American Eagle adds Williston acreage, initiated with Buy at Canaccord

|About: American Eagle Energy, Inc. (AMZG)|By:, SA News Editor

American Eagle Energy (AMZG +3.6%) says it closed the second part of a previously announced acquisition in its Spyglass area in the Williston Basin and purchased an additional ~7.7K acres in Spyglass for $11.3M.

AMZG estimates the acquisition represents ~$20M of potential pre-tax PV-10 proved reserves and ~$27M of potential pre-tax PV-10 probable reserves.

Canaccord initiated AMZG with a Buy rating and $10 price target of $10, citing the company's inventory of relatively low-risk, high return Bakken/Three Forks well locations in the Williston Basin.