American Eagle Energy Inc. Signs Joint Participation Agreement in the Alberta Bakken in NW Montana

BILLINGS, Mont., May 9, 2011 /PRNewswire/ -- American Eagle Energy Inc. (OTCBB:AMZG; "American Eagle" or the "Company") is pleased to announce today that, together with its partner, Big Sky Operating LLC, the Company has entered into joint participation agreement with FX Energy, Inc. to expand and exploit its leasehold position in the emerging Bakken Source System play located in the Southern Alberta Basin.  The three companies have established an area of mutual interest (AMI) in the Bakken play area and agreed to pool their leasehold positions and equalize their respective working interests in the play.

"We are pleased to have executed our agreement with FX Energy and Big Sky Operating, as it will allow us to broaden our acreage position into areas that our team has identified as highly prospective.  We believe that being able to leverage the capabilities of FX Energy's drilling subsidiary will enable us to move our evaluation program ahead in a timely manner," stated Richard Findley, the Company's Chief Executive Officer.  "The collective abilities of the three companies should allow us to execute our Bakken exploitation strategy on this play more efficiently."

FX Energy operates approximately 10,000 acres in the Southwest Cut Bank Sand Unit (SWCBSU) and will contribute the deep rights on that acreage to the venture.  The SWCBSU is located approximately eight miles southeast of the Newfield 1-11H, a horizontal Bakken producer.  This acreage, along with additional leases acquired by Big Sky, will increase the total acreage controlled by the group to approximately 75,000 acres.  FX Energy will also provide further value to the group through the contribution of multiple existing wellbores that can be used to facilitate evaluation of the play in the area.  Initial evaluation and testing is expected to begin in the second quarter of 2011 and may involve drilling up to three vertical evaluation wells and at least one horizontal test well in 2011.

The companies have signed the participation and joint operating agreements and expect to close and equalize the investment interests before June 30, 2011.  

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 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 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.  Persons are encouraged to read our Annual Report on Form 10-K for the eight-month period ended December 31, 2010 and our other documents 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.

SOURCE American Eagle Energy Inc.