American Eagle Energy Provides Operations Update
Reports First Successful Middle Bakken Well in Spyglass Area
LITTLETON, Colo., March 25, 2013 /PRNewswire/ — American Eagle Energy Corporation (OTCQX:AMZG; “American Eagle” or the “Company”) provides an update on the results of operations in its Spyglass Property, located in Divide County, ND for the first quarter of 2013.
The Company continued to operate two drilling rigs to develop and extend its Spyglass Property. A total of six wells were drilled, completed and brought on production during the first quarter of 2013. Three of these wells were infill drilling locations which are producing from the Three Forks Formation. Two other wells, in addition to being successful producers, also extend the Company’s Three Forks productive acreage several sections to the west and south, providing multiple new infill drilling locations. The final well was completed in the Middle Bakken Formation and confirms the high commercial potential for the Middle Bakken in the area.
Four additional wells were drilled and cased during the first quarter of 2013 and are awaiting stimulation operations, which are expected to begin on March 29(th). Once these four wells are completed and on production, the Company will have an interest in 65 producing wells located in North Dakota, of which 18 are operated by the Company.
The six newly completed wells had a combined gross initial production rate of approximately 2,600 bopd (barrels of oil per day), over 900 bopd net to the Company’s interest. Wells completed in the Three Forks Formation continue to exhibit consistent production results with average initial producing rates ranging from 360 bopd to 490 bopd. The Christianson Bros. 15-33 well, which was drilled and completed in the Middle Bakken Formation, features a 5,420′ lateral, which is shorter than usual because it is drilled across a correctional section adjacent to the Canadian border. The well was placed on pump in early March after a 31 stage hydraulic fracture stimulation was completed, and has produced an average of 503 bopd, 220 mcfpd (thousand cubic feet per day) and 417 bwpd (barrels of water per day) for the first week of production. The high production rates combined with the good oilcut confirms the good reservoir quality that was mapped by the Company in the area.
American Eagle is planning to release one drilling rig but will continue to drill with one rig during the second quarter of the year. This should allow the Company to minimize non-productive time during the spring break-up period and allow for building an inventory of permitted locations in the Spyglass and West Spyglass areas. Projected drilling plans for the remainder of 2013 call for picking up a second rig early in the third quarter and possibly adding a third rig later in the year.
Mr. Brad Colby, President of American Eagle said, “These early well results support our three-prong development strategy for the year. The first leg is to continue infill drilling in the Three Forks Formation, the second phase is to add significant Middle Bakken reserves in the area, and the goal of the final phase is the extend our productive acreage into the West Spyglass area.” Mr. Colby went on to say, “I am pleased with the consistent production results from the Three Forks Formation across our acreage as well as our growing ability to drill the wells quicker and for less cost, a trend we hope to continue. Extending the potential productive area is especially important because it adds a number of relatively low-risk infill drilling locations to our inventory. In addition, having a commercial producer in the Middle Bakken is extremely vital because it results in a significant increase in the total number of producing wells that we can drill on acreage that is already under our control.”
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.
CONTACT: Brad Colby, President Brad Holmes American Eagle Energy EnergyIR (303) 798-5235 (713) 654-4009 B_holmes@att.net
SOURCE American Eagle Energy Inc.