American Eagle Energy and partner Big Sky Operating have entered into joint participation agreement with FX Energy to expand and exploit the Bakken source system play in the Southern Alberta Basin, US.
The three firms have agreed to pool their leasehold positions and equalise their respective working interests in the Bakken play.
FX Energy operates a 40km² area in the Southwest Cut Bank Sand Unit and will contribute the deep rights on that acreage to the venture.
The acreage and additional leased acquired by Big Sky will increase the total acreage controlled by the group to 303km².
American Eagle will begin the initial evaluation and testing in the second quarter of 2011, drilling up to three vertical evaluation wells and at least one horizontal test well in 2011.
