NEWS
May 23, 2006
North Sea Exploration Well Planned
LITTLETON, Colo., May 23, 2006 (PRIMEZONE) -- Eternal Energy Corp. (OTCBB:EERG) announced that it entered into a letter agreement with International Frontier Resources Corporation ("IFR"), Palace Exploration Company Limited ("Palace"), Oilexco Incorporated ("Oilexco"), and Challenger Minerals (North Sea) Limited ("CMNS") under which Oilexco and Eternal Energy will drill a test well to evaluate the Laurel Valley prospect located in Quad 14 in the Outer Moray Firth area of the UK North Sea. Two prospective Jurassic oil targets and the Lower Cretaceous section identified on a 255 square kilometer 3D seismic survey will be evaluated by the he Laurel Valley #1 well. Eternal Energy will fund 12.50% of the drilling costs.
Drilling operations, using the Sedco 712 rig currently under contract to Oilexco, will commence on or before December 31, 2006. After drilling, working interests in the blocks will be held by Oilexco -- 45.00% (operator), Palace & Challenger -- 26.00%, International Frontier -- 10.4375%, and Eternal Energy -- 9.1875%. The agreement is subject to approval of the UK Department of Trade and Industry and execution of definitive farm-in agreements.
Brad Colby, Eternal Energy's President, said the company is pleased to partner with Oilexco in its North Sea exploration. Oilexco has gained a reputation as one of the most innovative and aggressive exploration companies in the UK sector of the North Sea.