American Eagle Energy Updates Spyglass Project in North Dakota
LITTLETON, Colo., July 10, 2012 /PRNewswire/ -- American Eagle Energy Corporation (OTCBB: AMZG; "American Eagle") is pleased to provide additional drilling and production information on its Spyglass Bakken and Three Forks Project in Divide County, North Dakota.
The first two company-operated Three Forks wells in the Spyglass area have been placed on pump, connected to surface facilities and have recorded initial 30-day oil production rates. The Christianson 15-12 and Cody 15-11 have reported average production rates of 479 bopd and 438 bopd, respectively, for a total average production of approximately 917 bopd.
American Eagle's third operated Spyglass Three Forks well is the Coplan 1-3-163-101 ("Coplan 1-3"), which is located approximately one mile west of the Cody 15-11. In June, the Coplan 1-3 was drilled, completed and stimulated. The well has begun flowback of the load fluid and is starting to produce oil and gas. Early results indicate similar productivity to the Cody and Christianson wells. American Eagle expects to move a rig onto the well this week to clean out the lateral section and connect the well to production facilities.
Continuing the extension of American Eagle's development to the west and north, the Company has moved the Coplan 1-3 drilling rig approximately 1.5 miles to the west to a two-well pad. The Anton 3-4-163-101 ("Anton 3-4") is currently drilling in the horizontal section to the south to develop Sections 4 and 9 of T163N-101W. After drilling and casing the Anton 3-4, the rig is scheduled to immediately skid over to drill the Elizabeth 3-4N-163-101 well, which will be directed north into T164N-R101W and develop correctional Sections 28 and 33. These smaller correctional spacing units of approximately 780 acres along the US-Canadian border will require only about 6000 foot long laterals to develop compared to the 9300 foot long laterals drilled in the normal 1280 acre spacing units.
Two wells in the Spyglass area operated by SM Energy, in which American Eagle owns significant working interests, were put on production in late June. The Adams 2-18H, in which American Eagle owns approximately 19% working interest, was stimulated in late May and was cleaned out and put on production in late June with a first week average production rate of more than 600 bopd. The Gulbranson 2-1H, in which American Eagle owns approximately 13% working interest, was also put on pump in late June with its first week of production averaging approximately 515 bopd. Additionally, American Eagle has elected to participate for its 14% working interest in the drilling of two infill wells to the Nomad 6-7-163-99 well operated by Samson Resources. The Nomad 6-7 well was completed this spring as one of the best wells in the area with an initial 30-day average oil rate of 912 bopd. These two infill wells are the first increased density wells operated by Samson in the area and follow the initial increased density drilling performed by SM Energy in the spacing unit directly to the south.
American Eagle has received approval for increased well density of up to four wells per spacing unit in its currently approved spacing units in the Spyglass project. The Company plans to initiate infill drilling by the fourth quarter of the year.
An updated map of the Spyglass area showing these key wells can be found on the Projects page of the Company's website at www.americaneagleenergy.com.
"The success of the Spyglass project continues to exceed our projections," stated Brad Colby, American Eagle's President. "Our 2nd quarter exit rate of more than 600 bopd net to American Eagle's interest is greater than our previous estimates. We are extremely pleased with the both the production results and the cost performance of the program. We believe our continued drilling program will enable us to meet our 2012 expectations for reserve and production development."
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 Report on Form 10-Q for the quarter ended March 31, 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