DENVER, Dec. 7, 2011 /PRNewswire/ -- American Eagle Energy Inc. (OTCBB: AMZG; "American Eagle") and Eternal Energy Corp. (OTCBB: EERG; "Eternal Energy") are pleased to announce that American Eagle and Eternal Energy, along with their working interest partner, Passport Energy LTD ("Passport", TSX: PPO), have successfully completed the first development well in the field, Hardy S HZ 1A4-16-4B4-9-4-21W2 (the "Hardy 4-16" well).
The Hardy 4-16 well was put on production in September, following a 28-stage fracture treatment in the 4,500 ft lateral section, well clean-out and various earlier logistical and weather delays. After an initial clean-up period, the Hardy 4-16 well averaged approximately 165 BOPD during the last ten days of September with an average oil cut of approximately 30%. The well shows a very high, stable fluid level, which is indicative of higher production potential. After recently installing upgraded production equipment, the well has been returned to production at oil rates ranging from 120 to 140 BOPD and oil cuts from 30% to 35%. American Eagle and Eternal Energy will be monitoring the production behavior and expect to be gradually increasing the pumping rates to optimize production over the next few weeks with the goal of returning the Hardy 4-16 well to its initial production levels.
American Eagle and Eternal Energy are also pleased to announce that they have received license approval for the next proposed horizontal well, to be located approximately one mile northwest of the Hardy 4-16 well. Current plans are to drill this well during the next three months, subject to rig availability. This will be the second earning well to be drilled under the farmout agreement with Passport, pursuant to which Passport will pay 38.5% of the well costs to earn a 25% working interest in the well and surrounding leases. The remaining working interest will be shared equally by American Eagle and Eternal Energy, the operator for the well. An application to drill an additional well, to be located approximately one mile southwest of the Hardy 4-16 well, has been submitted and is pending approval.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV