Eagle Energy Inc. announced that it has entered into a forbearance agreement with its lenders. Due to the persistent low WTI prices and high Canadian oil differentials, Eagle has advised the administrative agent and lenders (collectively, the "Lenders") under the loan and security agreement dated March 13, 2017 among Eagle, its subsidiaries and the Lenders, as amended (the "Loan Agreement") that Eagle may not meet one or more of its financial covenants at year end 2018. In anticipation of a potential event of default occurring at year end, Eagle has entered into a limited forbearance agreement (the "Forbearance Agreement") with the Lenders. Under the Forbearance Agreement, the Lenders have agreed to forbear from exercising their rights and remedies arising if Eagle fails to meet any of its financial covenants as of December 31, 2018 until January 31, 2019 (the "Forbearance Period") so long as no termination event has occurred during the Forbearance Period. A "termination event" means, in summary, a breach of a representation, warranty, covenant or term under the Forbearance Agreement, a default under the Loan Agreement other than the failure to meet the financial covenants as of December 31, 2018, or any event or condition has occurred after the effective date of the Forbearance Agreement which has a material adverse effect as defined in the Loan Agreement and determined by the Lenders. Eagle continues to work with its financial advisors to investigate, evaluate and consider possible asset sales and restructuring alternatives available to Eagle. Eagle does not intend to comment further regarding this review process unless a specific transaction or other alternative is approved by the board of directors of Eagle, the review process is concluded or it is otherwise determined that further disclosure is appropriate or required by law.