The transaction is expected to close on June 25, 2010. Eternal and AEE have further agreed to execute an operating agreement in the next 30 days, under which Eternal will manage and oversee all future exploration and production activities for both the Hardy and Spyglass Prospects.
Brad Colby, president and CEO of Eternal, said: “We are pleased to announce our alliance with American Eagle Energy, as well as our newly acquired interest in Divide County. The exchange of a portion of our working interest in the Hardy Prospect for a working interest in the Spyglass not only diversifies our holdings, but also partners us with an entity that is like-minded with respect to the exploration of the Bakken and Three-Forks formations in North Dakota.
“We hope to announce plans either to re-enter the existing well or drill a new, exploratory well in the Hardy Prospect, as well as plans to drill an exploitation well in the Spyglass prospect, in the near future.”
