American Eagle Acquires Knapp US Oil Asset

American Eagle Energy is to acquire a 2km² leasehold position owned by Knapp in Montana, US.

The firm plans to conduct a 3D seismic survey on the prospect to define the prospect area fully and guide the initial well location.

The drilling of the vertical development well is scheduled to begin in the third quarter of 2011.

American Eagle Energy president and CEO Richard Findley said the acquisition of the low-risk, high-potential, conventional Nisku Formation prospect provides a valuable addition to American Eagle’s portfolio of projects.

“The ability to develop this light oil prospect quickly with limited capital exposure and potential for immediate, positive cash flow make it a good fit with our ongoing large Bakken resource plays that we are pursuing in the Williston and Alberta Basins,” Findley said.