American Eagle Energy Corporation (AMZG) is engaged in the exploration and production of petroleum and natural gas in North America . Currently, American Eagle is focused primarily on exploiting unconventional resource plays within the Bakken and Three Forks formations. The Company operated under the name Eternal Energy Corp. until December 2011 when it changed its name to American Eagle Energy Corporation upon its acquisition of American Eagle Energy Inc., another oil and gas company engaged in a similar business with which the Company shared certain properties and prospects.
On May 21, 2013, the company provided first quarter 2013 results and an operations update.
First Quarter 2013 Highlights
- Revenues from oil and gas sales for the period ended March 31, 2013 were $7,628,707 , an increase of 522% from the $1,225,579 reported for same period in 2012.
- Wells in the United States accounted for 95.2% of first quarter 2013 sales.
- Net income of $355,347 for the quarter ended March 31, 2013 compared to a net loss of ( $358,335 ) for the same quarter in 2012.
- Income per share for the quarter was $0.01 compared to a loss of ( $0.01 ) for the same quarter in 2012.
- The Company reported a non-cash impairment expense of $1,525,027 on their Canadian oil and gas property (“Hardy”) due to lower than anticipated production volumes.
- Excluding the non-cash impairment expense recognized on the Hardy Property, operating income for the quarter ending March 31, 2013 would have been $3,352,686 compared to an operating loss of ( $656,466 ) for the three month period ending March 31, 2012 .
- Net oil and gas revenues, calculated as oil and gas revenues less oil and gas production costs, rose to $5,980,173 for the first quarter of 2013 compared to $819,023 for the same quarter in 2012.
- Earnings before interest, taxes, depreciation and amortization (EBITDA) for the three months ending March 31, 2013 was $4,665,729 compared to a loss of ( $338,985 ) for the same quarter in 2012.
As of March 31, 2013 , the Company has successfully drilled and completed 13 wells in its Spyglass Project in Divide County, ND in which the Company owns an average working interest of approximately 41% and is the operator. An additional six operated wells have been drilled and cased and are awaiting completion. All six of these wells are expected to be completed and put on production in the 2nd quarter. The Company has also elected to participate as a non-operated working interest partner in 60 wells in Divide County, ND. As of the end of the first quarter, 46 of these are producing wells. The Company has working interests ranging from 0.03% to 28.22%.
The Company operates three wells and participates as a non-operating working interest partner in a fourth well located in Southeastern Saskatchewan, the Hardy Property. Although these wells generate a positive cash flow, the overall financial results are significantly less favorable than those in our Spyglass Project, which has resulted in a non-cash impairment charge for this quarter of $1,525,027 . Accordingly the Company will continue to evaluate the performance of the Hardy wells.
[sam_ad id=”32″ codes=”true”]
Management Comments
Mr. Brad Colby , President of American Eagle, said, “We recently reported a very successful year for 2012 and it’s a pleasure to follow up on that with the results we’ve generated in the first quarter of 2013. Even with the impairment charge against our Hardy Property in Canada , we were able to deliver significant quarter-over-quarter growth in production, revenue, operating income, net income and stockholder equity. With six wells awaiting completion and one drilling rig working full time in Spyglass, we expect this trend of meaningful growth in all important categories to continue.”
Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. The company or companies covered in this note did not review the note prior to publication. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. As of the report date, neither EnerCom nor any of its employees has a financial interest in any equity or debt of any company mentioned in this report.
