SOURCE: American Eagle Energy Corporation

American Eagle Energy Corporation

October 07, 2013 09:00 ET

American Eagle Energy Announces Closing of Acquisition

DENVER, CO--(Marketwired - October 07, 2013) -  American Eagle Energy Corporation (OTCQX: AMZG) (the "Company" or "American Eagle") announced today that it has closed on the first part of the previously announced acquisition in its Spyglass Project area in the Williston Basin in northwestern Divide County, North Dakota. For a gross purchase price of $47 million, or $45 million in cash after purchase price adjustments, the Company acquired approximately 9,700 net acres in Spyglass with production of approximately 750 barrels of oil equivalent per day ("BOEPD").

The Company financed the acquisition with $40 million that was previously committed under the Senior Credit Facility with Morgan Stanley and $5 million from cash on hand. Total debt outstanding on the Senior Credit Facility is now $108 million.

American Eagle anticipates that later today it will close the previously announced offering of 13,709,386 shares of its common stock to the public at $1.70 per share for gross proceeds of approximately $23.3 million. Net proceeds to the Company, after deducting underwriting discounts, commissions and other expenses, are expected to be approximately $21.5 million. After settlement, American Eagle expects its cash on hand to be approximately $30 million and shares outstanding to be approximately 68.8 million.

ABOUT AMERICAN EAGLE ENERGY CORPORATION

American Eagle Energy Corporation is an independent exploration and production operator that is focused on acquiring acreage and developing wells in the Williston Basin of North Dakota, targeting the Bakken and Three Forks shale oil formations. The Company is based in Denver, CO. More information about American Eagle can be found at www.americaneagleenergy.com or by contacting investor relations at 303-798-5235 or ir@amzgcorp.com. Company filings with the Securities and Exchange Commission can be obtained free of charge at the SEC's internet site at www.sec.gov.

SAFE HARBOR

This press release may contain forward-looking statements regarding future events and the Company's future results, including the closing of the offering and the Company's use of offering proceeds, that are subject to the safe harbors created under the Securities Act of 1933 (the "Securities Act") and the Securities Exchange Act of 1934 (the "Exchange Act"). All statements other than statements of historical facts included in this press release regarding the Company's financial position, business strategy, plans and objectives of management for future operations, industry conditions, and indebtedness covenant compliance are forward-looking statements. When used in this report, forward-looking statements are generally accompanied by terms or phrases such as "estimate," "project," "predict," "believe," "expect," "anticipate," "possible," "target," "plan," "intend," "seek," "goal," "will," "should," "may" or other words and similar expressions that convey the uncertainty of future events or outcomes. Items contemplating or making assumptions about, actual or potential future sales, market size, collaborations, and trends or operating results also constitute such forward-looking statements. 

Forward-looking statements involve inherent risks and uncertainties and important factors (many of which are beyond the Company's control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following: general economic or industry conditions, nationally and/or in the communities in which the Company conducts business, changes in the interest rate environment, legislation or regulatory requirements, conditions of the securities markets, our ability to raise capital, changes in accounting principles, policies, or guidelines, financial or political instability, acts of war or terrorism, other economic, competitive, governmental, regulatory and technical factors affecting the Company's operations, products, services, and prices. 

The Company has based these forward-looking statements on its current expectations and assumptions about future events. While management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory, and other risks, contingencies, and uncertainties, most of which are difficult to predict and many of which are beyond the Company's control. The Company does not assume any obligations to update any of these forward-looking statements.

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