American Eagle Energy Inc. Announces 15,000 Acre Farm-in Agreement in Montana Area of Alberta Basin Bakken Prospect

BILLINGS, Mont., Feb. 17, 2011 /PRNewswire/ -- American Eagle Energy Inc. (OTC Bulletin Board: AMZGD; "American Eagle" or the "Company") is pleased to announce that, effective January 26, 2011, the Company and Big Sky Operating LLC ("Big Sky") have entered into a Farm-in Agreement with Somont Oil Company Inc. ("Somont") on an approximate 15,000 acre leasehold position owned by Somont, located in Toole County, Montana.  Under terms of the Agreement, the initial test well will target the Bakken Formation and will spud by June 30, 2011.  American Eagle and Big Sky will each own a 50% working interest before payout in the initial test well and a 37.5% working interest after payout.  American Eagle and Big Sky have the right to drill subsequent wells on the farm-in leasehold at terms substantially the same as those for the initial test well.  All of such wells in the prospect area will be operated by American Eagle.

"The execution of the Farm-in Agreement with Somont Oil Company represents the second part of our three-prong strategy to obtain large, contiguous acreage positions in both the Bakken Basin Facies and the Bakken Dome Facies plays," stated Richard Findley, the Company's President and Chief Executive Officer.  "This agreement marks another milestone in our effort to become a major operator in this developing Bakken play."

About American Eagle Energy Inc.:

American Eagle Energy Inc. is an oil and gas company engaged in the exploration of petroleum and natural gas.  The company was incorporated in Nevada on March 14, 2007 to engage in the acquisition, exploration, and development of natural resource properties.

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 Inc.  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.  The company assumes no obligation to update any of these forward-looking statements.

SOURCE American Eagle Energy Inc.

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED