American Eagle Energy Inc. Announces Update on Glacier Bakken Project in the Southern Alberta Basin

BILLINGS, Mo., Oct. 6, 2011 /PRNewswire/ -- American Eagle Energy Inc. (OTCBB: AMZG; "American Eagle" or the "Company") wishes to provide an update on the Company's Glacier Project in NW Montana. The Company and its two partners, FX Energy and Big Sky Operating LLC, this week completed drilling and casing a horizontal sidetrack from the group's previously drilled vertical test, the FX American Eagle Big Sky 14-29, in Toole County, Montana.  Good oil and gas shows were noted throughout the drilling of the horizontal section.  The approximate 4100 ft lateral section targeted the Bakken Formation and was cased with a 4 1/2" liner equipped with 26 stimulation sleeves.  A multi-stage fracture stimulation is currently slated for November.  

The group is permitting the second earning well in the previously announced farmout deal and is expected to spud the vertical evaluation well approximately 5 miles southwest of the FX American Eagle Big Sky 14-29 well in late October. Well evaluation plans include coring key sections of the Bakken Source System and logging the prospective interval. Further drilling and completion operations will be conducted based on the evaluation results and would likely include targeting the most prospective of the multiple pay zones with a horizontal sidetrack from the vertical test well.  

American Eagle is working with it partners to determine the next drilling location to advance the Bakken project in the Southwest Cut Bank Sand Unit. The SWCBSU 81-3 was a vertical deepening of an existing well designed to cost effectively evaluate the various prospective zones within the Bakken Source System. The SWCBSU 81-3 strat test well confirmed the presence of oil in the target zones following a small stimulation of multiple zones in the well. Further drilling plans being evaluated will likely include a vertical pilot well with a horizontal lateral in the vicinity of the 81-3 and targeting one of the multiple oil-bearing zones before yearend 2011.

The Company is expected to complete an acquisition in October, subject to final due diligence, of an additional 2044 net acres for approximately $400,000 from a private company. The acreage is strategically located in the area closely offsetting several Bakken producers operated by Newfield Production and Rosetta Resources in Glacier County, MT. American Eagle will conduct further assessment of the area with the objective of initiating drilling in 2012.

Richard Findley, the Company's Chief Executive Officer stated, "American Eagle's management and technical team, in conjunction with its partners, have done an outstanding job in validating our geologic play concept to date. Although we and the rest of industry have more work to do to confirm the regional economic productivity of the play, we are greatly encouraged by the results we have seen. Confirming oil in the Cut Bank field area on the west flank of the Kevin Dome and documenting strong oil shows in the horizontal leg of the 14-29 well on the central portion of the dome further confirms the potential of the Bakken/Three Forks on American Eagle's leasehold. We look forward to significantly advancing the project evaluation on both our Basin and Dome acreage, as well as the newly acquired block adjacent to the Newfield and Rosetta indicated discoveries. We remain on target to position American Eagle as a major participant in this exciting and rapidly evolving 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.  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 June 30, 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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