2010-04-30-2010-04-29-2009-12-31

Joint venture to buy deep rights to 4,330 acres in Shelby Co., TX.

Late in the fourth quarter, Ellora Energy Inc. finalized an agreement with Chesapeake Energy Corp. covering approximately 4,330 deep net acres in Shelby County, Texas. Under the terms of the agreement, Ellora received a cash payment together with a five-well carry for a retained 35% working interest. There is a continuous drilling provision of 180 days with the first well expected to spud in the second quarter of 2010. Importantly, the agreement also resulted in the settlement of lawsuits between Ellora, Chesapeake, and local landowners.

T. Scott Martin, chairman and chief executive, commented, "We are very pleased to have resolved these lawsuits expeditiously and in a manner that provides Ellora shareholders value for our Haynesville acreage and a definitive plan to develop not only the acreage that was involved in the suit but additional acreage we hold in the area that otherwise would have been at risk of expiration. Combined with the joint ventures with EOG, we have succeeded in retaining acreage and obtaining ongoing commitments to timely development of our Haynesville/Bossier acreage. In 2010 we expect to participate in at least three to five more joint venture Haynesville wells drilled on our acreage."