American Eagle Energy announced that, together with its partner, Big Sky Operating, the Company has entered into a purchase and sale agreement with a private company to acquire 49,900 net acres (78 sections) in the emerging Bakken Source System play located in the Southern Alberta Basin.
"We are pleased to be securing this significant acreage position across an area that our technical team has identified as having pay potential in multiple horizons in the heart of the rapidly developing Alberta Bakken play," stated Richard Findley, the Company's Chief Executive Officer. "This acquisition is the first step in a three-prong strategy by the Company to obtain large, contiguous acreage positions in both the Bakken Basin Facies and the Bakken Dome Facies plays, which have been described in previous releases."
Cash consideration given for the acreage, located in Toole County, Montana, will be approximately $2,000,000, subject to final adjustments for title and consent issues. Closing of the acquisition is scheduled for the end of the month. Initial evaluation and testing of the prospect is expected to begin in the second quarter of 2011 and may involve drilling up to three wells in 2011.
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