2010-04-30-2010-02-22-2010-02-22

Entered joint ventures to purchase 70% working interest in 7,100 acres in East Texas prospective for Haynesville shale.

During the third quarter of 2009, Ellora Energy Inc. entered into a joint venture agreement with EOG Resources Inc. covering approximately 1,900 acres in East Texas. Under the terms of the agreement, Ellora retained a 30% working interest, an approximate 4% overriding royalty interest and received additional consideration comprised of cash and well carries. The first Haynesville well under this agreement was spud in the third quarter. This agreement follows a joint venture signed with EOG in the second quarter of 2009 that covered approximately 5,200 net acres, representing substantially all of Ellora's Haynesville acreage in Louisiana. Under that joint venture, EOG agreed to carry Ellora on multiple Haynesville wells and paid additional cash consideration for a 70% working interest. The first Haynesville well under that joint venture also spud in the third quarter. Drilling under the joint ventures allowed Ellora to retain Haynesville acreage that was otherwise facing near-term expiration.