American Eagle Energy Provides Spyglass Operations Update
LITTLETON, Colo., Feb. 21, 2013 /PRNewswire/ -- American Eagle Energy Corporation (OTCQX: AMZG; "American Eagle" or the "Company") is pleased to provide an operational update on its Spyglass Project in Divide County, North Dakota. The Company has been active on both the operated and non-operated fronts during the first part of 2013.
The Company completed three wells during January, including two infill Three Forks wells and its second Middle Bakken well within the project. The first well in this group, the Violet 3-3, was completed with a lateral length of 10,124 feet in the Three Forks zone and a 31-stage stimulation treatment. The well was put on pump and has averaged 466 barrels of oil per day (BOPD) over the first five days of production, which is consistent with the original wells in the area. The other two wells, the Muzzy 15-33S and Christianson Bros 15-33N, were drilled from a common surface location with lateral lengths of 9,787 feet and 5,420 feet, respectively. Both wells have been stimulated, cleaned out and are expected to begin pumping operations later this week. American Eagle owns an average working interest of approximately 41% in each of these three wells.
American Eagle has drilled and cased four additional wells that began stimulation operations this week. These wells are all targeting the Three Forks zone, with two of the wells being infill locations and two of the wells developing step-out spacing units, including the first well in the Company's West Spyglass Prospect area. All four of these wells are expected to commence production by the end of March. The Company owns an average working interest of approximately 29% in each of these four wells.
American Eagle has participated in 20 non-operated wells, with an average working interest of approximately 5% in each, during the last two months. These wells, operated by Samson Resources, SM Energy Company and Mountainview Energy Ltd., are in various stages of drilling, completion and production. The wells are a combination of Middle Bakken and Three Forks wells, many of which are included in aggressive infill programs that are being developed from multi-well pads, which are designed to increase the drilling and completion efficiency of the programs. All of these wells are projected to be placed on production by the end of March. The Company estimates that these wells could increase its oil production rate by approximately 400 BOPD.
"The high activity level that occurred within the Spyglass Property area during the second half of last year is continuing into early 2013," commented Brad Colby, American Eagle's President, "Despite some weather related obstacles, we expect to exceed our internal production goals for the first quarter of the year. The Three Forks wells continue to exhibit good, consistent rates, and the various Middle Bakken wells are yielding improved results as the operators continue to tailor their completion techniques for the zone."
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