Thursday, May 19, 2011
American Eagle Energy Inc.
American Eagle Energy has spud its first horizontal Bakken development well in the Hardy Field (Bakken Formation) of Southeast Saskatchewan. Proposed merger partner Eternal Energy Corp., as well as Passport Energy Ltd., are working interest partners in the well. The Hardy S 1A4-16-4B4-9-04-21W2 is the initial earning well for the farm-out agreement among the companies.
The new well is located approximately one-half mile west of American Eagle's current Hardy 7-9 producing well (owned equally with Eternal Energy) and has a projected total depth of 3,515 meters with a lateral section in the Bakken Formation of about 1,370 meters. A multi-stage fracture stimulation is planned for the completion of this new well.
Pursuant to the previously announced agreement among the three companies, American Eagle and Eternal Energy will each maintain a 37.5% working interest in the new well, but each will only pay 30.75% of its drilling, completing and equipping costs.
"American Eagle is pleased to be able to secure a rig early in the drilling season so that we can get this development work initiated," stated Richard Findley, the Company's Chief Executive Officer. "This well is an important component of the Company's 2011 capital program, as we continue to build cash flow and a solid reserves position and to develop our significant inventory of Bakken well locations in both the Williston and Southern Alberta Basins."
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