LITTLETON, Colo., Jan. 7, 2013 /PRNewswire/ -- American Eagle
Energy Corporation (OTCQX: AMZG; "American Eagle" or the "Company")
is pleased to announce the acquisition of additional working
interest in several of the Company's operated properties in the
Spyglass area from SM Energy Company. The purchase price of
$9,100,000 includes SM Energy's
working interest in four different spacing units operated by
American Eagle. This transaction, which closed on
January 4, 2013 and has an economic
effective date of September 1, 2012,
is the second of the two pending acquisitions referenced by the
Company in the January 2, 2013
announcement of its financing agreement with Macquarie Bank
Ltd. The Company will initially own 55% of the acquired
interest and its Spyglass Property joint venture partner will own
the remaining 45%.
The four spacing units affected by the transaction are located
in T163N-R101W and T164N – R101W, Divide
County, North Dakota and include 6 producing wells with the
acquired working interests ranging from approximately 5% to over
34%. Total gross production from these wells is approximately
1975 BOPD, with the associated working interest volumes equaling
approximately 375 BOPD. A seventh well has been drilled in
the subject area, is awaiting completion, and is expected to be on
production by mid-February. American Eagle currently projects
that an eighth well will be drilled, completed, and on production
by the end of March, 2013. A full development scenario for
each of these spacing units is expected to include up to four wells
completed in the Three Forks Formation and up to four additional
wells completed in the Middle Bakken zone. Based on a
third-party engineering report, the estimated net present value of
the 8 active locations, discounted at 10% (NPV10), is approximately
$18,000,000.
"These two acquisitions of producing properties in North Dakota will help bolster American
Eagle's position in the area and enable it to extend the remarkable
growth we have experienced in 2012 into the upcoming year,"
stated Brad Colby, American
Eagle's President. Colby continued, "We believe these
acquisitions are a prudent use of capital enabling us to
concentrate our interest in a group of de-risked properties."
About American Eagle Energy Corporation:
American Eagle Energy Corporation is engaged in the exploration
and production of petroleum and natural gas in North America.
Currently, American Eagle is focused primarily on exploiting
unconventional resource plays within the Bakken and Three Forks
formations. The Company operated under the name Eternal
Energy Corp. until December 2011 when
it changed its name to American Eagle Energy Corporation upon its
acquisition of American Eagle Energy Inc., another oil and gas
company engaged in a similar business with which the Company shared
certain properties and prospects.
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 American Eagle Energy Corporation.
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. Persons are encouraged to read
American Eagle Energy Corporation's Annual Report on Form 10-K for
the year ended December 31, 2011, and
Quarterly Reports on Form 10-Q for the quarters ended March 31, June 30,
and September 30, 2012, all as filed
with the Securities and Exchange Commission for meaningful
cautionary language in respect of forward-looking statements in
this press release. Interested persons are able to obtain
free copies of filings containing information about the Company at
the SEC's internet site (http://www.sec.gov). American Eagle
Energy Corporation does not assume any obligation to update any of
these forward-looking statements.
SOURCE American Eagle Energy Corporation