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, 2012 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.