American Eagle Energy Inc. reported that the company has completed the drilling of a well on its oil and gas leasehold in Canada. The company drilled the well in eighteen days and expects to begin completion operations in late June 2011.
American Eagle Energy Inc. said that the Hardy 4-16 well was drilled to a vertical depth of approximately 11,500 feet and then finished with a horizontal well lateral of approximately 4,300 feet. The company will use a 29 stage hydraulic fracturing operation to complete the well and bring it onto production.
American Eagle Energy Inc. said that the Hardy 4-16 well is located in Saskatchewan, Canada, and is close to a previous successful well drilled and completed by the company.
American Eagle Energy Inc. has a 37.5% working interest in the Hardy 4-16 well, which targeted the Bakken formation. Eternal Energy Corp. and Passport Energy Ltd. also own a working interest in the Hardy 4-16 well and have a 37.5% and 25% share, respectively.
Although American Eagle Energy Inc. and Eternal Energy Corp. each have a working interest of 37.5%, the cost to drill and complete will be allocated differently. Both companies are required to pay 30.75% of these costs, with Passport Energy Ltd. paying the balance.
For more information on the company, go to www.americaneagleoil.com