American Eagle Energy expands interests in Bakken, other oil production projects
American Eagle Energy Inc. has acquired from Synergy Resources LLC, a private company, all of Synergy's working interests and certain other contractual rights of Synergy, including farm-in rights and rights in and to certain oil and gas leases, as well as all intellectual property and records held by Synergy, in each case relating to the projects and prospects identified as the "Glacier Project", the "Elm Coulee Project", the "Saskatchewan Prospects" and the "Benrude Prospect".
The Glacier Project consists of three prospective areas in the emerging Alberta Bakken play located inGlacier and Toole Counties, Montana, which have been identified as the "Bakken Basin Facies", "Bakken Northern Dome Facies" and the "Southern Dome Facies". The Company is in negotiations to acquire working interests and other rights in approximately 60,000 net acres in these areas. The Elm Coulee Project consists of a potential working interest in a Bakken oil-producing field located in Richland County, Montana. The Saskatchewan Prospects consist of two Bakken exploration prospects and one Three Forks exploration prospect, all located in the Williston Basin in Southeast Saskatchewan, Canada. The Benrude Prospect consists of approximately 760 acres in Roosevelt County, Montana, on which the Company currently expects to drill a development well that it believes to be low-risk.
Richard Findley, the Company's Chief Executive Officer, commented, "We are excited about the benefits and opportunities resulting from our transaction with Synergy -- it enhances our portfolio of prospects and projects and expands our market position into some of the most active, high-potential oil plays currently being developed in the Williston Basin and the emerging Alberta Bakken area. We believe that we are well-positioned to explore and develop these prospects and projects for the benefit of our stockholders."
In connection with the acquisition, American Eagle agreed to grant 2,141,842 common stock purchase options (adjusted for the common stock reverse split that is to be effective January 24, 2011) to the three owners of Synergy and to a consultant, who had assisted Synergy in the negotiations and closings of certain transactions that relate to the rights and interests acquired by American Eagle. The Company previously disclosed the option grants on January 6, 2011.