American Eagle Energy Provides Financial Results for First Quarter
LITTLETON, Colo., May 21, 2013 /PRNewswire/ -- American Eagle Energy Corporation (OTCQX:AMZG; "American Eagle" or the "Company") files Form 10-Q and provides results of operations for the first quarter of 2013.
- Revenues from oil and gas sales for the period ended March 31, 2013 were $7,628,707, an increase of 522% from the $1,225,579 reported for same period in 2012.
- Wells in the United States accounted for 95.2% of first quarter 2013 sales.
- Net income of $355,347 for the quarter ended March 31, 2013 compared to a net loss of ($358,335) for the same quarter in 2012.
- Income per share for the quarter was $0.01 compared to a loss of ($0.01) for the same quarter in 2012.
- The Company reported a non-cash impairment expense of $1,525,027 on their Canadian oil and gas property ("Hardy") due to lower than anticipated production volumes.
- Excluding the non-cash impairment expense recognized on the Hardy Property, operating income for the quarter ending March 31, 2013 would have been $3,352,686 compared to an operating loss of ($656,466) for the three month period ending March 31, 2012.
- Net oil and gas revenues, calculated as oil and gas revenues less oil and gas production costs, rose to $5,980,173 for the first quarter of 2013 compared to $819,023 for the same quarter in 2012.
- Earnings before interest, taxes, depreciation and amortization (EBITDA) for the three months ending March 31, 2013 was $4,665,729 compared to a loss of ($338,985) for the same quarter in 2012.
As of March 31, 2013, the Company has successfully drilled and completed 13 wells in its Spyglass Project in Divide County, ND in which the Company owns an average working interest of approximately 41% and is the operator. An additional six operated wells have been drilled and cased and are awaiting completion. All six of these wells are expected to be completed and put on production in the 2nd quarter. The Company has also elected to participate as a non-operated working interest partner in 60 wells in Divide County, ND. As of the end of the first quarter, 46 of these are producing wells. The Company has working interests ranging from 0.03% to 28.22%.
The Company operates three wells and participates as a non-operating working interest partner in a fourth well located in Southeastern Saskatchewan, the Hardy Property. Although these wells generate a positive cash flow, the overall financial results are significantly less favorable than those in our Spyglass Project, which has resulted in a non-cash impairment charge for this quarter of $1,525,027. Accordingly the Company will continue to evaluate the performance of the Hardy wells.
Mr. Brad Colby, President of American Eagle, said, "We recently reported a very successful year for 2012 and it's a pleasure to follow up on that with the results we've generated in the first quarter of 2013. Even with the impairment charge against our Hardy Property in Canada, we were able to deliver significant quarter-over-quarter growth in production, revenue, operating income, net income and stockholder equity. With six wells awaiting completion and one drilling rig working full time in Spyglass, we expect this trend of meaningful growth in all important categories to continue."
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.
Brad Colby, President
American Eagle Energy Corp.
SOURCE American Eagle Energy Corporation
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