2011-04-01-2011-03-29

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
0MM
Description

To purchase 726-net-acre leasehold Benrude prospect in Roosevelt County, MT.

American Eagle Energy Inc., Billings, Mont., (OTCBB: AMZG) plans to purchase an approximate 726-net-acre leasehold position in Roosevelt County, Montana, from Knapp Oil Corp. The purchase price was not disclosed.

The asset consists of the Benrude prospect, a development drilling opportunity in the Nisku formation located updip from two structurally lower producers. The company plans to shoot a 3-D seismic survey this summer to define the prospect area fully and guide the initial well location. Drilling of the vertical development well is expected to commence in third-quarter 2011.

Richard Findley, American Eagle Energy president and chief executive, says, "The ability to develop this light-oil prospect quickly with limited capital exposure and the potential for immediate, positive cash flow make it a good fit with our ongoing large Bakken resource plays that we are pursuing in the Williston and Alberta basins."

The deal is expected to close on May 1.