American Eagle Energy Inc. Announces Spudding of Bakken Development Well in the Hardy Field, Southeast Saskatchewan

BILLINGS, Mont., May 19, 2011 /PRNewswire/ -- American Eagle Energy Inc. (OTCBB: AMZG; "American Eagle" or the "Company") is pleased to announce today that it has spud its first horizontal Bakken development well in the Hardy Field (Bakken Formation) of Southeast Saskatchewan.  Proposed merger partner Eternal Energy Corp., as well as Passport Energy Ltd., are working interest partners in the well.  The Hardy S 1A4-16-4B4-9-04-21W2 is the initial earning well for the farm-out agreement among the companies.  

The new well is located approximately one-half mile west of American Eagle's current Hardy 7-9 producing well (owned equally with Eternal Energy) and has a projected total depth of 3,515 meters with a lateral section in the Bakken Formation of about 1,370 meters.  A multi-stage fracture stimulation is planned for the completion of this new well.

Pursuant to the previously announced agreement among the three companies, American Eagle and Eternal Energy will each maintain a 37.5% working interest in the new well, but each will only pay 30.75% of its drilling, completing and equipping costs.

"American Eagle is pleased to be able to secure a rig early in the drilling season so that we can get this development work initiated," stated Richard Findley, the Company's Chief Executive Officer.  "This well is an important component of the Company's 2011 capital program, as we continue to build cash flow and a solid reserves position and to develop our significant inventory of Bakken well locations in both the Williston and Southern Alberta Basins."

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.  Persons are encouraged to read our Annual Report on Form 10-K for the eight-month period ended December 31, 2010, our Quarterly Report on Form 10-Q for the three-month period ended March 31, 2011, and our other documents filed 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 Company at the SEC's internet site (http://www.sec.gov).  The company assumes no obligation to update any of these forward-looking statements.

SOURCE American Eagle Energy Inc.

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