American Eagle Energy Provides Spyglass Operations Update
LITTLETON, Colo., Aug. 28, 2012 /PRNewswire/ -- American Eagle Energy Corporation (OTCQX: AMZG; "American Eagle" or the "Company") is pleased to provide an operations update and further well results for its Spyglass Project in Divide County, North Dakota. A high level of development work in the Middle Bakken and Three Forks Formations has continued with at least four operators, American Eagle, SM Energy, Samson Resources and Crescent Point, each having at least one rig active in the area.
The recent activity has continued to expand the development to the west and south, as well as initiating infill drilling on several spacing units. SM Energy has obtained regulatory approval to drill up to four Three Forks wells per spacing unit and has just released production information on two of their first 3 infill wells to their highly successful Torgeson 14-19HN well, bordering the Spyglass outline to the south. These two infill wells have reported 30 day averages of 380 and 626 barrels of oil per day compared with the 505 barrels of oil per day results of the initial well in the same spacing unit. Samson Resources has received approval to drill up to seven wells per spacing unit with four in the Three Forks and three targeting the Middle Bakken. They have begun infill operations in their Nomad spacing unit as noted below. American Eagle's recently announced expansion of its financing agreement (8/21/2012) will lead to its contracting a second drilling rig to begin infill drilling work on its operated Spyglass spacing units in September.
Brad Colby, American Eagle's president stated, "We are extremely pleased with the progress of both our operated and non-operated programs in Spyglass. The well costs and production results continue to show good improvement thus providing further encouragement for us to keep moving ahead aggressively with our development plans for the field."
Specific operational results for wells in which American Eagle owns a working interest include:
- American Eagle Coplan 1-3 (AMZG Working Interest = 35.62%) – Completed in July after stimulation with a 26-stage fracture treatment. Gross Cumulative Production for the first 30 days online: 9,659 BO; 6,712 MCF; 12,006 BW; average of 321 BOPD
- SM Energy Adams 1-18 (AMZG Working Interest = 18.52%) – Cleaned out and put on pump in June after stimulation with a 20-stage fracture treatment. Gross Cumulative Production for 31 days in July: 16,532 BO; 16,770 MCF; 16,965 BW; average of 533 BOPD
- SM Energy Gulbranson 2-1H (AMZG Working Interest = 11.37%) – Put on flow in late June after stimulation with a 26-stage fracture treatment. Gross Cumulative Production for 31 days in July: 18,338 BO; 17,961 MCF; 17,360 BW; average of 591 BOPD
- American Eagle drilled and cased the Anton 3-4 (AMZG Working Interest = 45.74%) in July and just finished drilling and casing the Elizabeth 3-4N (AMZG Working Interest = 39.26%) from the same drilling pad. The Elizabeth well was drilled with the newly contracted rig, which resulted in an approximate 25% improvement in the drill time compared to our previous best well. These wells are both designed for 30-stage fracture treatments and will be treated back-to-back starting this week. The Elizabeth 3-4N will utilize an innovative completion system that should result in over $200,000 savings in the stimulation of the well.
- American Eagle has spudded the Silas 3-2N (AMZG Working Interest = 25.22%) as its first Middle Bakken test. That well will be followed with the drilling of the Haagenson 3-2 from the same drill pad, which will be the first Three Forks Formation infill well offsetting the Cody 15-11.
- Samson Resources drilled and cased the Nomad 0607-5H and Nomad 0607-6TFH (AMZG Working Interest = 14.41%) and are prepping them for completion in early September. One well is targeting the Middle Bakken zone and the second well is an infill well targeting the Three Forks zone offsetting the original Nomad 6-7 well. These two wells are part of the approved order allowing up to seven increased density wells in the spacing unit.
- SM Energy is expected to spud the August 4-26HN (AMZG Working Interest = 5.96%) targeting the Three Forks formation in late August. It is a south offset to the American Eagle Cody 15-11 well.
About American Eagle Energy Corporation:
American Eagle Energy Corporation 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 for the purpose of acquiring, exploring, and developing natural resource properties located in North America. The Company specializes in exploiting unconventional resource plays within the Bakken and Three Forks formations. Prior to December 1, 2011, the Company operated under the name Eternal Energy Corp. The Company changed its name to American Eagle Energy Corporation in December 2011 upon the completion of 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 and June 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