LITTLETON, Colo., Oct. 25, 2012 /PRNewswire/ -- American Eagle Energy Corporation (OTCQX: AMZG; "American Eagle" or the "Company") is pleased to announce that the Company and its JV partner have closed on a strategic acreage acquisition in and around the Company's Spyglass and West Spyglass Properties in Divide County, North Dakota.
The Company and its JV partner jointly purchased a total of 3,472 net acres from a private operator in the area for cash consideration of approximately $7.1 million. Key to the acquisition is that over 30% of the acquired acreage lies within proved and producing spacing units located within the Spyglass Property. Based upon the reserves update that the Company announced on September 27, 2012, the acquired acreage is expected to increase the PV-10 value of the Company's proved and probable reserves by approximately $14 million. The remaining acreage that was acquired will enable American Eagle to strengthen and consolidate its position as operator of at least four other spacing units in the area. American Eagle's share of the total acquisition included 1,129 net acres at an approximate cost to the Company of $2.4 million.
"Our ability to leverage our drilling success in the Spyglass Property and further build our acreage position in Divide County is quite exciting," stated Brad Colby, American Eagle's President and CEO. "In addition to the obvious value of the proved acreage, the strategic nature of adding the additional operated spacing units to our drilling inventory is expected to prove extremely valuable as we further develop the region."
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.
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