American Eagle Energy Announces Exercise of Purchase Option and Updated 2014 Capital Budget
March 10 2014 - 3:01PM
Marketwired
American Eagle Energy Announces Exercise of Purchase Option and
Updated 2014 Capital Budget
DENVER, CO--(Marketwired -
March 10, 2014) - American Eagle Energy (NYSEMKT: AMZG) ("American Eagle" or the
"Company") announced the exercise of its option to purchase
increased working interests in its Spyglass Area and updated its
2014 capital budget.
The Company has notified its JV Partner in its Spyglass Area of
the exercise of its purchase option to increase its working
interests on existing acreage from ~44% to 55% in its total
Spyglass Area and from ~51% to 60% in its proved area of Spyglass
for total consideration of $47 million. This increased working
interest equates to approximately 8,244 net acres and is estimated
to contribute approximately 450 barrels of oil equivalent per day
of production. The Company and Ryder Scott estimate that the
acquired interests at closing will have total proved reserves of
2.3 MMboe and a Pre-Tax PV-10 of $55 million. The acquisition
is scheduled to close on March 31, 2014 and will have an effective
date of June 1, 2013 which could decrease the net purchase price of
the acquisition adjusting for net production since the effective
date.
The Company is also updating its 2014 capital budget to include
a continual two rig horizontal drilling program on the Company's
~37,900 pro forma net acres in the Spyglass Area of the Williston
Basin. The Company plans on spending $86.1 million on drilling
and completion activity. The Company plans to spend $82.2
million to drill 24 gross (13.8 net) operated wells and $3.9
million to participate in 0.6 net non-operated wells by year-end
2014.
The following table lays out the updated 2014 drilling and
completion budget:
| |
2014 Drilling Budget ending
12/31/14 |
| Spyglass |
Planned Gross Wells |
Planned Net Wells |
|
Drilling Budget ($MM) |
| |
Operated |
24 |
13.8 |
|
$ |
82.2 |
|
|
Non-Operated |
12 |
0.6 |
|
|
3.9 |
| Total |
36 |
14.4 |
|
$ |
86.1 |
The Company's previously announced preliminary 2014 operated
drilling budget called for the drilling of 21 gross (10 net)
operated wells for approximately $65 million.
ABOUT AMERICAN EAGLE ENERGY CORPORATION
American Eagle Energy Corporation is an independent exploration
and production operator that is focused on acquiring acreage and
developing wells in the Williston Basin of North Dakota, targeting
the Bakken and Three Forks shale oil formations. The Company is
based in Denver, CO. More information about American Eagle can be
found at www.americaneagleenergy.com or by contacting investor
relations at 303-798-5235 or ir@amzgcorp.com. Company filings with
the Securities and Exchange Commission can be obtained free of
charge at the SEC's website at www.sec.gov.
SAFE HARBOR
This press release may contain forward-looking statements
regarding future events and the Company's future results that are
subject to the safe harbors created under the Securities Act of
1933 (the "Securities Act") and the Securities Exchange Act of 1934
(the "Exchange Act"). All statements other than statements of
historical facts included in this press release regarding the
Company's financial position, business strategy, plans and
objectives of management for future operations, industry
conditions, and indebtedness covenant compliance are
forward-looking statements. When used in this report,
forward-looking statements are generally accompanied by terms or
phrases such as "estimate," "project," "predict," "believe,"
"expect," "anticipate," "possible," "target," "plan," "intend,"
"seek," "goal," "will," "should," "may" or other words and similar
expressions that convey the uncertainty of future events or
outcomes. Items contemplating or making assumptions about,
actual or potential future sales, market size, collaborations, and
trends or operating results also constitute such forward-looking
statements.
Forward-looking statements involve inherent risks and
uncertainties and important factors (many of which are beyond the
Company's control) that could cause actual results to differ
materially from those set forth in the forward-looking statements,
including the amount we may invest, the location, and the scale of
the drilling projects in which we intend to participate; our
beliefs with respect to the potential value of drilling projects;
our beliefs with regard to the impact of environmental and other
regulations on our business; our beliefs with respect to the
strengths of our business model; our assumptions, beliefs, and
expectations with respect to future market conditions; our plans
for future capital expenditures; and our capital needs, the
adequacy of our capital resources, and potential sources of
capital.
The Company has based these forward-looking statements on its
current expectations and assumptions about future
events. While management considers these expectations and
assumptions to be reasonable, they are inherently subject to
significant business, economic, competitive, regulatory, and other
risks, contingencies, and uncertainties, most of which are
difficult to predict and many of which are beyond the Company's
control. The Company does not assume any obligations to update any
of these forward-looking statements.
INVESTOR RELATIONS CONTACT:Marty Beskow, CFAVice President of
Capital Markets and StrategyAmerican Eagle Energy
Corporation720-330-8378ir@amzgcorp.comwww.americaneagleenergy.com
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