BILLINGS, Mont., Dec. 1, 2011 /PRNewswire/ -- American Eagle Energy Inc. (OTCBB:AMZG; "American Eagle" or the "Company") is pleased to announce that the Company, along with its working interest partner and pending merger partner, Eternal Energy Corp. ("Eternal Energy"), and a third party signed a Purchase and Sale Agreement for the sale by Eternal Energy and American Eagle of 75% of their respective working interests in the West Spyglass Prospect. The purchaser for the transactions is a wholly-owned subsidiary of a publicly traded company with a market cap in excess of $10 billion.
Gross proceeds to be received from the West Spyglass Prospect sale will be approximately $13.8 million, which will be divided equally between Eternal Energy and American Eagle. Post-closing, Eternal Energy and the Company will collectively retain a 25% working interest in the West Spyglass Prospect acreage with the merged company remaining as the operator on that acreage. The West Spyglass Prospect is a Bakken and Three Forks play spanning portions of western Divide County, North Dakota and eastern Sheridan County, Montana. American Eagle and Eternal Energy began jointly acquiring the West Spyglass acreage in June 2011 with the intent of leveraging their existing leasehold and partnering with others to exploit the Bakken and Three Forks zones on highly prospective lands.
"The partial sale of our interest in the West Spyglass Prospect is yet another important step in our planned growth and integration with Eternal Energy Corp.," stated Richard Findley, the Company's President. "Not only will the sale strengthen our balance sheet, but the proceeds will support our ambitious 2012 development program. The timing of the closing of this transaction conforms closely with the initiation of our operated, multi-well, drilling program targeting the Bakken and Three Forks zones in the Spyglass and West Spyglass area."
The transaction is expected to close on December 14, 2011 and is subject to the completion of customary due diligence procedures.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, our Quarterly Report on Form 10-Q for the quarter ended September 30, 2011, 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.