American Eagle Energy Corp. (NYSE MKT: AMZG) reports that, given plummeting crude oil prices, the company has suspended its 2015 operated drilling budget and does not anticipate resuming drilling operations until crude oil prices improve.
The company expects to conduct completion operations in the first quarter of 2015 on two gross (1.9 net) wells (Byron 4-4 and Shelley Lynn 4-4N) that were drilled during the fourth quarter of 2014. These operations are estimated to require a capital expenditure of approximately $4.5 million in 2015.
Based in Denver, Colorado, American Eagle Energy 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’s decision to suspend drilling in 2015 makes it one of the first US oil producers to make this move as a result of the ongoing slide in crude oil prices.