American Eagle Energy Announces Spyglass Project Update in North Dakota

LITTLETON, Colo., March 21, 2012 /PRNewswire/ -- American Eagle Energy Corporation (OTCBB: AMZG; "American Eagle") today provided an update on the increase in its leasehold position and the operations of its Spyglass Bakken and Three Forks projects in Divide County, North Dakota.  American Eagle's leasehold position in the Spyglass project area has been bolstered during the last several months by acquisition of approximately 1485 net acres through a combination of state lease sales and targeted leasing efforts.

The drilling and casing of American Eagle's first operated horizontal development well in its Spyglass project was completed last week.  The Christianson 15-12-163-101 well (AMZG working interest = 35.5%) was drilled to a total measured depth of 17,825 feet with a lateral section of approximately 9500 feet in the Three Forks zone, which has also been proved productive in the offset Legaard 4-25H and the Bagley 4-30H wells that are operated by SM Energy.  American Eagle has planned a 30-stage fracture stimulation for the completion of its Christianson well, which is currently scheduled for early in the second quarter, pending availability of the stimulation services.   

American Eagle is currently moving the drilling rig from the Christianson well approximately one mile west to drill a second Three Forks Formation well at the Cody 15-11-163-101 location.  American Eagle has submitted additional well permits for spacing units to the west and northwest of the Cody location with the intention of maintaining a continuous development program in the area during 2012.

American Eagle has participated in several non-operated wells in the Spyglass project that were completed in the first quarter of 2012, including:  1) Thomte 8-5 in Sections 5 & 8, T163-R99W drilled by Samson Resources and reporting an initial 30-day oil rate in excess of 900 bopd; 2) Titan 36-25 in Sections 25 & 36, T164N-98W also drilled by Samson Resources and reporting an initial 30-day oil rate in excess of 600 bopd; 3) Wolter 15-8 in Sections 5 & 8, T163N-R100W drilled by SM Energy and reporting an initial 14-day oil test rate of 520 bopd; and 4) Nomad 7-6 in Sections 6 & 7, T163N-99W (direct offset of the Thomte 8-5 well), drilled by Samson Resources which has just begun post-stimulation testing with the initial five days of production averaging over 950 bopd.  American Eagle owns more than a 14% working interest in the Nomad 7-6 well. 

American Eagle will participate in at least two significant non-operated wells that are scheduled to be drilled by SM Energy during the second quarter of 2012.  American Eagle owns approximately a 19% working interest in the well located in Sections 6 & 7, T163N-R100W (east offset to the Christianson 15-11-163-101) and approximately an 11% working interest the well located in Sections 1 & 12, T163N-100W (west offset to the Nomad 7-6). 

"We are excited to have kicked off our 2012 operated development program with the drilling of the Christianson well.  We have a frac date for late March that will get the well producing early in the second quarter," stated Brad Colby, American Eagle's President.  "Further, the non-operated wells in our portfolio have also contributed materially to the development of the play and have allowed us to be confident with our decision to continue to increase our acreage position in the play," Mr. Colby continued. 

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.  These risks and uncertainties include, but are not limited to, those relating to development and expansion activities, dependence on existing management, financing activities, and domestic and global economic conditions.  Persons are encouraged to read (i) the company's Annual Report on Form 10-K for the year ended December 31, 2010, and its Quarterly Report on Form 10-Q for the three-month period ended September 30, 2011 (both under the name "Eternal Energy Corp."), and (ii) the Annual Report on Form 10-K for the eight-month period ended December 31, 2010, and Quarterly Report on Form 10-Q for the three-month period ended September 30, 2011 (both under the name "American Eagle Energy Inc."), as well as the other documents filed under each name with the Securities and Exchange Commission for meaningful cautionary language in respect of forward-looking statements in this press release.  Interested persons are able to obtain free copies of filings containing information about the companies under each of their names at the SEC's internet site (http://www.sec.gov).  American Eagle Energy Corporation does not assume any obligation to update any of these forward-looking statements.

SOURCE American Eagle Energy Corporation

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