for total proved and $95.3 million for total proved plus probable reserves.

Reserves Performance Ratios

Eagle achieved the following capital efficiency statistics: 





2017

2016


Proved

Proved plus
Probable

Proved

Proved plus
Probable

Reserves – Company Gross (Mboe)

15,841

23,196

14,175

20,910

Capital Expenditures ($M)






Exploration and Development ("E&D")(1)(8)

24,256

24,256

5,771

5,771


Acquisition (Disposition)(2)(8)                                                  

(105)

(105)

5,144

5,144


Total Capital Expenditures

24,151

24,151

10,915

10,915

Field Netbacks ($/boe)(3)






Current Year

21.05

21.05

16.12

16.12

Finding, Development and Acquisition ("FD&A") Costs(4)(8)






Change in Future Development Costs ("FDC") ($M)

35,619

33,051

11,219

15,691


Reserve Additions - Company Gross (Mboe)

2,950

3,569

2,515

3,717


FD&A Costs including changes in FDC ($/boe)(4)

20.30

16.06

8.80

7.16


FD&A Costs excluding changes in FDC ($/boe)(4)

8.22

6.80

4.34

2.94


Recycle Ratio(5)(8)

1.04

1.31

1.83

2.25

Reserves Replacement(6)(8)

227%

274%

184%

272%

Reserves Life Index (yrs)(7)(8)

12.1

17.7

10.4

15.3

Notes:


(1)

E&D is equal to expenditures for "exploration and evaluation" plus "oil and gas properties" from the Consolidated Cash Flow Statement.

(2)

Acquisition refers to the January 2016 acquisition of Maple Leaf Royalties Corp.  Eagle closed a minor disposition in 2017.  See "Overview of Eagle" in the management discussion and analysis and note 6 of the audited consolidated annual financial statements.

(3)

Field netbacks are calculated by subtracting royalties, operating expenses, and transportation and marketing expenses from revenues, which are from the Consolidated Statement of (Loss) Earnings and Comprehensive (Loss) Earnings.  Field netback is a non-IFRS financial measure.  See "Non-IFRS Financial Measures".

(4)

Eagle calculates FD&A costs incorporating both the costs and associated reserve additions related to E&D and acquisitions during the year.  Eagle believes that FD&A costs provide useful information to investors because it is a measure of the cost to locate new reserves and the ongoing expense of extracting petroleum throughout the lifecycle of the reserves.

(5)

Recycle ratio is calculated by dividing field netback per boe by FD&A costs including changes in FDC per boe.  Eagle believes that the recycle ratio provides useful information to investors because it is a measure of a company's production efficiency based on its FD&A costs. 

(6)

Reserves Replacement is calculated by dividing company gross reserve additions by working interest production for the year, which, in 2017, is based on average working interest production of 3,598 boe/d (2016 - 3,740 boe/d).

(7)

Reserves Life Index is calculated by dividing company gross reserves by working interest production for the year, which, in 2017, is based on average working interest production of 3,598 boe/d (2016 - 3,740 boe/d).

(8)

Eagle cautions readers as to the reliability of these capital efficiency statistics as these measures do not have any standardized meaning and may not be comparable to similar measures presented by other issuers.

 

Selected Annual Information

The following table shows selected information for Eagle's fiscal years ended December 31, 2017, December 31, 2016 and December 31, 2015.





Years ended December 31

2017

2016

2015

($000's except per share amounts and production)




Sales volumes – boe/d

3,821

3,972

3,358





Revenue, net of royalties

55,569

48,993

48,121

Field netback

29,354

23,437

23,659





Funds flow from operations

12,695

15,798

30,738


per share – basic and diluted

0.30

0.38

0.88





(Loss) earnings

(17,349)

9,559

(76,046)


per share – basic and diluted                        

(0.40)

0.23

(2.18)





Current assets

13,869

9,302

19,767

Current liabilities

13,715

74,595

9,397





Total assets

207,314

218,036

208,572

Total non-current liabilities

94,312

26,202

92,616

Shareholders' equity

99,287

117,239

106,559





Dividends declared

425

3,821

12,040


per issued share

0.01

0.09

0.35





Shares issued

43,302

42,452

34,863

 

Summary of Quarterly Results











Q4/2017

Q3/2017

Q2/2017

Q1/2017

Q4/2016

Q3/2016

Q2/2016

Q1/2016

($000's except for boe/d and per share amounts)









Sales volumes – boe/d

3,804

3,749

3,966

3,767

3,803

4,085

4,147

3,854










Revenue, net of royalties

14,725

12,459

14,167

14,218

13,891

12,854

13,149

9,099


per boe

42.08

36.12

39.25

41.95

39.72

34.20

34.84

25.94










Operating, transportation and marketing expenses

6,864

6,301

5,885

7,165

6,799

6,564

5,928

6,265


per boe                   

19.61

18.27

16.31

21.14

19.44

17.46

15.71

17.86










Field netback

7,861

6,158

8,282

7,053

7,092

6,290

7,221

2,834


per boe

22.47

17.85

22.94

20.81

20.28

16.74

19.13

8.08










Funds flow from operations

3,488

3,346

4,272

1,589

3,901

4,582

5,148

2,167


per boe

9.98

9.70

11.84

4.69

11.15

12.19

13.64

6.18


per share – basic

0.08

0.08

0.10

0.04

0.09

0.11

0.12

0.05


per share – diluted

0.08

0.07

0.10

0.04

0.09

0.11

0.12

0.05










(Loss) earnings

(14,293)

(4,711)

675

1,303

30,508

52

(9,288)

(11,713)


per share – basic

(0.34)

(0.11)

0.02

0.03

0.72

0.00

(0.23)

(0.29)


per share - diluted

(0.34)

(0.11)

0.02

0.03

0.72

0.00

(0.23)

(0.29)










Cash dividends declared

-

-

-

425

637

636

1,274

1,584


per issued share

0.00

0.00

0.00

0.01

0.015

0.015

0.03

0.04










Current assets

13,869

11,122

11,847

18,819

9,302

9,787

10,618

12,829

Current liabilities

13,715

8,042

6,599

11,474

74,595

72,387

75,035

5,472

Total assets

207,314

213,867

222,155

233,951

218,036

190,945

195,044

199,708

Total non-current liabilities

94,312

92,367

97,086

104,359

26,202

31,690

32,397

96,317

Shareholders' equity

99,287

113,458

118,470

118,118

117,239

86,868

87,612

97,919

Shares issued

43,302

43,302

42,857

42,857

42,452

42,452

42,452

42,452

 

For the three months ended December 31, 2017, sales volumes increased 1% from the third quarter as a result of new well production that was offset by natural decline and weather-related effects in October and December 2017 due to extreme cold.

Field netback increased 28% from the third quarter due a 19% increase in realized prices which was commensurate with an increase in the WTI benchmark price. The increase in field netback due to higher pricing was partially offset by a 9% increase in operating, transportation and marketing expenses in the fourth quarter of 2017 compared to the third quarter of 2017, due to well repairs and cold weather in Dixonville. 

Funds flow from operations increased 4% from the third quarter of 2017.  This was primarily due to 28% higher field netbacks which were offset by a risk management loss of $0.1 million in the fourth quarter, compared to a $0.5 million gain in the third quarter.

(Loss) earnings on a quarterly basis often do not move directionally or by the same amounts as funds flow from operations.  This is due to items of a non-cash nature that factor into the calculation of (loss) earnings, and those that are required to be fair valued at each quarter end.  Fourth quarter 2017 funds flow from operations increased by 4% from the third quarter of 2017, yet the fourth quarter net income was 203% less than the third quarter of 2017 primarily as a result of the impairment expense of $12.4 million, offset by a decrease in the unrealized risk management loss due to weaker forward commodity prices at the end of the fourth quarter.  The fourth quarter of 2017 includes an unrealized risk management loss of $0.4 million compared to an unrealized risk management loss of $2.0 million in the third quarter of 2017.

Total non-current liabilities increased slightly in the fourth quarter from the third quarter due to a higher foreign exchange rate applied to Eagle's U.S.-denominated debt. During the first quarter of 2017, Eagle retired all amounts drawn under its bank credit facility that was classified as a "current" liability and entered into a new four year term loan agreement which is classified as a "non-current" liability.  During the second quarter, Eagle prepaid $US 4.0 million of term loan principal.

Advisories

Non-IFRS Financial Measures

Statements throughout this news release make reference to the terms "field netback" and "funds flow from operations excluding risk management gains (losses)", which are non-IFRS financial measures that do not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other issuers. 

"Field netback" is calculated by subtracting royalties, operating expenses, and transportation and marketing expenses from revenues.  This method of calculating field netback is in accordance with the standards set out in the Canadian Oil and Gas Evaluation Handbook maintained by the Society of Petroleum Evaluation Engineers (Calgary Chapter).  Management believes that field netback provides useful information to investors and management because such a measure reflects the quality of production and the level of profitability. 

"Funds flow from operations excluding risk management gains (losses)" is calculated by adding back realized risk management gains (losses) to funds flow from operations. Management believes this measure provides useful information to investors and management because it shows what funds flow would have been if Eagle had not had any risk management contracts in place throughout the year.

Note about Forward-Looking Statements

Certain of the statements made and information contained in this news release are forward-looking statements and forward-looking information (collectively referred to as "forward-looking statements") within the meaning of Canadian securities laws.  All statements other than statements of historic fact are forward-looking statements.  Eagle cautions investors that important factors could cause Eagle's actual results to differ materially from those projected, or set out, in any forward-looking statements included in this news release.   

In particular, and without limitation, this news release contains forward-looking statements pertaining to the following:

  • Eagle's drilling plans on its North Texas property and its expectation that additional leased acreage would be proved up in the area if the second horizontal well is successful;
  • Eagle's intentions to reduce debt and corporate costs, including interest costs;
  • Eagle's expectations regarding alternatives for funding growth potentially including asset sales;
  • Eagle's expectations regarding its corporate decline rate of 14% lending itself to Eagle sustaining 2018 average corporate production at post-Salt Flat field disposition levels with low capital expenditures;
  • Eagle's expectations regarding reducing its interest costs and general and administrative expenses;
  • Eagle's intentions to review transaction alternatives;
  • Eagle's expectations regarding the potential for the North Texas assets to deliver attractive returns to Eagle with continued development;
  • Eagle's estimated volumes and values of reserves;
  • Future development costs associated with reserves; and
  • Anticipated crude oil, natural gas liquids and natural gas production weighting.

With respect to forward-looking statements contained in this news release, assumptions have been made regarding, among other things:

  • future crude oil, NGL and natural gas prices, differentials and weighting;
  • future foreign exchange and interest rates;
  • future production levels;
  • future capital expenditures and the ability of Eagle to obtain financing on acceptable terms;
  • not including capital required to pursue future acquisitions in the forecasted capital expenditures;
  • the ability of Eagle to complete new acquisitions;
  • future production estimates, which are based on the proposed drilling program with a success rate that, in turn, is based upon historical drilling success and an evaluation of the particular wells to be drilled, among other things; and
  • projected operating costs, which are estimated based on historical information and anticipated changes in the cost of equipment and services, among other things.

Eagle's actual results could differ materially from those anticipated in these forward-looking statements as a result of the risk factors set forth below and those in the AIF:

  • volatility of crude oil, NGL, and natural gas prices;
  • commodity supply and demand;
  • fluctuations in foreign exchange and interest rates;
  • inherent risks and changes in costs associated with the development of petroleum properties;
  • ultimate recoverability of reserves;
  • timing, results and costs of drilling and production activities;
  • availability and terms of financing and capital; and
  • new regulations and legislation that apply to the operations of Eagle and its subsidiaries.

Additional risks and uncertainties affecting Eagle are contained in the AIF under the heading "Risk Factors".

As a result of these risks, actual performance and financial results in 2018 may differ materially from any projections of future performance or results expressed or implied by these forward‐looking statements.  Eagle's production rates, operating and general and administrative costs, field netbacks, drilling program, capital budget, reserves and potential transactions are subject to change in light of ongoing results, prevailing economic circumstances, obtaining regulatory approvals, commodity prices, exchange rates, financing terms, and industry conditions and regulations.  New factors emerge from time to time, and it is not possible for management to predict all of these factors or to assess, in advance, the impact of each such factor on Eagle's business, or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement.

Undue reliance should not be placed on forward-looking statements, which are inherently uncertain, are based on estimates and assumptions, and are subject to known and unknown risks and uncertainties (both general and specific) that contribute to the possibility that the future events or circumstances contemplated by the forward-looking statements will not occur.  Although management believes that the expectations conveyed by the forward-looking statements are reasonable based on information available to it on the date the forward-looking statements were made, there can be no assurance that the plans, intentions or expectations upon which forward-looking statements are based will in fact be realized.  There are no assurances or guarantees that the transaction review process will result in a transaction or, if a transaction is undertaken, the terms or timing of such a transaction.  Actual results will differ, and the difference may be material and adverse to Eagle and its shareholders.  These statements speak only as of the date of this news release and may not be appropriate for other purposes.  Eagle does not undertake any obligation, except as required by applicable securities legislation, to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise.

Note Regarding Barrel of Oil Equivalency

This news release contains disclosure expressed as "boe" or "boe/d".  All oil and natural gas equivalency volumes have been derived using the conversion ratio of six thousand cubic feet ("Mcf") of natural gas to one barrel ("bbl") of oil.  Equivalency measures may be misleading, particularly if used in isolation.  A conversion ratio of 6 Mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the well head.  In addition, given that the value ratio based on the current price of oil as compared to natural gas is significantly different from the energy equivalent of six to one, utilizing a boe conversion ratio of 6 Mcf:1 bbl would be misleading as an indication of value.

About Eagle Energy Inc.

Eagle is an oil and gas corporation with shares listed for trading on the Toronto Stock Exchange under the symbol "EGL".

All material information about Eagle may be found on its website at www.EagleEnergy.com or under Eagle's issuer profile at www.sedar.com.

SOURCE Eagle Energy Inc.

View original content with multimedia: http://www.newswire.ca/en/releases/archive/March2018/20/c7376.html

Copyright CNW Group 2018

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