LITTLETON, Colo., Aug. 21, 2012 /PRNewswire/ -- American Eagle Energy Corporation (OTCQX: AMZG; "American Eagle" or the "Company") is pleased to announce that it has expanded its existing Carry Agreement to further accelerate its drilling activities. In May 2012, American Eagle announced that it had entered into a six-well Carry Agreement, pursuant to which American Eagle's proportionate share of the costs of drilling, completing and equipping each of the six wells will be funded by the financing source (subject to certain limitations) and will be repaid from its share of the wells' net production revenue. The Amended Carry Agreement extends the terms of the financing to an additional four wells, all of which will be drilled in the Bakken or Three Forks zones of its Spyglass Project.
"The expansion of our existing Carry Agreement is an important accomplishment, as it allows us to continue aggressively pursuing our development program within the Spyglass Property, while minimizing our capital outlay," stated Brad Colby, American Eagle's President. "The terms of the original Carry Agreement and the Amended Carry Agreement are extraordinarily favorable and allow us to grow our proved reserves in a manner that is designed to quickly build stockholder value."
The expansion of the scope of the Carry Agreement allows American Eagle to contract a second drilling rig to begin drilling infill locations on the Spyglass Property. American Eagle expects a second Nabors Drilling rig to arrive by the middle of September and anticipates drilling and completing a total of 12 gross wells (4.2 net) with the two rigs by the end of 2012, including all ten wells covered by the Amended Carry Agreement.
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 located in North America. The Company specializes in exploiting unconventional resource plays within the Bakken and Three Forks formations. 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.