American Eagle Energy Announces Operations Update For Spyglass Development Project

LITTLETON, Colo., May 23, 2012 /PRNewswire/ -- American Eagle Energy Corporation (OTCBB: AMZG; "American Eagle") is pleased to provide an update on its Spyglass Bakken and Three Forks Project in Divide County, North Dakota.  Significant progress on both operated and non-operated wells has been achieved recently, including initial production from the Company's first operated well, the Christianson 15-12-163-101 well ("Christianson 15-12").   

American Eagle put the Christianson 15-12 on production from the Three Forks Formation after completing the cleanout of the lateral section and installation of production equipment.   It has averaged approximately 625 BOPD with a current oil cut of 50% after four days of production and recovery of about 10% of the load water.   Offset producing wells have stabilized at an approximate 65% oil cut after several months of production. 

American Eagle's Cody 15-11-163-101 well ("Cody 15-11") is located one mile west of the Christianson 15-12 and is currently on flowback following completion of the stimulation of the Three Forks zone on May 21st.  The Coplan 1-3-163-101 well ("Coplan 1-3") is currently drilling horizontally in the Three Forks Formation, with approximately 3000 feet completed in the planned 9600' lateral section.  All three of these wells are in adjacent 1280 acre spacing units. 

American Eagle owns approximate working interests of 35%, 35%, and 13% in the Christianson, Cody and Coplan wells, respectively.  All three of these wells are subject to the recently announced financing agreement, pursuant to which American Eagle's costs of drilling, completing and equipping each of the wells (subject to certain limitations) are to be fully funded by the Company's financing partner.

The Company expects to continue its development program in additional spacing units to the west and north during the remainder of 2012, including its first Middle Bakken well in the fourth quarter. The next two wells on the drilling schedule are expected to be drilled from a common surface pad in the next unit to the west of the Coplan 1-3.  The Anton 4-4-163-101 well, 44% working interest, will be drilled to the south in Sections 4 and 9.  The Elizabeth 4-4N-163-101 well, 38% working interest, will be drilled to the north to develop Sections 28 and 33 in T164N-101W.  These two wells are also subject to the same, recently announced financing agreement.     

American Eagle has participated in several significant outside operated wells within the Spyglass area.  SM Energy has recently completed drilling and casing the Adams 1-18H well as an east offset to the Christianson 15-12.  This well is scheduled to be fracture stimulated in early June.  SM Energy has also just completed drilling and casing the Gulbranson 2-1H, approximately six miles east of the Adams 1-18H location.  The Gulbranson well is a direct offset to the Nomad 6-7-163-99H well ("Nomad 6-7") that is operated by Samson Resources.  The Nomad well was completed in March with an initial flow rate of more than 900 BOPD.  It was recently cleaned out and put on pump at an average rate of 515 BOPD with a 68% oil cut.  American Eagle owns 19%, 12% and 14% working interest in the Adams, Gulbranson and Nomad wells, respectively.   

"We are extremely pleased with the progress that we have seen in the development of our Spyglass Project.  The success of the Three Forks wells in our immediate area, combined with the successful drilling of the Middle Bakken zone directly north of our acreage by Crescent Point Energy in Saskatchewan, bolsters our geological evaluation of the project and provides the support needed to continue to expand our presence in the area," stated Brad Colby, American Eagle's president.

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.  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 companies under each of their names 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
American Eagle Energy Corporation
(303) 798-5235

SOURCE American Eagle Energy Corporation