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Eternal Energy Corp. (EERG) – Continuing Development of Oil and Gas Properties

Eternal Energy Corp. is an oil and gas company trading on NASDAQ’s OTCBB. Headquartered in Littleton, Colorado, they acquire, explore, develop, and produce petroleum and natural gas properties in the United States. The company focuses on high-potential frontier exploration and they have a current market capitalization of $7.17 million. The company previously went by the name Golden Hope Resources Corp.

Founded in July of 2003, Eternal Energy owns interest in the West Ranch Field in Jackson County, Texas. They have also entered into participation agreements for other oil and gas exploration projects. These are the Big Sand Spring Valley Prospect and Cherry Creek Project, both in Nye County, Nevada.

Eternal Energy owns 75 percent of the southwest extension of the West Ranch Field in Jackson County, Texas. They also control exclusive access to a proprietary/patented downhole gas/water separation and re-injection process. Numerous suspended or abandoned gas wells in the Canadian Western Sedimentary Basin may be suitable for the use of this technology. Through their wholly-owned Canadian subsidiary, EERG Energy ULC, Eternal will drill two gas wells in conjunction with Heritage Natural Gas this year, and in 2009, to confirm the economic viability of the downhole gas/water separation and re-injection process technology for natural gas production.

EERG owns a five percent overriding royalty interest in 345,212 acres leased to Ryland Oil Corporation. Ryland is an oil company with significant potential reserves in Western Canada and the Northern United States. EERG also has a ten-percent working interest in 11,152 acres of Ryland’s Northern United Sates properties. So far, EERG has drilled six wells, earning themselves $1.5-million in spud fees. The company also owns 52,957 acres in a Mississippian-aged, fractured shale project in the Great Basin of Nevada. This is the Mississippian-Chainman Shale Project at the aforementioned Big Sand Spring Valley in the Great Basin of Nevada.

On June 23, Eternal Energy Corp. announced they had sold their 50-percent working interest in 5,950.80 net acres of oil and gas leases on lands in Eastern Utah and Western Colorado to Roadrunner Oil & Gas, Inc. (USA). Eternal retains an overriding royalty on production from the properties. Eternal will also receive an overriding royalty on any additional oil and gas leases acquired by Roadrunner Oil & Gas, Inc. (USA) in an area of mutual interest covering approximately 2,765,000 acres in Eastern Utah and approximately 806,000 acres in Western Colorado.

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