|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.
The Quantified Economy represents the total global addressable market (TAM) for IoT that, according to a recent IDC report, will grow to an unprecedented $1.3 trillion by 2019. With this the third wave of the Internet-global proliferation of connected devices, appliances and sensors is poised to take off in 2016. In his session at @ThingsExpo, David McLauchlan, CEO and co-founder of Buddy Platform, will discuss how the ability to access and analyze the massive volume of streaming data from mil...
Feb. 13, 2016 12:00 PM EST
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
Feb. 13, 2016 12:00 PM EST Reads: 468
SYS-CON Events announced today that Column Technologies will exhibit at SYS-CON's @DevOpsSummit at Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Established in 1998, Column Technologies is a global technology solutions provider with over 400 employees, headquartered in the United States with offices in Canada, India, and the United Kingdom. Column Technologies provides “Best of Breed” technology solutions that automate the key DevOps principal...
Feb. 13, 2016 12:00 PM EST
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
Feb. 13, 2016 12:00 PM EST Reads: 440
In most cases, it is convenient to have some human interaction with a web (micro-)service, no matter how small it is. A traditional approach would be to create an HTTP interface, where user requests will be dispatched and HTML/CSS pages must be served. This approach is indeed very traditional for a web site, but not really convenient for a web service, which is not intended to be good looking, 24x7 up and running and UX-optimized. Instead, talking to a web service in a chat-bot mode would be muc...
Feb. 13, 2016 11:45 AM EST Reads: 310
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
Feb. 13, 2016 11:45 AM EST Reads: 269
When building large, cloud-based applications that operate at a high scale, it’s important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. “Fly two mistakes high” is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Lee...
Feb. 13, 2016 11:45 AM EST
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
Feb. 13, 2016 11:30 AM EST Reads: 279
WebSocket is effectively a persistent and fat pipe that is compatible with a standard web infrastructure; a "TCP for the Web." If you think of WebSocket in this light, there are other more hugely interesting applications of WebSocket than just simply sending data to a browser. In his session at 18th Cloud Expo, Frank Greco, Director of Technology for Kaazing Corporation, will compare other modern web connectivity methods such as HTTP/2, HTTP Streaming, Server-Sent Events and new W3C event APIs ...
Feb. 13, 2016 11:30 AM EST
SYS-CON Events announced today that AppNeta, the leader in performance insight for business-critical web applications, will exhibit and present at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. AppNeta is the only application performance monitoring (APM) company to provide solutions for all applications – applications you develop internally, business-critical SaaS applications you use and the networks that deli...
Feb. 13, 2016 11:30 AM EST Reads: 442
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...
Feb. 13, 2016 11:30 AM EST Reads: 153
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
Feb. 13, 2016 11:00 AM EST
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
Feb. 13, 2016 11:00 AM EST
SYS-CON Events announced today that iDevices®, the preeminent brand in the connected home industry, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. iDevices, the preeminent brand in the connected home industry, has a growing line of HomeKit-enabled products available at the largest retailers worldwide. Through the “Designed with iDevices” co-development program and its custom-built IoT Cloud Infrastruc...
Feb. 13, 2016 11:00 AM EST Reads: 145
The cloud competition for database hosts is fierce. How do you evaluate a cloud provider for your database platform? In his session at 18th Cloud Expo, Chris Presley, a Solutions Architect at Pythian, will give users a checklist of considerations when choosing a provider. Chris Presley is a Solutions Architect at Pythian. He loves order – making him a premier Microsoft SQL Server expert. Not only has he programmed and administered SQL Server, but he has also shared his expertise and passion w...
Feb. 13, 2016 10:30 AM EST