Eagle Oil Confirms Cancellation of LOI

Eagle Oil has agreed to a mutual cancellation of the Letter Of Intent (LOI) for the field development of W. H. Siler Lease in East Texas by the proposed operating partner as announced in December 2010. The proposed partner was unable to make a determination of whether or not to begin work on the field as they had outlined in the original plan. At this time, the Company is completing the negotiations with another operating partner to get the field back into full operation. The Company expects to be ready with a new agreement within the next 10 days.