BILLINGS, Mont., March 28, 2011 /PRNewswire/ -- American Eagle Energy Inc. (OTC Bulletin Board: AMZG; "American Eagle" or the "Company") is pleased to announce that, on March 15, 2011, it entered into a Purchase Agreement with Knapp Oil Corporation ("Knapp") for the purchase of an approximate 726 net acre leasehold position owned by Knapp, located in Roosevelt County, Montana. Subject to title due diligence, to be completed by April 15, 2011, the purchase transaction is expected to close on May 1, 2011. The Benrude Prospect is a development drilling opportunity in the Nisku Formation located updip from two structurally lower producers. The Company plans to shoot a 3D seismic survey this summer to define the prospect area fully and guide the initial well location. Drilling of the vertical development well is expected to be initiated in the third quarter of 2011.
The acquisition of this low-risk, high-potential, conventional Nisku Formation prospect provides a valuable addition to American Eagle's portfolio of projects," stated Richard Findley, the Company's President and Chief Executive Officer. "The ability to develop this light oil prospect quickly with limited capital exposure and the potential for immediate, positive cash flow make it a good fit with our ongoing large Bakken resource plays that we are pursuing in the Williston and Alberta Basins."
About American Eagle Energy Inc.:
American Eagle Energy Inc. is an oil and gas company engaged in the exploration of petroleum and natural gas. The Company was incorporated in Nevada on March 14, 2007 to engage in the acquisition, exploration, and development of natural resource properties.
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 growth in oil and gas sales, 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 Inc. 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. Readers are encouraged to read our Annual Report on Form 10-K for the year ended December 31, 2010, and our other documents subsequently 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). The Company assumes no obligation to update any of these forward-looking statements.
CONTACT: Richard Findley
Chief Executive Officer
American Eagle Energy Inc.
SOURCE American Eagle Energy Inc.