LITTLETON, Colo., Jan. 8, 2013 /PRNewswire/ -- American Eagle
Energy Corporation (OTCQX: AMZG; "American Eagle" or the "Company")
is pleased to announce the sale of 4,000,000 shares of its
restricted common stock to Power Energy Holdings LLC. The
purchase price was $1.00 per share
and the transaction closed on January
4, 2013. The per-share sale price represents an
approximate 22% premium to the December 31,
2012 closing price of American Eagle's common
stock.
In two other separate agreements, American Eagle granted options
to Power Energy Partners LP, an affiliate of Power Energy Holdings
LLC, to purchase 10% of either or both of the two Spyglass Property
acquisitions, one of which was announced on January 3 and the other of which was announced
yesterday. Each option expires on March 29, 2013, and each contains the same
pricing and proportionate ownership terms and conditions of the
acquisitions to which the Company is subject. If Power Energy
Partners exercises each option, American Eagle will retain 90% of
the assets that it acquired on December 28,
2012 (and announced on January 3,
2013), and 45% of the total assets acquired on January 4, 2013 (and announced yesterday), with
the remainder being owned by the Company's Spyglass Property area
non-operating joint venture partner, who acquired that 45% interest
in the January 4, 2013,
transaction.
"I am delighted that Power Energy has invested directly into
American Eagle, especially at a price that represents a premium to
the market. Their actions both strengthen our balance sheet
and underscore management's belief that our stock has been
undervalued for a significant period of time," stated Brad Colby, American Eagle's President.
Colby continued, "We are also pleased that Power Energy's
acceptance of the 10% acquisition options reinforces our valuation
of the two recently announced acquisitions in a group of derisked
properties."
The shares of common stock have not been registered under the
Securities Act of 1933. Accordingly, they may not be offered
or sold in the United States,
except pursuant to an effective registration statement or an
applicable exemption from the registration requirements of the
Securities Act. This press release shall not constitute an
offer to sell or the solicitation of an offer to buy the common
stock. The private placement was made by American Eagle
without a selling agent and the opportunity to participate in the
private placement was available only to Power Energy Holdings, an
accredited investor. This press release is being issued
pursuant to and in accordance with Rule 135c under the Securities
Act.
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