American Eagle Energy Corporation closed on a Senior Credit Facility ("Credit Facility") with Morgan Stanley Capital Group Inc. The Credit Facility is a senior secured reserve based credit facility with a maximum potential commitment of up to $200 million. Initially, $68 million is committed and available for funding. An additional $40 million is earmarked for the purpose of purchasing additional interests in the Spyglass Project area from a joint venture partner ("Spyglass Transaction"). The availability of the $40 million is contingent upon the closing of the Spyglass Transaction and the Company meeting certain financial covenants and conditions precedent. An additional $92 million is initially uncommitted.

The Company plans to draw the full $68 million available to retire the Macquarie Bank Limited swap facility, which it entered into at the end of last year, for approximately $18 million and to pay fees and expenses associated with the Credit Facility. American Eagle will use the remaining proceeds for working capital, to fund the Company's well development program, to acquire additional acreage, and for other general corporate purposes.

The Credit Facility has a five-year term and carries a variable interest rate ranging from approximately 5.5% to 10.5%. The variable interest rate is based primarily on the ratio of the Company's proved developed reserves to its debt for a given period. As of the closing, the applicable variable interest rate on the Credit Facility is 10.5%. The Credit Facility is collateralized by, among other things, the Company's oil and gas properties and future oil and gas sales derived from such properties, and contains various financial and operational covenants that are typical of such borrowing agreements. The Company did not provide royalty consideration in connection with the Credit Facility.

David Lazarus, Executive Director, Morgan Stanley Capital Group Inc., stated, "We are excited to provide American Eagle Energy with a new credit facility that meets the company's current needs while also providing future flexibility.  We look forward to working with management as it continues to grow American Eagle's assets."

Brad Colby, President and CEO of American Eagle, said, "We are thrilled to have Morgan Stanley as our lender. As we grow our proved reserves, the credit facility allows us the opportunity to increase our availability and/or to decrease our interest rate. We believe the structure of the new credit facility is a great fit for American Eagle as we continue to develop our Spyglass Project area in northwestern Divide County, North Dakota."

American Eagle Energy Corporation is an independent exploration and production operator that is focused on acquiring acreage and developing wells in the Williston Basin of North Dakota and Montana, targeting the Bakken and Three Forks shale oil formations.