American Eagle Energy to Merge with Eternal Energy

Eternal Energy will form a wholly owned subsidiary into which American Eagle Energy will merge, under a new letter of intent with the firm.

Eternal Energy expects the merger to reduce the number of outstanding shares of common stock resulting from the merger transaction.

Eternal Energy will merge the low-risk Bakken and Three Forks prospects in North Dakota and Saskatchewan, US, with American Eagle Energy’s significant acreage positions in the Alberta Bakken play and its other prospect inventory.

Eternal Energy president and CEO Brad Colby said combining the assets and management teams of both firms will increase stockholder value.