American Eagle Energy Inc. announced that the company has acquired acreage in the United States that is prospective for various oil and gas formations. The company signed an agreement with a private oil and gas company to acquire 49,000 net acres across 78 different sections. American Eagle is partnering with Big Sky Operating LLC in the acquisition.
American Eagle said that the acreage is located in Toole County, Montana, and is part of the Southern Alberta Basin, an established and producing oil and gas basin that runs between the United States and Canada. The acreage is prospective for the Bakken formation.
American Eagle and Big Sky Operating LLC will pay a total of $2 million in cash for the acreage, and the acquisition is expected to close before the end of February 2011. The two companies plan to start evaluating the acreage in the second quarter of 2011, and initial plans call for three wells by the end of this year.
This was the second acquisition of acreage prospective for the Bakken formation in the last month for American Eagle. The company acquired working interests in oil and gas leases from Synergy Resources LLC, a private oil and gas company, in January 2011.
For more information on the company, go to www.americaneagleoil.com