2011-02-11-2011-02-11

To acquire 49,900 net acres in the Southern Alberta Basin of Montana in the Alberta Bakken play.

American Eagle Energy Inc., Billings, Mont., (OTCBB: AMZGD) and its joint-venture partner, Big Sky Operating LLC, plan to acquire 49,900 net acres (78 sections) in the emerging Bakken source system in the Southern Alberta Basin of Montana from an undisclosed private company for $2 million.

The assets are in Toole County, in the heart of the Alberta Bakken play. Upside includes identified potential pay zones in multiple horizons.

"This acquisition is the first step in a three-prong strategy by the company to obtain large, contiguous acreage positions in both the Bakken Basin facies and the Bakken Dome facies plays," notes Richard Findley, American Eagle chief executive.

The deal is expected to close by the end of February. Initial evaluation and testing of the prospect is expected to begin in second-quarter 2011 and may involve drilling up to three wells in 2011.