Minton Bakken Project
The Minton Bakken Project abuts the Hardy Bakken Project area directly to the south. A structure map on the Bakken shows a structural nose extending south of Hardy and continuing throughout the Minton Bakken Project area. The Minton area contains multiple Bakken penetrations that were drilled primarily to test the deeper Winnipegosis and Red River Formations, much the same as in the Hardy area. These wells document Bakken reservoir quality similar to that in the Hardy Field area.
American Eagle owns a 50% working interest position in three large farm-in blocks covering a total of 34 sections of land or approximately 21,760 acres. American Eagle plans to participate for its interest in two horizontal Bakken earning wells, on two separate farm-in blocks, to earn a 32.5% interest after payout in 10 sections of land. Following the completion of the two earning wells, American Eagle will have a continuous rolling option to drill and earn additional sections under the same terms and conditions as the two initial wells.
The Minton Bakken Project carries some additional risk relative to the Hardy Bakken Project, since no Bakken production has been established at this time. However, the initial horizontal test well at Minton will directly offset an earlier well that cored the upper part of the Bakken, documenting similar or better reservoir quality than the original Hardy discovery well with excellent oil shows.
The first test well at Minton is scheduled to begin in the second quarter of 2012. A successful drilling program at Minton has the potential to meet or exceed the potential of the currently established Hardy Bakken Project.