LITTLETON, Colo., Sept. 27, 2012 /PRNewswire/ — American Eagle Energy Corporation (OTCQX: AMZG; “American Eagle” or the “Company”) is pleased to provide an update on its oil and gas reserves and additional well results for its Spyglass Project in Divide County, North Dakota.

American Eagle commissioned a third-party consulting firm to perform a mid-year reserve update for the Spyglass Project in order to assess the impact of the high level of field development work in the area during the first half of 2012.  A total of five company-operated wells with an average working interest of 36% have been put on production thus far in 2012.  The Company has also participated in thirteen outside-operated wells with an average working interest of 7% during the first eight months of 2012.  All of these wells have been successfully completed for production with average initial production rates typically ranging from 450 to 600 barrels of oil per day.  This drilling has confirmed an additional 17,000 gross acres in the Spyglass project as productive.

The 2012 development work has resulted in an approximate tenfold increase in company net reserves to a total proved developed reserve of 1,126,000 barrels of oil and 514,000 MCF of gas.  These estimated proved developed reserves represent a discounted present value at 10% (PV10) of approximately $39 million.  Proved undeveloped reserves associated with the program have been estimated at 2,813,000 barrels of oil and 1,382,000 MCF of gas with PV10 value of approximately $71 million net to American Eagle.  Thus, total proved reserves in the Spyglass project as of September 1, 2020 are 3,939,000 barrels oil and 1,896,000 MCF gas with a PV10 value of approximately $110 million.

Additional net reserves to the Company in the Probable and Possible categories total approximately 1,253,000 barrels of oil and 627,000 MCF of gas with an estimated PV10 value of approaching $26 million.

American Eagle continues to execute its 2012 drilling program with the drilling and casing of its first Middle Bakken well in the area at the Silas 3-2N.  The drilling rig was then skidded on that location and is currently drilling the vertical section of the Haagensen 3-2 well, which is the first infill Three Forks Formation well and located between the Cody 15-11 and Coplan 1-3 producers.  The Silas 3-2N and Haagenson 3-2 wells are scheduled to be fracture stimulated and put on production in late October.

American Eagle has contracted a second drilling rig for a minimum four-well program designed to help accelerate development of the Three Forks reserves in the project.  The Megan 14-12 well, which represents the first infill location in the Christianson 15-12 spacing unit, was spud this week.  The two drilling rigs will enable the Company to drill and complete six more wells by year end, which would bring the total number of operated, producers up to 12 wells by the start of 2013, and allow American Eagle to meet or exceed its previously announced 2012 exit rate target of 1000 BOPD net to the Company.

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, 2020 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, 2020, 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.

SOURCE American Eagle Energy Corporation

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