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American Eagle Energy Announces Financing For Spyglass Three Forks Development Project

LITTLETON, Colo., May 16, 2012 /PRNewswire/ -- American Eagle Energy Corporation (OTCBB: AMZG; "American Eagle") today announced that it has entered into an agreement for the financing of each of its first six operated wells in the Bakken or Three Forks zones of its Spyglass Project. American Eagle's financed costs of drilling, completing and equipping each of the wells are to be fully funded by the financing source (subject to certain limitations). American Eagle will act as the operator and the wells are to be drilled and completed during the next 12 months. American Eagle will repay the financing source from its share of the net production revenue.

As previously announced, American Eagle has completed the drilling and casing of its first two  operated horizontal development wells (the Christianson 15-12-163-101 and Cody 15-11-163-101 wells), which were drilled on adjacent 1280 acre spacing units with lateral sections of approximately 9500 feet each. Both wells targeted the Three Forks zone, which has been proved productive in the offset Legaard 4-25H and the Bagley 4-30H wells that are operated by SM Energy. American Eagle owns an approximate 4% working interest in each of the Legaard and the Bagley wells. The Christianson well has been completed and cleaned out and will go on production late this week. The Cody well is scheduled for stimulation prior to the end of May. American Eagle is now in the process of drilling its third Three Forks Formation well at the Coplan 1-3-163-101 location. The cost of drilling, completing, and equipping each of these three wells is included in the funding announced in today's release.

"This financing agreement will enable American Eagle to accelerate its development of the Spyglass Project in an economically advantageous manner. It frees up our capital resources in the near term for us to expand our other lease acquisition and development activities, while permitting us to continue to develop our Three Forks play on a fast track," stated Brad Colby, American Eagle's president.

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, 2003 for the purpose of acquiring, exploring, and developing natural resource properties. Prior to December 1, 2011, 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.

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