American Eagle increasing interests in Spyglass area

American Eagle Energy Corp.

American Eagle Energy Corp. (OTCQX: AMZG) has entered into a purchase, sale and option agreement with a joint venture partner that increases the company's net acreage and share of production on wells that it currently operates, as well as interests in future wells that it plans to develop as the operator in its Spyglass Project area in the Williston Basin in northwestern Divide County, North Dakota.

American Eagle and the JV partner collectively (the "Parties") have entered into a carry agreement and a farm-out agreement pursuant to which the JV partner will fund the drilling and completion of up to 11 new wells in the Spyglass Project area. The wells will be operated by American Eagle.

For cash consideration of $47 million, American Eagle agrees to acquire from the JV partner approximately 9,300 net acres in Spyglass with current production of approximately 600 barrels of oil equivalent per day (BOEPD).

American Eagle has also closed on a senior credit facility with Morgan Stanley Capital Group Inc. The credit facility is a senior secured reserve based credit facility with a maximum potential commitment of up to $200 million. Initially, $68 million is committed and available for funding. An additional $40 million is earmarked for the purpose of purchasing additional interests in the Spyglass Project area from the JV partner. The availability of the $40 million is contingent upon the closing of the Spyglass transaction and the company meeting certain financial covenants and conditions precedent. An additional $92 million is initially uncommitted.

Based in Denver, Colorado, American Eagle Energy Corp. is an independent exploration and production operator that is focused on acquiring acreage and developing wells in the Williston Basin of North Dakota and Montana, targeting the Bakken and Three Forks shale oil formations.

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