|By Marketwired .||
|July 16, 2014 04:05 PM EDT||
DENVER, CO--(Marketwired - July 16, 2014) - American Eagle Energy Corporation (NYSE MKT: AMZG) ("American Eagle" or the "Company"), announces its operational update and guidance for production and the Company's operated well development in its Spyglass Project area in northwestern Divide County, North Dakota.
- Added 9 gross (3.9 net) operated wells to production that included six Three Forks and three Bakken wells in eastern and central Spyglass and a step-out well in western Spyglass during the second quarter of 2014;
- Ella well (Three Forks step-out in western Spyglass) produced an average of approximately 343 barrels of oil equivalent per day ("BOEPD") during the first 30 days and 424 barrels of oil equivalent yesterday;
- Efficiently drilled 4-well pad in 62 days, averaging 11.6 days from spud-to-total-depth;
- Net production is currently averaging approximately 2,200 to 2,300 BOEPD;
- 6 gross (4.6 net) operated wells, including a 4-well pad, are being completed or awaiting completion and are expected to be added to production during the third quarter of 2014; and
- On track to meet or exceed 2014 exit rate production guidance of over 3,000 BOEPD.
Second Quarter 2014 -- Well Development Activity
American Eagle added 9 gross (3.9 net) operated wells to production during second quarter 2014. The Company's May 13, 2014 operations update included initial results for two operated wells, the Blackwatch (Carry) well and the Haugen (Farm-Out) well that were brought onto production during early April 2014. In addition to these wells, American Eagle added seven more operated wells to production during second quarter 2014. The operated wells listed below have produced an average of 30 days, unless otherwise noted, and are listed from the most westerly located well to the most easterly well:
---------------------------------------------------------------------------- 30-Day Lateral IP Rate Length Approximate Infill Number Well Formation BOEPD(1) Feet DSU(2)Acres in DSU(2) ---------------------------------------------------------------------------- Ella 4-15-163- 1st well in 102 (15 & 22) Three Forks 343 9,716 1,280 DSU, 1st Three Farm-Out Forks ---------------------------------------------------------------------------- Murielle 16-1E- 3rd well in 163-101 (5 & Three Forks 401 9.950 1,280 DSU, 2nd Three 6)(3) Forks ---------------------------------------------------------------------------- Warren 4-2- 163- 4th well in 101 (2 & 11) Bakken 178 9,534 1,280 DSU, 1st Bakken ---------------------------------------------------------------------------- Braelynne 2-2N- 164-101 (26 & Bakken 68 6,012 800 5th well in 35) Carry DSU, 3rd Bakken ---------------------------------------------------------------------------- Richard 2-13N- 5th well in 163-101 (1 & Three Forks 195 10,158 1,280 DSU, 3rd Three 12)(3) Forks ----------------------------------------------------------------------------
The Ella 4-15 step-out well is a Three Forks completion and part of the Farm-Out well program with the Company's JV partner. This well is located approximately 2 miles southwest of the Bryce 3-2 Three Forks producer and 4 miles southeast of the Haugen 15-12 Three Forks well. The good initial oil rates from the Ella 4-15 confirms a significant expansion of the productive Three Forks reservoir to the south and west of the current field area.
The Murielle 16-1E produced an average of 401 BOEPD during the first 10 days of production. It is a Three Forks well located in the central portion of the Spyglass acreage in the same DSU as the Stanley (Three Forks) and Taylor 16-1E (Bakken) wells and exhibits similarly strong production results. The Company is currently drilling the lateral section of the Eli 8-1E as an infill Bakken well in the same DSU. The Murielle 16-1E well came onto production the last week of June, and had minimal impact on second quarter average production.
The Warren 4-2 (Bakken) produced an average of 178 BOEPD during the first 30 days of production and has been steadily cleaning up with decreasing water cuts and flat to slightly increasing oil rates as it nears the end of its second month of production. The Richard 2-13N (Three Forks) produced an average of 195 BOEPD during the first 10 days of production. The Richard 2-13N well came onto production the last day of June. The Braelynne 2-2N is a short lateral Middle Bakken well and is the fourth of five carried working interest well that the Company drilled with its JV partner. The well is the poorest completion to date averaging only 68 BOEPD with a water cut in excess of 80%. The poor productivity and high water cuts observed seems to be attributable to an area of poor reservoir that is confined to approximately the 800 acre DSU defined by Sections 26 and 35 - 164-101 with the surrounding wells showing normal performance.
The La Plata State 2-16 and the Shelly 3-2N wells are Three Forks completions that were put on pump in early June. Both wells had initial production rates similar to offset wells in their area for approximately 7 days prior to experiencing sharp drops (greater than 80% reductions) in total productivity that would have to be attributed to near wellbore plugging effects. Remedial work is being planned to go into the wells and check for pluging and re-establish good communication with the reservoir.
A follow-up on the Haugen 15-12, a Three Forks step out well drilled on the far western edge of the Spyglass acreage, shows that the well continues to produce at, essentially, a flat oil rate with an average of 91 BOEPD over the last 7 days. The production and emulsion problems observed in the initial production period and reported in our previous operations update have been sorted out and the well is producing steadily.
Of the 9 gross (3.9 net) operated wells added to production during the second quarter of 2014, 2 wells are Farm-Out wells (Haugen and Ella), 3 wells are Carry wells (Blackwatch, Braelynne and LaPlata State), and 4 wells (Warren, Shelly, Murielle and Richard) are regular working interest wells.
Operated Well Development Guidance
The Company currently has 2 gross (1.0 net) operated wells that are in the process of being completed, 4 gross (3.5 net) operated wells on a 4-well pad that are awaiting completion, and 2 gross (1.4 net) operated wells that are being drilled. All eight of these operated wells (six Three Forks and two Bakken wells) are in the central portion of Spyglass, with high working interests and surrounded by wells that have exhibited strong production results.
The first two wells, the Annie 15-32 and James 15-20, have been stimulated and are being cleaned out and are projected to be on production during the second half of July. The remaining four wells on the single drill pad are expected to begin fracturing operations in late July and be put on production before the end of August. The last two wells, the Rick 13-31 and Eli 8-1E, are drilling in the lateral sections and are infill wells to the Tangedal 13-31 and the Taylor 16-1E, respectively. American Eagle plans to announce results of the wells once it has achieved approximately 30 days of cumulative production. The Company anticipates its next operations update will be included in second quarter financial results that will likely be reported during the first half of August.
Since September 2013, American Eagle has been running two rigs to develop its Spyglass area and has averaged approximately 24 days per well from spud-to-spud and 18 days from spud-to-rig release. On a recently drilled 4-well pad, the Company drilled all four wells including rig moves in 62 days, averaging 15.5 days per well spud-to-spud. Overall, the Company has reduced its average drilling time from spud to rig release by 55% over the last two years.
Production Volume Guidance
While weather conditions improved during the second quarter, American Eagle's production was impacted by a number of road closures due to heavy rains that required wells to be shut in when storage tanks were full. The Company estimates that average second quarter 2014 production was approximately 2,000 to 2,100 BOEPD. The Company estimates that its current production is approximately 2,200 to 2,300 BOEPD.
American Eagle's accumulation of drilled wells with high working interest is anticipated to add significant production during the second half of 2014. The 6 gross (4.5 net) wells that are completing or awaiting completion should provide substantial uplift to third quarter production. The two wells (1.4 net) currently drilling should be completed during the third quarter with anticipation of contributing to fourth quarter 2014 production. These higher working interest wells along with additional planned development wells in 2014 should position American Eagle to meet or exceed its production volume guidance for 2014. As such, American Eagle reaffirms its 2014 exit rate production volume guidance at over 3,000 BOEPD.
Brad Colby, President and CEO of American Eagle, said, "During the second quarter of 2014 we added 9 gross (3.9 net) operated wells to production, which is the most wells the Company has added in a single quarter and more than were added in all of 2012 when we commenced drilling in Spyglass. We have continued to improve our drilling operations and have drilled 2-mile lateral wells in as little as 11 days. We are developing strategies and processes to realize improvements in well development costs and other operational efficiencies. We drilled our first 4-well pad in 62 days and look forward to completing and producing from these high working interest wells over the near term. While American Eagle was impacted by weather conditions, the Company's development program for the remainder of 2014 is intended to minimize future impact. Importantly, initial results from recent wells, including the Ella and Murielle, continue to de-risk and delineate our Spyglass well inventory and should be additive to future reserve and production growth."
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 [email protected]. Company filings with the Securities and Exchange Commission can be obtained free of charge at the SEC's website at www.sec.gov.
This press release may contain forward-looking statements regarding future events and the Company's future results 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 amount we may invest, the location, and the scale of the drilling projects in which we intend to participate; our beliefs with respect to the potential value of drilling projects; our beliefs with regard to the impact of environmental and other regulations on our business; our beliefs with respect to the strengths of our business model; our assumptions, beliefs, and expectations with respect to future market conditions; our plans for future capital expenditures; and our capital needs, the adequacy of our capital resources, and potential sources of capital.
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.
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
Jul. 30, 2015 07:30 PM EDT Reads: 1,395
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducte...
Jul. 30, 2015 07:15 PM EDT Reads: 297
Providing the needed data for application development and testing is a huge headache for most organizations. The problems are often the same across companies - speed, quality, cost, and control. Provisioning data can take days or weeks, every time a refresh is required. Using dummy data leads to quality problems. Creating physical copies of large data sets and sending them to distributed teams of developers eats up expensive storage and bandwidth resources. And, all of these copies proliferating...
Jul. 30, 2015 06:30 PM EDT Reads: 887
Malicious agents are moving faster than the speed of business. Even more worrisome, most companies are relying on legacy approaches to security that are no longer capable of meeting current threats. In the modern cloud, threat diversity is rapidly expanding, necessitating more sophisticated security protocols than those used in the past or in desktop environments. Yet companies are falling for cloud security myths that were truths at one time but have evolved out of existence.
Jul. 30, 2015 06:00 PM EDT Reads: 1,799
Digital Transformation is the ultimate goal of cloud computing and related initiatives. The phrase is certainly not a precise one, and as subject to hand-waving and distortion as any high-falutin' terminology in the world of information technology. Yet it is an excellent choice of words to describe what enterprise IT—and by extension, organizations in general—should be working to achieve. Digital Transformation means: handling all the data types being found and created in the organizat...
Jul. 30, 2015 05:00 PM EDT Reads: 1,087
Public Cloud IaaS started its life in the developer and startup communities and has grown rapidly to a $20B+ industry, but it still pales in comparison to how much is spent worldwide on IT: $3.6 trillion. In fact, there are 8.6 million data centers worldwide, the reality is many small and medium sized business have server closets and colocation footprints filled with servers and storage gear. While on-premise environment virtualization may have peaked at 75%, the Public Cloud has lagged in adop...
Jul. 30, 2015 04:00 PM EDT Reads: 2,200
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Jul. 30, 2015 03:45 PM EDT Reads: 446
The time is ripe for high speed resilient software defined storage solutions with unlimited scalability. ISS has been working with the leading open source projects and developed a commercial high performance solution that is able to grow forever without performance limitations. In his session at Cloud Expo, Alex Gorbachev, President of Intelligent Systems Services Inc., shared foundation principles of Ceph architecture, as well as the design to deliver this storage to traditional SAN storage co...
Jul. 30, 2015 03:00 PM EDT Reads: 1,739
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
Jul. 30, 2015 03:00 PM EDT Reads: 486
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with ...
Jul. 30, 2015 02:30 PM EDT
The Cloud industry has moved from being more than just being able to provide infrastructure and management services on the Cloud. Enter a new era of Cloud computing where monetization’s services through the Cloud are an essential piece of strategy to feed your organizations bottom-line, your revenue and Profitability. In their session at 16th Cloud Expo, Ermanno Bonifazi, CEO & Founder of Solgenia, and Ian Khan, Global Strategic Positioning & Brand Manager at Solgenia, discussed how to easily o...
Jul. 30, 2015 01:45 PM EDT Reads: 376
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Jul. 30, 2015 01:45 PM EDT Reads: 263
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
Jul. 30, 2015 01:30 PM EDT
Rapid innovation, changing business landscapes, and new IT demands force businesses to make changes quickly. The DevOps approach is a way to increase business agility through collaboration, communication, and integration across different teams in the IT organization. In his session at DevOps Summit, Chris Van Tuin, Chief Technologist for the Western US at Red Hat, will discuss: The acceleration of application delivery for the business with DevOps
Jul. 30, 2015 12:45 PM EDT Reads: 1,114
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, S...
Jul. 30, 2015 12:00 PM EDT Reads: 2,050