Eternal Energy Corp. Announces the Recompletion of Its Hardy Well and Provides Stock Repurchase Program Update

LITTLETON, Colo., Sept. 23 /PRNewswire-FirstCall/ -- Eternal Energy Corp. (OTC Bulletin Board: EERG; "Eternal", or the "Company") announced that it, along with its 50% working interest partner, American Eagle Energy Inc. has finished the mechanical workover of the Hardy 2D7-9-3D2-16-4-21 well, located in southeastern Saskatchewan, and returned the well to production.  

The objective of the workover was to isolate the Bakken producing zone from a water source above the Bakken formation that has been hampering the oil production rates.  The mechanical isolation was completed and the well was returned to pump last week.  The well is currently producing approximately 40 barrels of oil per day and is showing signs of an improved oil cut trend.    

"We are pleased to announce that we have returned the Hardy well to production and that the mechanical issues associated with the well have been successfully mitigated," stated Brad Colby, Eternal's President and CEO.  "The return of the Hardy well to production was an important first step in our current drilling program, in that it creates a new revenue stream for the Company as well as provides a platform on which to build our future drilling initiatives"  

In August 2010, the partners submitted a horizontal well license application for an offset location in the targeted drilling area.  The companies anticipate drilling a second well within the Hardy Prospect during the fourth quarter of 2010 or the first quarter of 2011.    

The Company also announced that, as of the close of business on September 22, 2010, it has repurchased and retired 3,568,000 shares of its outstanding common stock at an average purchase price of $0.067 per share pursuant to its stock repurchase program.  SEC rules limit the number of shares that the Company can repurchase on any given day.  On March 29, 2010, the Company's Board of Directors authorized expending up to US$500,000 to repurchase shares on the open market.  As of September 17, 2010, the Company has repurchased and retired approximately 8% of the shares that were outstanding at the time the stock repurchase program was initiated.  

About Eternal Energy Corp.:

Eternal Energy Corp. is an oil and gas company engaged in the exploration of petroleum and natural gas.  The company was incorporated in Nevada on July 25, 2003 to engage in the acquisition, exploration, and development of natural resource properties.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements.  Certain information included in this press release contains statements that are forward-looking, such as statements relating to the future anticipated direction of the industry, plans for future expansion, various business development activities, planned capital expenditures, future funding sources, anticipated sales growth, potential contracts, and/or aspects of litigation.  Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future, and, accordingly, such results may differ from those expressed in any forward-looking statements made by, or on behalf of, Eternal Energy Corp.  These risks and uncertainties include, but are not limited to, those relating to development and expansion activities, dependence on existing management, financing activities, and domestic and global economic conditions.  The company assumes no obligation to update any of these forward-looking statements.

SOURCE Eternal Energy Corp.