10-K/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K/A

(Mark one)

x ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the fiscal year ended December 31, 2011

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the transition period from                    to

Commission File No: 000-50906

AMERICAN EAGLE ENERGY CORPORATION

(Exact Name of Registrant as Specified in its Charter)

Nevada	20-0237026
(State or Other Jurisdiction	(I.R.S. Employer
of Incorporation or Organization)	Identification No.)

2549 W. Main Street, Suite 202
Littleton, Colorado	80120
(Address of Principal Executive Offices)	(Zip Code)

(303) 798-5235

(Registrant’s Telephone Number, Including Area Code)

Securities registered under Section 12(b) of the Exchange Act: None

 Securities registered under Section 12(g) of the Exchange Act: Common Stock, $0.001 par value

Indicate by check mark if the registrant is a well-known seasonal issuer, as defined in Rule 405 of the Securities Act.

Yes ¨ No x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes   ¨ No x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  

Yes x No ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.

¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a small reporting company.

Large accelerated filer	¨	Accelerated Filer	¨
Non-accelerated filer	¨	Smaller reporting company	x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

Yes ¨ No x

The aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant, computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of June 30, 2011, the last business day of the registrant’s most recently completed second fiscal quarter, was $12,974,923.00.

The number of shares outstanding of the registrant’s common stock as of March 4, 2013 was 49,842,778.

AMERICAN EAGLE ENERGY CORPORATION

TABLE OF CONTENTS

		Page
	PART I
Item 1.	Business.	3
Item 2.	Properties.	14
Item 3.	Legal Proceedings.	15
Item 4.	Mine Safety Disclosure.	15
	PART II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchase of Equity Securities.	15
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	16
Item 8.	Financial Statements and Supplementary Data.	28
Item 9.	Changes In and Disagreements With Accountants on Accounting and Financial Disclosure.	28
Item 9A.	Controls and Procedures.	29
Item 9B	Other Information.	29
	PART III
Item 10.	Directors, Executive Officers and Corporate Governance.	30
Item 11.	Executive Compensation.	34
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.	36
Item 13.	Certain Relationships and Related Transactions, and Director Independence.	38
Item 14.	Principal Accountant Fees and Services.	38
	PART IV
Item 15.	Exhibits, Financial Statement Schedules.	40
	SIGNATURES	44
	FINANCIAL STATEMENTS AND NOTES	F-1

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EXPLANATORY NOTE

In connection with the Securities and Exchange Commission’s (the “SEC”) standard review process of reporting issuers’ periodic reports, we received and responded to a series of comments from the SEC on February 21, 2013. This Amendment to our Annual Report on Form 10-K for the year ended December 31, 2011, originally filed with the SEC on April 16, 2012, and as amended and filed with the SEC on February 21, 2013, amends Part IV, Item 15: Exhibits, Financial Statement Schedules to add Exhibit No. 23.1 and Exhibit No. 99.1. Pursuant to Rule 12b-15 under the Securities Exchange Act of 1934, new certifications of our principal executive officer and principal financial officer are being filed as exhibits to this Form 10-K/A.

PART I

Item 1. Business.

Corporate History

American Eagle Energy Corporation (“we,” “our,” “us” or the “Company”) was incorporated in Nevada on July 25, 2003, to engage in the acquisition, exploration, and development of natural resource properties. On November 7, 2005, we and a then-newly-formed, wholly-owned subsidiary formed for that purpose completed a merger transaction with us as the surviving corporation (the “2005 Merger”). In connection with the 2005 Merger, we changed our name to “Eternal Energy Corp.” from our original name, “Golden Hope Resources Corp.”

On December 20, 2011, we, a newly-formed merger subsidiary (“Merger Sub”), and American Eagle Energy Inc. (“AEE Inc.”) consummated the final steps of a merger transaction (the “2011 Merger”), whereby Merger Sub merged with and into AEE Inc., with AEE Inc. surviving as our wholly-owned subsidiary. Following the initial step of the 2011 Merger, AEE Inc. changed its name from “American Eagle Energy Inc.” to “AMZG, Inc.” In the 2001 Merger, each share of AEE Inc. was converted into 3.641 shares of our common stock, $0.001 par value, per share, which resulted in the issuance of 164,144,426 shares of our common stock. Immediately following the consummation of the 2011 Merger, we declared a one-for-four and one-half reverse split of our common stock. The reverse split reduced the number of shares of our common stock then issued and outstanding to 45,588,948. The retroactive effect of this reverse split has been applied to all share data included in this Annual Report.

In connection with the 2011 Merger, we changed our name to “American Eagle Energy Corporation” from “Eternal Energy Corp.”

Business Overview

Since the 2005 Merger, we have been engaged in the exploration for petroleum and natural gas in the States of Nevada, Utah, Texas, Colorado, and North Dakota, the North Sea, and southeastern Saskatchewan, Canada, through the acquisition of contractual rights for oil and gas property leases and the participation in the drilling of exploratory wells.

In the fourth quarter of 2006, we entered into a series of agreements that resulted in our acquisition of 15% of the capital stock of Pebble Petroleum, Inc. (“Pebble”), as well as the following rights and interests in the Pebble Beach Project in western Canada:

· a USD$250,000 spud fee for each of the first eight wells drilled by Pebble on the Pebble Beach Project;

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· a five percent gross overriding royalty from each well drilled on certain acreage that Pebble holds rights to in western Canada (we are not required to make any capital outlay or pay other expenses); and

· a 10% interest in a joint venture with a subsidiary of Pebble; the joint venture will explore and develop certain prospects located in the northern United States (we pay 10% of all costs incurred) (collectively, the “Interests”).

Through a series of subsequent capital transactions completed by Pebble, our equity investment in Pebble was diluted to five percent.  In May 2007, we sold our stock in Pebble to a company then known as Heartland Resources Inc., a petroleum and natural gas exploration company whose shares were then listed on the TSX-Venture Exchange.

In August 2007, Heartland Resources Inc. changed its name to Ryland Oil Corporation (“Ryland”).  During the succeeding several years, Ryland acquired approximately 355,009 gross and net acres in the Pebble Beach Project in which we owned a five percent gross overriding royalty.  In addition, Ryland’s U.S. subsidiary acquired approximately 61,412 gross and 35,145 net acres in the Pebble Beach Project in the northern United States, in which we owned a 10% working interest.  Ryland drilled eight wells on the project, for which we were paid an aggregate of $2,000,000 in spud fees during 2008 and 2009. In May 2011, we sold half of our 10% working interest in certain acreage included in the Pebble Beach Project to a third-party for cash consideration, net of finder’s fees, totaling $227,079.

Beginning in May 2007, we entered into a series of agreements to acquire a 75% working interest in the SW extension of the West Ranch Field (the “West Ranch Property”) in Jackson County, Texas.

In December 2007, initial work to implement the first phase of a field wide waterflood of the Glasscock formation was commenced.  The initial phase consisted of the use of four injector wells.  The first phase of work was expected to be completed by the end of January 2008; however, field work was delayed when it was determined that two of the four injector wells had previously been used to dispose of waste water and other drilling material resulting in wellbore damage.  In August 2009, certain leases included in the West Ranch Field expired and, as a result, the reserves associated with these leases contained in the Glasscock Reservoir were no longer available to us.  These leases were pivotal to the implementation of the waterflood program designed to stimulate production throughout the West Ranch Property.

In the fourth quarter of 2007, we entered into a series of agreements with a related party to acquire the right to pursue a down-hole gas/water separation (“DGWS”) opportunity, primarily in western Canada, at which time we formed a wholly-owned subsidiary in Canada, EERG Energy, ULC, to pursue this opportunity.  During 2008, we failed to drill the required number of wells stipulated by the DGWS agreements and, as a result, lost our exclusive right to utilize the DGWS technology.  In December 2008, the option to extend the technology licenses was mutually terminated by us and the related party.  EERG Energy, ULC now holds our investment in Canadian oil and gas leases.

During 2008, two exploratory wells were drilled in an area in Southeastern Saskatchewan in which we own gross overriding royalty interests.  In February 2009, we began receiving royalty payments relating to our gross overriding royalty interest.  Two additional exploratory wells were drilled in 2009, which also resulted in our receiving royalty payments based on our gross overriding royalty interest.

Effective April 1, 2010, we sold all of our gross overriding royalty interest in the Saskatchewan acreage to Ryland.  Total consideration received included $2.9 million in cash, 2,145,883 shares of Ryland’s common stock, which were valued at approximately $874,973 as of the date of sale, and an assignment of Ryland’s 100% working interest in approximately 4,480 net acres located in southeastern Saskatchewan, Canada (the “Hardy Property”), and related equipment, valued at $238,681.

Also effective April 1, 2010, we sold our 10% working interest in approximately 700 net acres located in North Dakota to a subsidiary of Ryland, Rover Resources Inc., for $1 million in cash.

January 21, 2010, AEE Inc. entered into an Assignment Agreement with Murrayfield Limited, a United Kingdom company, regarding the acquisition of a working interest in an oil and gas lease in Willacy County, Texas, known as the Sauz Ranch Prospect (the “Leasehold Assignment”).  Miramar Petroleum Inc. and Murrayfield had entered into an Assignment of Oil and Gas Lease, dated August 28, 2009, pursuant to a Lease Purchase and Development Agreement, dated August 5, 2009, wherein Murrayfield acquired from Miramar certain interests regarding a leasehold interest in Willacy County, Texas.  Murrayfield assigned its interest in the lease to AEE Inc. for $137,500, which consists of the turnkey costs paid by Murrayfield to Miramar for the acquisition of its interest.

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With the Leasehold Assignment, AEE Inc. acquired a 12.5% working interest in an oil and gas lease in Willacy County, Texas.  The lands covered by the lease consist of 908 acres out of the San Juan de Carrieitos, Willacy County, Texas, which covers an undivided 29/32nd of the mineral estate.  The area is also subject to another oil and gas lease owned by Exxon Mobil Corporation for the remaining 3/32nds.

In June 2010, we sold our 75% working interest in the West Ranch Field for cash consideration totaling $262,500 and the assumption, by the purchaser, of all plugging, abandonment, and environmental reclamation liabilities.

In the fourth quarter of 2010, we began our current drilling activity targeting the Bakken and Three Forks Formations in Divide County, North Dakota. For more information about our working interests in the Bakken and Three Forks Formations, see “Properties” below on page 13 for a discussion of the wells in which we have elected to participate that are located in this area.

On January 31, 2011, AEE Inc. entered into a Lease Acquisition Agreement with Americana Exploration LLC and Big Sky Operating LLC to acquire an undivided 66.67% working interest in approximately 47,392 net acres located in Toole County, Montana for cash consideration of $1,235,684.

In May 2011, we entered into a Purchase and Sale Agreement with AEE Inc. and an unrelated third party for the sale by us and AEE Inc. of one-half of our respective 50% working interests in approximately 8,948 net acres located primarily in Divide County, North Dakota (the “Spyglass Project”).  The initial closing of the transactions occurred on May 26, 2011 and resulted in the sale of an undivided 50% interest in approximately 8,118 net acres for net cash consideration of 6,913,920, which was divided equally between us and AEE Inc.  A second closing related to the transaction occurred on August 5, 2011 and resulted in the sale of an undivided 50% interest in approximately 760 additional net acres for net cash consideration totaling 641,666, which was divided equally between us and AEE Inc.  The Purchase and Sale Agreement also provided for the sale by us of an undivided 50% interest in approximately 269 net acres located within the Spyglass Project (as defined under “Properties” below on page 13) in Divide County, North Dakota for net cash consideration totaling 227,079.  The closing of this sale occurred on August 5, 2011.  Post-closing, we retained a 50% working interest in the Spyglass Project.

On November 18, 2011, we entered into a Purchase and Sale Agreement with AEE Inc. and a third-party purchaser, pursuant to which we and AEE Inc. agreed to sell to the purchaser an aggregate of 75% of approximately 10,521 aggregate net acres located in Western Divide County, North Dakota, and eastern Sheridan County, Montana (the “West Spyglass Project”), a region known for its Bakken and Three Forks zone oil production.  The initial closing of the sale occurred on December 14, 2011, with the payment of $10,913,096, to be split equally us and AEE Inc.  A subsequent closing for certain of the remaining net acreage is expected in Spring 2012.  Post-closing, we retained a 25% working interest in the West Spyglass Project acreage and will remain the operator on that acreage.

In addition, subject to the expiration of a previously granted ten-day preferential sale right, we agreed to sell to the same third-party purchaser 75% of 1,440 net acres in our Spyglass Project, for cash consideration of $1,889,974, which funds were received in January 2012.  Post-closing, we will remain the operator on the West Spyglass Project.

Effective April 15, 2011, we and AEE Inc., entered into a farmout agreement with Passport Energy Ltd. (“Passport”), whereby Passport agreed to fund 38.5% of the drilling, completiing, and equipping costs of up to two future wells located within the Hardy Property in exchange for a 25% working interest in each well.  We retained the remaining working interest.

In May 2011, we and Passport successfully drilled and completed the Hardy 4-16 well, an offset well located within the Hardy Property.  A 29-stage fracture stimulation of the Hardy 4-16 well was completed in July 2011 and was placed on production during September 2011.

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In December 2011, we and Passport modified our existing farmout agreement to reduce Passport’s interest in the second well to 23.1% of all drilling related costs and 15% of all lease operations expenses and corresponding revenues, and commenced drilling of the Hardy 14-17 well, a second well within the Hardy Project. The Hardy 14-17 well is expected to be completed in April 2012.

Competitors

The oil and gas industry is intensely competitive. We compete with numerous individuals and companies, including many major oil and gas companies, which have substantially greater technical, financial, and operational resources and staffs. Accordingly, there is a high degree of competition for desirable oil and gas leases and farmin and farmout agreements, suitable properties for drilling operations, and necessary drilling and completion equipment and services, as well as for access to funds. There are other competitors that have operations in the various areas of Bakken and Three Forks reserves and the presence of these competitors could adversely affect our ability to acquire additional leases and farmin and farmout agreements.

Hydraulic Fracturing

We have drilled and completed one well since July 2010. That well, the Hardy 4-16 well, is a horizontal well that was completed using hydraulic fracturing as one step of the completion process designed to improve the productivity of the well. We are currently in the process of drilling and completing two additional wells, each of which will be stimulated using hydraulic fracturing techniques. We have contracted with industry-standard third-party specialists for both the drilling and completion phases of these wells. To date, there have not been any environmental or safety incidents, citations, or suits related to the hydraulic fracturing operations used as part of the completion of these wells.

As part of the process of drilling exploratory or producing wells, we currently expect that substantially all of the horizontal wells that we may cause to be drilled will be completed using hydraulic fracturing techniques. We will use industry-standard, long-established third-party service providers for such endeavors. When we initiate any new well in the future, we will determine in advance whether it will be hydraulically fractured and, if so, we will include in the planning and budgetary process all costs associated with the fracture treatment. The costs of a well vary based on the depth to which it will be drilled, its horizontal length, and the completion technique to be used, which will include the added expenditure for the fracture treatment, as well as all related environmental and safety considerations.

Because we contract with industry-standard, long-established third-party service providers for all drilling, casing, and cementing services, we depend upon their industry expertise, safety processes, and best practices for conducting those operations. Our management, and that of our advisors, has significant, long-term experience with the engineering required to determine where and how a well should be drilled and whether the well should be hydraulically fractured as part of the completion process. Accordingly, we believe that we will be able to determine whether our third-party service providers are utilizing proper drilling and completion techniques. Nevertheless, we will rely on them, in the case of fracturing services, to:

· monitor the rate and pressure of the fracturing treatment in real time for any abrupt change in rate or pressure;

· evaluate the environmental impact of additives to the hydraulic fracturing fluid;

· minimize the use of water during the fracturing process; and

· dispose of any produced water in a manner that avoids any impact on other resources and is in full compliance with all federal, state, and local governmental regulations.

We and our third-party service providers are insured as to various drilling and environmental risks. Our well insurance policy limits are $5,000,000 in each individual instance with a deductible of $100,000. Our environmental liability policy limit is $1,000,000 per individual instance with a deductible of $100,000. Historically, we have not had any indemnification obligations in favor of those entities to whom we sell the oil that is produced from our wells and we do not expect to incur any such obligations in the future. Prior to the closing of the 2011 Merger, AEE Inc. and we, as co-working interest owners, have had reciprocal indemnification obligations to each other.

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We rely fully on our third-party service providers to establish and carry out procedures to cope with any negative environmental impact that could occur in the event of a spill or leak in connection with their hydraulic fracturing services. The third-party service providers would be responsible for costs arising out of any surface spillage, mishandling of fluids, or leakage from their equipment, including chemical additives.

The specific chemical composition of the fluids utilized by the third-party service providers in hydraulic fracturing operations are expected to vary by project and by provider; however, we expect that the chemical composition of such fluids will meet industry standards and will be utilized in a manner that conforms to all relevant federal, state, and local rules and regulations.

In order to prevent the underground migration of fracture fluids, we, and we expect our third party service providers to, follow industry-standard practices in respect of casing, cementing, and testing to ensure good physical isolation of the fractured interval from other sections of the well. Our well construction processes and procedures conform to all relevant federal, state, and local rules and regulations. We believe that the large thickness of rock formations between the fractured interval and any potable water sources will minimize the risk of underground migration of fracture fluids. We would generally be responsible for any costs resulting from underground migration of fracture fluids, and we are not fully insured against this risk. The occurrence of a significant event resulting from the underground migration of fracture fluids or surface spillage, mishandling, or leakage of fracture fluids could have a materially adverse effect on our financial condition and results of operations. To date, there have been no such incidents, nor have the members of our management team encountered such an incident in their long-term experience in this industry.

Government Regulations

Our oil and gas operations are subject to various United States and Canadian federal, state / provincial, and local governmental regulations. Matters subject to regulation include discharge permits for drilling operations, drilling, and abandonment bonds, reports concerning operations, the spacing of wells, and pooling of properties and taxation. From time to time, regulatory agencies have imposed price controls and limitations on production by restricting the rate of flow of oil and gas wells below actual production capacity in order to conserve supplies of oil and gas. The production, handling, storage, transportation, and disposal of oil and gas, by-products thereof, and other substances and materials produced or used in connection with oil and gas operations are also subject to regulation under federal, state, provincial, and local laws and regulations relating primarily to the protection of human health and the environment. To date, expenditures related to complying with these laws, and for remediation of existing environmental contamination, have not been significant in relation to the results of our operations. The requirements imposed by such laws and regulations are frequently changed and subject to interpretation, and we are unable to predict the ultimate cost of compliance with these requirements or their effect on our operations. For information about hydraulic fracturing regulatory matters, see “Risk Factors – Federal and state legislative and regulatory initiatives relating to hydraulic fracturing could result in increased costs, additional operating restrictions or delays, and inability to book future reserves.”

Research and Development

Our business plan is primarily focused on acquiring prospective oil and gas leases and/or operating existing wells located in the United States and Canada. We have expended zero funds on research and development in each of our last two fiscal years. We have developed and are in the process of implementing a future exploration and development plan. 

Employees

As of April 16, 2012, our management team consists of Bradley M. Colby, our President, Chief Executive Officer, and Treasurer, Thomas Lantz, our Chief Operating Officer, Kirk Stingley, our Chief Financial Officer, and Richard Pershall, our Operations Manager. We currently have nine full-time operations and administrative employees and engage a full-time contract-based land consultant. We do not expect any material changes in the number of our employees over the next 12-month period. We do and will continue to outsource contract employment as needed. However, if we are successful in our initial and any subsequent drilling programs we may retain additional employees.

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Item 1A. Risk Factors.

The information in this Annual Report on Form 10-K includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements are statements other than statements of historical or present facts, that address activities, events, outcomes, and other matters that the Company plans, expects, intends, assumes, believes, budgets, predicts, forecasts, projects, estimates, or anticipates (and other similar expressions) will, should, or may occur in the future. Generally, the words “expects,” “anticipates,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “may,” “will,” “could,” “should,” “future,” “potential,” “continue,” variations of such words, and similar expressions identify forward-looking statements. These forward-looking statements are based on our current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events.

These forward-looking statements appear in a number of places and include statements with respect to, among other things:

· estimates of our oil and gas reserves;

· estimates of our future oil and natural gas production, including estimates of any increases or decreases in our production;

· our future financial condition and results of operations;

· our future revenues, cash flows and expenses;

· our access to capital and our anticipated liquidity;

· our future business strategy and other plans and objectives for future operations;

· our outlook on oil and gas prices;

· the amount, nature and timing of capital expenditures, including future development costs, and availability of capital resources to fund capital expenditures;

· our ability to access the capital markets to fund capital and other expenditures;

· the impact of political and regulatory developments;

· our assessment of our counterparty risk and the ability of our counterparties to perform their future obligations; and

· the impact of federal, state and local political, regulatory and environmental developments in the United States and certain foreign locations where we conduct business operations.

These forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond the Company’s control, incident to the exploration for and development, production, and sale of oil and gas. These risks include, but are not limited to, commodity price volatility, inflation, lack of availability of drilling and production equipment and services, environmental risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in estimating proved oil and natural gas reserves and in projecting future rates of production, cash flow and access to capital, the timing of development expenditures, and the other risks described herein under “Risk Factors.”

Reserve engineering is a process of estimating underground accumulations of oil and natural gas that cannot be measured in an exact way. The accuracy of any reserve estimates depends on the quality of available data, the interpretation of such data, and price and cost assumptions made by reservoir engineers. In addition, the results of drilling, testing, and production activities may justify revisions of estimates that were made previously. If significant, such revisions would change the schedule of any further production and development drilling. Accordingly, reserve estimates may differ significantly from the quantities of oil and natural gas that are ultimately recovered.

We may not realize the benefits of the 2011 Merger.

There are significant risks and uncertainties associated with our recent merger with AEE Inc. We need to combine and integrate our operations and AEE Inc.’s operations into one company effectively and efficiently. Integration will require substantial management attention and could detract attention from the day-to-day business of the combined company. We could encounter difficulties in the integration process, such as the need to revisit assumptions about reserves, future production, revenues, capital expenditures, and operating costs, including synergies, the loss of key employees or commercial relationships or the need to address unanticipated liabilities. If we cannot continue to integrate our businesses and AEE Inc.’s businesses successfully, we may fail to realize the expected benefits of the 2011 Merger.

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Re-sales of a substantial number of shares of our common stock in the public market after the 2011 Merger could materially adversely affect the market price of common stock.

In connection with closing the 2011 Merger, we issued to AEE Inc.’s stockholders approximately 36,476,539 shares of our common stock, substantially all of which will have no restrictions on resale. The re-sale of a substantial number of shares of our common stock may result in substantial fluctuations in the price of our common stock. In addition, the re-sale of a substantial number of shares of our common stock within a short period of time could cause our stock price to fall. The sale of those shares could also impair our ability to raise capital through sales of additional shares of our common stock.

There is no assurance that we will operate profitably or will generate positive cash flow in the future.

If we cannot generate positive cash flows in the future, or raise sufficient financing to continue our normal operations, then we may be forced to scale down or even close our operations.  In particular, additional capital may be required in the event that drilling and completion costs for further wells increase beyond our expectations, or that we encounter greater costs associated with general and administrative expenses or offering costs. The occurrence of any of the aforementioned events could adversely affect our ability to meet our business plan.

We will depend heavily on outside capital to pay for the continued exploration and development of our properties.  Such outside capital may include the sale of additional stock and/or commercial borrowing.  Capital may not continue to be available if necessary to meet these continuing exploration and development costs or, if capital is available, it may not be on terms acceptable to us.  The issuance of additional equity securities by us would result in a significant dilution in the equity interests of our current stockholders.  Obtaining commercial loans, assuming those loans would be available, will increase our liabilities and future cash commitments.

If we are unable to obtain financing in the amounts and on terms deemed acceptable to us, we may be unable to continue our business and as a result may be required to scale back or cease operations for our business, the result of which would be that our stockholders would lose some or all of their investment.

A decline in the price of our common stock could affect our ability to raise further working capital and adversely impact our operations.

A prolonged decline in the price of our common stock could result in a reduction in the liquidity of our common stock and a reduction in our ability to raise capital.  Because our operations have been primarily financed through the sale of equity securities, a decline in the price of our common stock could be especially detrimental to our liquidity and our continued operations.  Any reduction in our ability to raise equity capital in the future would force us to reallocate funds from other planned uses and would have a significant negative effect on our business plans and operations, including our ability to develop new projects and continue our current operations.  If our stock price declines, we may not be able to raise additional capital or generate funds from operations sufficient to meet our obligations.

If we are not successful in continuing to grow our business, then we may have to scale back or even cease our ongoing business operations.

Our success is significantly dependent on a successful acquisition, drilling, completion, and production program.  We may be unable to locate recoverable reserves or operate on a profitable basis.  If our business plan is not successful, and we are not able to operate profitably, our investors may lose some or all of their investment.

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Trading of our stock may be restricted by the SEC’s “Penny Stock” regulations, which may limit a stockholder’s ability to buy and sell our stock.

The SEC has adopted regulations that generally define “penny stock” to be any equity security that has a market price (as defined) less than $5.00 per share.  Our securities are covered by the penny stock rules, which impose additional sales practice requirements on broker-dealers who sell to persons other than established customers or “accredited investors.”  The term “accredited investor” refers generally to institutions with assets in excess of $5,000,000 or individuals with a net worth in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly with his or her spouse.  The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document in a form prepared by the SEC, which provides information about penny stocks and the nature and level of risks in the penny stock market.  The broker-dealer also must provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction and monthly account statements showing the market value of each penny stock held in the customer's account.  The bid and offer quotations, and the broker-dealer and salesperson compensation information, must be given to the customer orally or in writing prior to effecting the transaction and must be given to the customer in writing before or with the customer’s confirmation.  In addition, the penny stock rules require that, prior to a transaction in a penny stock not otherwise exempt from these rules, the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser’s written agreement to the transaction.  These disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for the stock that is subject to these penny stock rules.  Consequently, these penny stock rules may affect the ability of broker-dealers to trade our securities.  We believe that the penny stock rules may discourage investor interest in, and limit the marketability of, our common stock.

FINRA sales practice requirements may also limit a stockholder’s ability to buy and sell our stock.

In addition to the “penny stock” rules described above, FINRA has adopted rules that require that in recommending an investment to a customer, a broker-dealer must have reasonable grounds for believing that the investment is suitable for that customer.  Prior to recommending speculative low priced securities to their non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the customer’s financial status, tax status, investment objectives and other information.  Under interpretations of these rules, FINRA believes that there is a high probability that speculative low priced securities will not be suitable for at least some customers.  FINRA requirements make it more difficult for broker-dealers to recommend that their customers buy our common stock, which may limit your ability to buy and sell our stock and have an adverse effect on the market for our shares.

Trading in our common shares on the OTC Bulletin Board and OTC Markets Group, Inc.’s OTCQB tier has been volatile, making it more difficult for our stockholders to sell their shares or liquidate their investments with predictability.

Our common stock is currently quoted on the OTC Bulletin Board and OTC Markets Group, Inc.’s OTCQB tier.  The trading price of our common stock has been subject to wide fluctuations.  Trading prices of our common stock may fluctuate in response to a number of factors, many of which will be beyond our control.  The stock market has generally experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of companies with no current business operation.  There can be no assurance that trading prices and price earnings ratios previously experienced by our common shares will be matched or maintained.  These broad market and industry factors may adversely affect the market price of our common shares, regardless of our operating performance.

In the past, following periods of volatility in the market price of a company’s securities, securities class-action litigation has often been instituted.  Such litigation, if instituted, could result in substantial costs for us and a diversion of management’s attention and resources.

Our securities are considered highly speculative.

Our securities must be considered highly speculative, generally because of the nature of our business and the early stage of our exploration and development operations.  We are engaged in the business of exploring and, if warranted, developing commercial reserves of oil and gas.  All of our material properties, except one, are in the exploration stage only and are without known reserves of oil and gas.  Accordingly, we have neither generated any material revenues nor realized a profit from our operations to date and there is little likelihood that we will generate any material revenues or realize any profits in the short term.  Any profitability in the future from our business will be dependent upon locating and developing economic reserves of oil and gas, which itself is subject to numerous risk factors as set forth herein.  Since we have not generated any material revenues, we expect that we will need to raise additional monies through the sale of our equity securities or debt in order to continue our business operations.

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As substantially all of our properties are in the exploration stage, there can be no assurance that we will establish commercial discoveries on our properties.

Exploration for economic reserves of oil and gas is subject to a number of risk factors.  Few properties that are explored are ultimately developed into producing oil and/or gas wells.  Substantially all of our properties are in the exploration stage only and are without proven reserves of oil and gas.  We may not establish commercial discoveries on any of our properties that do not have any proved developed or undeveloped reserves.  For information about our proved reserves, please see Note [•] to our consolidated financial statements as of and for the years ended December 31, 2011 and 2010 included in this Annual Report.

The potential profitability of oil and gas ventures depends upon factors beyond our control.

The potential profitability of oil and gas properties is dependent upon many factors beyond our control.  For instance, world prices and markets for oil and gas are unpredictable, highly volatile, potentially subject to governmental fixing, pegging, controls, or any combination of these and other factors, and respond to changes in domestic, international, political, social, and economic environments.  Additionally, due to worldwide economic uncertainty, the availability and cost of funds for production and other expenses have become increasingly difficult, if not impossible, to project.  These changes and events will likely materially affect our financial performance.

Adverse weather conditions can also hinder drilling and completion operations.  A productive well may become uneconomic in the event water or other deleterious substances are encountered that impair or prevent the production of oil and/or gas from the well.  In addition, production from any well may be unmarketable if it is impregnated with water or other deleterious substances.  The marketability of oil and gas that may be acquired or discovered will be affected by numerous factors beyond our control.  These factors include the proximity and capacity of oil and gas pipelines and processing equipment, market fluctuations of prices, taxes, royalties, land tenure, allowable production, and environmental protection.  These factors cannot be accurately predicted and the combination of these factors may result in us not receiving an adequate return on invested capital.

Competition in the oil and gas industry is highly competitive and there is no assurance that we will be successful in acquiring the leases.

The oil and gas industry is intensely competitive.  We compete with numerous individuals and companies, including many major oil and gas companies that have substantially greater technical, financial, and operational resources and staffs.  Accordingly, there is a high degree of competition for desirable oil and gas leases, suitable properties for drilling operations, and necessary drilling and completion equipment and services, as well as for access to funds.  We cannot predict if the necessary funds can be raised or that any projected work will be completed.  Our budget anticipates our acquisition of additional acreage.  This acreage may not become available or if it is available for leasing, we may not be successful in acquiring the leases.  There are other competitors that have operations in areas of potential interest to us and the presence of these competitors could adversely affect our ability to acquire additional leases.

The marketability of natural resources will be affected by numerous factors beyond our control, which may result in us not receiving an adequate return on invested capital to be profitable or viable.

The marketability of natural resources that may be acquired or discovered by us will be affected by numerous factors beyond our control.  These factors include market fluctuations in oil and gas pricing and demand, the proximity and capacity of natural resource markets and processing equipment, land tenure, land use and governmental regulations including regulations concerning the importing and exporting of oil and gas, and environmental protection regulations.  The exact effect of these factors cannot be accurately predicted, but the combination of these factors may result in us not receiving an adequate return on invested capital to be profitable or viable.

Oil and gas operations are subject to comprehensive regulation, which may cause substantial delays or require capital outlays in excess of those anticipated, causing an adverse effect on us.

Oil and gas operations are subject to federal, state, and local laws relating to the protection of the environment, including laws regulating removal of natural resources from the ground and the discharge of materials into the environment.  Oil and gas operations are also subject to federal, state, and local laws and regulations which seek to maintain health and safety standards by regulating the design and use of drilling methods and equipment.  Various permits from government bodies are required for drilling operations to be conducted; no assurance can be given that such permits will be received.  Environmental standards imposed by federal, provincial, or local authorities may be changed and any such changes may have material adverse effects on our activities.  Moreover, compliance with such laws may cause substantial delays or require capital outlays in excess of those anticipated, thus causing an adverse effect on us.  Additionally, we may be subject to liability for pollution or other environmental damages that we may elect not to insure against due to prohibitive premium costs and other reasons.  To date we have not been required to spend any material amount on compliance with environmental regulations.  However, we may be required to do so in future and this may affect our ability to expand or maintain our operations.

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Exploration and production activities are subject to certain environmental regulations, which may prevent or delay the commencement or continuance of our operations.

In general, our exploration and production activities are subject to certain federal, state, and local laws and regulations relating to environmental quality and pollution control.  Such laws and regulations increase the costs of these activities and may prevent or delay the commencement or continuance of a given operation.  Compliance with these laws and regulations has not had a material effect on our operations or financial condition to date.  Specifically, we are subject to legislation regarding emissions into the environment, water discharges, and storage and disposition of hazardous wastes.  In addition, legislation has been enacted which requires well and facility sites to be abandoned and reclaimed to the satisfaction of state authorities.  However, such laws and regulations are frequently changed and we are unable to predict the ultimate cost of compliance.  Generally, environmental requirements do not appear to affect us any differently or to any greater or lesser extent than other companies in the industry.

We believe that our operations comply, in all material respects, with all applicable environmental regulations.  We are not fully insured against all possible environmental risks.

Exploratory drilling involves many risks and we may become liable for pollution or other liabilities, which may have an adverse effect on our financial position.

Drilling operations generally involve a high degree of risk.  Hazards such as unusual or unexpected geological formations, power outages, labor disruptions, blow-outs, sour gas leakage, fire, inability to obtain suitable or adequate machinery, equipment or labor, and other risks are involved.  We may become subject to liability for pollution or hazards against which we cannot adequately insure or for which we may elect not to insure.  Incurring any such liability may have a material adverse effect on our financial position and operations. For information about risks associated specifically with hydraulic fracturing, please see “Business – Hydraulic Fracturing” on page [•] of this Annual Report.

Any change to government regulation/administrative practices may have a negative impact on our ability to operate and our profitability.

The laws, regulations, policies, or current administrative practices of any government body, organization, or regulatory agency in the United States or any other jurisdiction, may be changed, applied, or interpreted in a manner that will fundamentally alter the ability of our company to carry on our business.  The actions, policies, or regulations, or changes thereto, of any government body, regulatory agency, or special interest groups, may have a detrimental effect on us.  Any or all of these situations may have a negative impact on our ability to operate and/or our profitability.

Climate change legislation or regulations restricting emissions of “greenhouse gases” could result in increased operating costs and reduced demand for the oil and natural gas that we produce.

On December 15, 2009, the U.S. Environmental Protection Agency, or EPA, published its findings that emissions of carbon dioxide, or CO2, methane, and other greenhouse gases, or GHGs, present an endangerment to public health and the environment because emissions of such gases are, according to the EPA, contributing to the warming of the earth’s atmosphere and other climate changes.  These findings allow the EPA to adopt and implement regulations that would restrict emissions of GHGs under existing provisions of the Federal Clean Air Act.  The EPA has adopted two sets of regulations under the existing Clean Air Act that would require a reduction in emissions of GHGs from motor vehicles and could trigger permit review for GHG emissions from certain stationary sources.  In addition, in April 2010, the EPA proposed to expand its existing GHG reporting rule to include onshore oil and natural gas production, processing, transmission, storage, and distribution facilities.  If the proposed rule is finalized as proposed, reporting of GHG emissions from such facilities would be required on an annual basis, with reporting beginning in 2012 for emissions occurring in 2011.

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In addition, both houses of Congress have actively considered legislation to reduce emissions of GHGs, and almost one-half of the states have already taken legal measures to reduce emissions of GHGs, primarily through the planned development of GHG emission inventories and/or regional GHG cap and trade programs.  Most of these cap and trade programs work by requiring either major sources of emissions or major producers of fuels to acquire and surrender emission allowances, with the number of allowances available for purchase reduced each year until the overall GHG emission reduction goal is achieved.  The adoptions of any legislation or regulations that requires reporting of GHGs or otherwise limits emissions of GHGs from our equipment and operations could require us to incur costs to monitor and report on GHG emissions or reduce emissions of GHGs associated with our operations, and such requirement also could adversely affect demand for the oil and natural gas that we produce.

Federal and state legislative and regulatory initiatives relating to hydraulic fracturing could result in increased costs, additional operating restrictions or delays, and inability to book future reserves.

Hydraulic fracturing is a process used by oil and natural gas exploration and production operators in the completion or re-working of certain oil and natural gas wells, whereby water, sand, and chemicals are injected under pressure into subsurface formations to stimulate natural gas and, to a lesser extent, oil production.  We engaged third parties to provide hydraulic fracturing or other well stimulation services to us in connection with the well for which we are the operator and we expect to do so in the future for other wells.  Hydraulic fracturing is typically regulated by state oil and natural gas agencies and has not been subject to Federal regulation.  However, due to concerns that hydraulic fracturing may adversely affect drinking water supplies, the EPA has commenced a study of the potential adverse effects that hydraulic fracturing may have on water quality and public health, and a committee of the U.S. House of Representatives has commenced its own investigation into hydraulic fracturing practices.  Additionally, legislation has been introduced in Congress to amend the Federal Safe Drinking Water Act to subject hydraulic fracturing processes to regulation under that Act and to require the disclosure of chemicals used by the oil and natural gas industry in the hydraulic fracturing process.  If enacted, such a provision could require hydraulic fracturing activities to meet permitting and financial assurance requirements, adhere to certain construction specifications, fulfill monitoring, reporting, and recordkeeping requirements, and meet plugging and abandonment requirements.

In unrelated oil spill legislation being considered by the U.S. Senate in the aftermath of the April 2010 Macondo well release in the Gulf of Mexico, Senate Majority Leader Harry Reid has added a requirement that natural gas drillers disclose the chemicals that are pumped into the ground as part of the hydraulic fracturing process.  Disclosure of chemicals used in the fracturing process could make it easier for third parties opposing hydraulic fracturing to initiate legal proceedings based on allegations that specific chemicals used in the fracturing process could adversely affect groundwater.  Certain states and other agencies have adopted or are considering similar disclosure legislation, moratoria, or enforcement initiatives relating to hydraulic fracturing.  Adoption of legislation or of any implementing regulations placing restrictions on, or imposing reporting and disclosure obligations regarding, hydraulic fracturing activities could impose operational delays, increased operating costs and additional regulatory burdens on our exploration and production activities, which could make it more difficult to perform hydraulic fracturing, resulting in reduced amounts of oil and natural gas being produced and booked as reserves in the future, as well as increase our costs of compliance and doing business.

Our Bylaws contain provisions indemnifying our officers and directors against all costs, charges, and expenses incurred by them.

Our Bylaws contain provisions with respect to the indemnification of our officers and directors against all costs, charges, and expenses, including an amount paid to settle an action or satisfy a judgment, (i) actually and reasonably incurred and (ii) in a civil, criminal, or administrative action or proceeding to which such person is made a party by reason of such person being or having been one of our directors or officers.

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Investors’ interests in us will be diluted and investors may suffer dilution in their net book value per share if we issue additional shares or raise funds through the sale of equity securities.

In the event that we are required to issue any additional shares or enter into private placements to raise financing through the sale of equity securities, investors’ interests in us will be diluted and investors may suffer dilution in their net book value per share depending on the price at which such securities are sold.  If we issue any such additional shares, such issuances also will cause a reduction in the proportionate ownership and voting power of all other stockholders.  Further, any such issuance may result in a change in our management and directors. 

We have never paid cash dividends and do not intend to do so.

We have never declared or paid cash dividends on our common stock.  We currently plan to retain any earnings to finance the growth of our business rather than pay cash dividends.  Payments of any cash dividends in the future will depend on our financial condition, results of operations, and capital requirements, as well as other factors deemed relevant by our board of directors.

Our Bylaws do not contain anti-takeover provisions, which could result in a change of our management and directors if there is a take-over of us.

We do not currently have a stockholder rights plan or any anti-takeover provisions in our Bylaws.  Without any anti-takeover provisions, there is no deterrent for a take-over of us, which may result in a change in our management and directors.

Item 2. Properties.

Following consummation of the 2011 Merger with AEE Inc., we own a 100% working interest in the Hardy Property, containing approximately 4,300 net acres located in southeastern Saskatchewan, Canada. Our working interest in the Hardy Property is subject to certain, well-specific farmout agreements that reduce our working interests in those particular wells. The Hardy Property includes the 7-9 and the 4-16 operating oil wells that currently collectively produce approximately130 barrels of oil per day, and related equipment.

To date, we have agreed to participate in 28 exploratory wells located within the Spyglass Project areas, at various levels of participation. As of December 31, 2011, 22 wells are producing / shut in and the remaining 6 wells have been, or are in the process of being, drilled or completed.

A summary of the Company’s working interest in the Spyglass wells and the status of each well as of December 31, 2011 is discussed in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, below.

We own an undivided 50% working interest in approximately 11.521 additional net acres located in the Spyglass Project primarily in Divide County, North Dakota. An unrelated third party owns the other undivided 75% working interest in such net acres. No timetable has been developed for the exploration of this acreage.

We own a 100% working interest in approximately 743 net acres located within the Benrude Property, primarily in Roosevelt County, Montana. We are planning to complete a 3-D seismic analysis of the Benrude Property sometime in 2012, in order to determine our development strategy with respect to the Benrude acreage.

We own a 25% working interest in the 10,593 aggregate net acres located in the West Spyglass Project, primarily in Western Divide County, North Dakota, and eastern Sheridan County, Montana.  We sold 75% of the working interest to an unrelated third party during 2011. Post-closing, we will remain the operator on that acreage.

We own a 33% working interest in approximately 25,000 net acres located in the Glacier Prospect, primarily in Toole County, Montana.

We own a 100% working interest in approximately 399 net acres located within the Sidney North Prospect, primarily in Richland County, Montana.

AEE Inc. owns a 12.5% working interest in an oil and gas lease in Willacy County, Texas.  The land covered by the lease consists of 908 acres out of the San Juan de Carrieitos, Willacy County, Texas, which covers an undivided 29/32nd of the mineral estate.  The area is also subject to another oil and gas lease owned by Exxon Mobil Corporation for the remaining 3/32nds.

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AEE Inc. also currently owns an undivided 66.67% working interest in approximately 47,392 net acres located in Toole County, Montana.

The following is a summary of our developed acreage as of December 31, 2011:

Property / Prospect Name	Working Interest			Gross Acres		Net Acres		Number of Leases		Earliest Lease Expiration Date	Latest Lease Expiration Date
Hardy		100	%		960		960		2	April 2014	April 2014
Spyglass		50	%		778		389		8	August 2012	February 2017
Totals					1,738		1,349		10

The following is a summary of our undeveloped acreage as of December 31, 2011:

Property / Prospect Name	Working Interest			Gross Acres		Net Acres		Number of Leases		Earliest Lease Expiration Date	Latest Lease Expiration Date
Hardy		100	%		3,340		3,340		4	April 2014	April 2014
Spyglass		50	%		22,264		11,132		430	August 2012	February 2017
Benrude		100	%		743		743		32	December 2012	July 2015
Glacier		33	%		75,000		25,000		400	May 2012	June 2015
Sidney North		100	%		399		399		14	July 2013	October 2015
West Spyglass		25	%		42,372		10,593		283	April 2012	February 2017
Totals					144,118		51,207		1,163

Additional information regarding our oil and gas properties can be found in Note 7 and Note 15 to our financial statements as of and for the years ended December 31, 2011 and 2010, which are included in Item 8 of this document (see pages F-21 and F-34, respectively)

We currently lease 3,207 square feet of office space in Littleton, Colorado, which we believe to be sufficient for the operation of our business for the foreseeable future. We renewed and extended this lease in October 2011. The current lease agreement expires in December 2014.

We do not own or lease any other properties.

Item 3. Legal Proceedings.

We are not currently a party to any material legal proceedings.

Item 4. Mine Safety Disclosures.

Not applicable.

PART II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

Our common stock, par value $0.001, has been dually quoted on the OTC Markets Group, Inc. and the OTC Bulletin Board under the symbol “AMZG” since January 18, 2012 and, before that, under the symbol “EERG” since November 7, 2005, except from December 20, 2011 to January 17, 2011 when the symbol was “EERGD”; however, active trading in the market of our common stock did not commence until February 2, 2006. The following table sets forth the high and low bid prices for our common stock for the periods indicated, as reported by OTC Markets Group, Inc. Such quotations reflect inter-dealer prices, without retail mark-up, mark-down or commissions, and may not necessarily represent actual transactions. Historical prices have been adjusted to reflect the effect of the one-for-four and one-half reverse stock-split that occurred on December 20, 2011.

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	Bid
	High		Low
Year ended December 31, 2011:
First Quarter	$	1.89	$	0.50
Second Quarter		2.03		1.40
Third Quarter		1.49		0.81
Fourth Quarter		1.75		0.81
Year ended December 31, 2010:
First Quarter		0.72		0.18
Second Quarter		0.36		0.14
Third Quarter		0.41		0.23
Fourth Quarter		0.59		0.23

As of April 9, 2012, there were 45 holders of record of our common stock.

We have never declared or paid any cash dividends on our common stock. For the foreseeable future, we expect to retain any earnings to finance the operation and expansion of our business.

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

THE FOLLOWING PRESENTATION OF OUR MANAGEMENT'S DISCUSSION AND ANALYSIS SHOULD BE READ IN CONJUNCTION WITH THE FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION INCLUDED ELSEWHERE IN THIS REPORT.

A Note About Forward-Looking Statements

This Annual Report on Form 10-K contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on current management's expectations. These statements may be identified by their use of words like “plans,” “expect,” “aim,” “believe,” “projects,” “anticipate,” “intend,” “estimate,” “will,” “should,” “could,” and other expressions that indicate future events and trends. All statements that address expectations or projections about the future, including statements about our business strategy, expenditures, and financial results are forward-looking statements. We believe that the expectations reflected in such forward-looking statements are accurate. However, we cannot assure you that such expectations will occur.

Actual results could differ materially from those in the forward-looking statements due to a number of uncertainties, including, but not limited to, those discussed in this section. Factors that could cause future results to differ from these expectations include general economic conditions, further changes in our business direction or strategy, competitive factors, oil and gas exploration uncertainties, and an inability to attract, develop, or retain technical, consulting, or managerial agents or independent contractors. As a result, the identification and interpretation of data and other information and their use in developing and selecting assumptions from and among reasonable alternatives requires the exercise of judgment. To the extent that the assumed events do not occur, the outcome may vary substantially from anticipated or projected results, and, accordingly, no opinion is expressed on the achievability of those forward-looking statements. No assurance can be given that any of the assumptions relating to the forward-looking statements specified in the following information are accurate, and we assume no obligation to update any such forward-looking statements. You should not unduly rely on these forward-looking statements, which speak only as of the date of this Annual Report, except as required by law; we are not obligated to release publicly any revisions to these forward-looking statements to reflect events or circumstances occurring after the date of this Annual Report or to reflect the occurrence of unanticipated events.

Industry Outlook

The petroleum industry is highly competitive and subject to significant volatility due to numerous market forces. Crude oil and natural gas prices are affected by market fundamentals such as weather, inventory levels, competing fuel prices, overall demand, and the availability of supply.

Worldwide oil prices reached historical highs during the last half of 2008, before tumbling amid worldwide economic crisis. Oil prices stabilized during 2009 and remained stable throughout 2010. Since December 31, 2010, oil prices increased rapidly, topping $100 per barrel in mid-March 2011. Oil prices varied widely during 2011, ranging from $88 to $114 per barrel. The price of oil at December 31, 2011 was approximately $99 per barrel.

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Oil prices cannot be predicted with any certainty and have significantly affected profitability and returns for upstream producers. Historically, crude oil prices have averaged approximately $82 per barrel over the past five years, per the New York Mercantile Exchange (“NYMEX”). However, during that time, oil prices have experienced wide fluctuations in prices, ranging from $37 per barrel to $145 per barrel, with the median price of $80 per barrel. Oil prices averaged approximately $95 during the year ended December 31, 2011.

While local supply/demand fundamentals are a decisive factor affecting domestic natural gas prices over the long term, day-to-day prices may be more volatile in the futures markets, such as on the NYMEX and other exchanges, making it difficult to forecast prices with any degree of confidence.

Company Overview

The address of our principal executive office is 2549 W. Main Street, Suite 202, Littleton, Colorado, 80120. Our telephone number is 303-798-5235.

Our common stock is quoted on the OTC Bulletin Board and the OTC Markets Group Inc.’s OTCQB under the symbol “AMZG.”

Our Company was incorporated in the State of Nevada under the name “Golden Hope Resources Corp.” on July 25, 2003 and is engaged in the acquisition, exploration, and development of natural resource properties of merit. On November 7, 2005, we filed documents with the Nevada Secretary of State to change our name to “Eternal Energy Corp.” by way of a merger with our wholly-owned subsidiary, Eternal Energy Corp., which was formed solely to facilitate the name change. In December 2011, we again filed documents with the Nevada Secretary of state to change our name to “American Eagle Energy Corporation”, in conjunction with our acquisition of, and merger with, AEE Inc.

Since our inception, we have entered into participation agreements related to oil and gas exploration projects throughout the continental United States, including Colorado, Montana, Nevada, North Dakota, Texas, and Utah, as well as in the province of Saskatchewan, Canada, and areas located in the North Sea. As of December 31, 2011, we are actively engaged in exploration activities within the Spyglass Property, located in Divide County, North Dakota, within the Benrude Property, located in Roosevelt County, Montana and within the Hardy Property, located in southeastern Saskatchewan, Canada. In addition, we own undeveloped acreage interests in the Glacier Prospect, located in Toole County, Montana, the Sidney North Prospect, located in Richland County, Montana and the West Spyglass Prospect, located in an area adjacent to our Spyglass Property in Divide County, North Dakota and Sheridan County, Montana.

Our current operations consist of nine full-time employees and one paid consultant, who provides land management services on a contract basis.

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Oil & Gas Wells

As of December 31, 2011, the Company has elected to participate in the drilling of 28 wells within the Spyglass Property. The Company’s consolidated working interests in these wells ranges from 0.03% to 35.49%. The Spyglass Property is evaluated for impairment annually. There were no impairments evident as of December 31, 2011.

A summary of the Company’s working interest in the Spyglass wells and the status of each well as of December 31, 2011 is as follows:

Well Name	Operator	Working Interest			Actual or Anticipated Spud Date	Current Status
Aarestad 4-34H-160N-97W	North Plains Energy, LLC		0.63	%	November 1, 2010	Producing
Adams 2-18H-163N-100W	SM Energy		18.52	%	April 20, 2012	Waiting to spud
Bagley 4-30H-163N-100W	SM Energy Company		3.87	%	April 3, 2011	Producing
Blazer 2-11-163N-98W	Samson Resources Company		0.94	%	February 12, 2011	Producing
Christianson 15-12-163N-101W	American Eagle		35.49	%	January 11, 2012	Completing
Cody 15-11-163N-101W	American Eagle		31.20	%	March 22, 2012	Drilling
Coplan 1-3-163N-101W	American Eagle		12.86	%	April 25, 2012	Waiting to spud
Denali 13-21-163N-98W	Samson Resources Company		0.03	%	December 23, 2010	Producing
Gerhardsen 1-10H-160N-97W	Continental Resources, Inc.		2.37	%	January 12, 2011	Producing
Gulbranson 2-1H-163N-100W	SM Energy		11.34	%	May 25, 2012	Waiting to spud
Jurasin 32-29-162N-100W	Crescent Point Energy		0.61	%	October 15, 2011	Shut-in

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Well Name	Operator	Working Interest			Actual or Anticipated Spud Date	Current Status
Lancaster 2-1H-162N-101W	Crescent Point Energy		6.23	%	July 1, 2011	Completing
Legaard 4-25H-163N-101W	SM Energy Company		3.69	%	July 19, 2011	Producing
Montclair 1-12	Samson Resources Company		1.60	%	November 7, 2011	Producing
Mustang 7-6-163N-98W	Samson Resources Company		0.32	%	April 25, 2011	Producing
Nielsen 1-12H-160N-97W	Continental Resources, Inc.		0.46	%	December 21, 2010	Producing
Nomad 6-7-163N-99W	Samson Resources Company		14.47	%	October 26, 2011	Producing
Olson 15-22-162N-100W	Baytex Energy USA		0.78	%	August 11, 2011	Producing
Reistad 1-1H-162N-102W	Murex Petroleum Corporation		8.62	%	February 28, 2011	Waiting on completion
Ridgeway 25-36-163N-101W	Crescent Point Energy		1.88	%	August 15, 2011	Shut-in
Riede 4-14H-163N-100W	SM Energy Company		0.34	%	January 30, 2011	Producing
Thomte 8-5-163N-99W	Samson Resources Company		3.18	%	August 22, 2011	Producing

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Well Name	Operator	Working Interest			Actual or Anticipated Spud Date	Current Status
Titan 36-25-163N-99W	Samson Resources Company		0.81	%	October 8, 2011	Producing
Torgeson 1-15H-163N-100W	SM Energy Company		4.38	%	March 6, 2011	Producing
Wolter 1-28H-163N-100W	SM Energy Company		1.30	%	November 27, 2010	Producing
Wolter 13-9H-163N-100W	SM Energy Company		5.92	%	June 26, 2011	Producing
Wolter 15-8H-163N-100W	SM Energy		1.54	%	November 20, 2011	Producing
Yukon 12-1-163N-98W	Samson Resources Company		1.25	%	February 28, 2011	Producing

Well Summary

The following tables summarize the Company’s wells and drilling activity for the years ended December 30, 2011 and 2010:

	December 31, 2011				December 31, 2010
	U.S.		Canada		U.S.		Canada
Gross exploratory wells:
Beginning of period		-		-		-		-
Purchased / acquired		-		-		-		-
Drilled		-		-		-		-
Abandoned		-		-		-		-
End of period		-		-		-		-

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	December 31, 2011				December 31, 2010
	U.S.		Canada		U.S.		Canada
Gross development wells:
Beginning of period		-		1.00		-		-
Purchased / acquired		-		-		-		1.0
Drilled		21.00		1.00		-		-
Abandoned		-		-		-		-
End of period		21.00		2.00		-		1.0
Net exploratory wells:
Beginning of period		-		-		-		-
Purchased / acquired		-		-		-		-
Drilled		-		-		-		-
Abandoned		-		-		-		-
End of period		-		-		-		-
Net development wells:
Beginning of period		-		1.00		-		-
Purchased / acquired		-		-		-		1.00
Drilled		0.50		0.75		-		-
Abandoned		-		-		-		-
End of period		0.50		1.75		-		1.00

The Company did not drill any dry exploratory or developmental wells during the years ended December 31, 2011 and 2010.

Acquisition of AEE Inc.

On February 23, 2011, we announced our intention to pursue a merger with AEE Inc. On April 8, 2011, we entered into a definitive merger agreement (that was amended on September 28, 2011, to extend the termination date), pursuant to which we formed a wholly-owned subsidiary into which AEE Inc. was merged. On December 20, 2011, we consummated the final steps in the merger transaction and trading of the common stock of the combined company commenced. The relevant documents for the merger were filed with the Secretary of State of Nevada effective November 30, 2011.

The ratio of stockholdings between the companies at the closing of the merger, exclusive of any then-outstanding options, was approximately 80% to the legacy stockholders of AEE Inc. and 20% to our legacy stockholders. Despite the fact that the AEE Inc.’s legacy stockholders held approximately 80% of the Company’s outstanding shares immediately following the merger, other factors present in the structure of the transaction resulted in the Company being determined to be the legal and acquiring entity. We completed the registration of the common stock that we issued to the legacy stockholders of AEE Inc. with the Securities and Exchange Commission on November 11, 2011.

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Results of Operations for the Year Ended December 31, 2011 vs. 2010

The following discussion regarding the results of our operations for the years ended December 2011 and 2010 focuses solely on the stand-alone operations of American Eagle Energy Corporation and our wholly owned subsidiary, EERG Energy ULC. The consolidated results of operations for AEE Inc. for the period January 1, 2011 through December 20, 2011, the date of our merger, are excluded from our reportable 2011 results of operations due to accounting rules applicable to business combinations.

We recognized net income of $4,453,901 for the year ended December 31, 2011, compared to net earnings of $2,884,491 for the year ended December 31, 2010. Our basic and diluted earnings per share for the year ended December 31, 2011 was $0.49 and $0.37, respectively, compared to $0.31 and $0.30 for the year ended December 31, 2010, respectively. The 2010 earnings per share figures have been adjusted to reflect the effects of the 1.0-to-4.5 reverse stock split that occurred in December 2011. A discussion of the key components of our statements of operations and material fluctuations for the years ended December 31, 2011 and 2010 is provided below.

Revenues associated with the sale of oil and gas totaled $864,918 for the year ended December 31, 2011, compared to $207,788 for the year ended December 31, 2010. A comparison of the 2011 and 2010 oil sales is as follows:

· In March 2010, we acquired a 100% working interest in approximately 4,680 net acres located in southeastern Saskatchewan, Canada (the “Hardy Property”). The acquired acreage contained one existing oil well (the “Hardy 7-9 well”) that was shut-in due to mechanical issues. In June 2010, we exchanged half of our working interest in the Hardy Property with AEE Inc. in exchange for a 50% working interest in certain unproved acreage located in the Spyglass Property. During August 2010, AEE Inc. and we completed a workover and recompletion of the Hardy 7-9 well. The well was returned to production in September 2010. The Hardy 7-9 well has produced on and off during the year ended December 31, 2011. In January 2011, the well encountered mechanical problems and was taken off of production due to a parted rod string. The well was repaired and returned to production in March 2011. The well went off of production in mid-April due to mechanical issues. The well bore was repaired in May 2011; but, the well remained shut-in through June 30, 2011 due to inclement weather conditions and widespread flooding in the area. The Hardy 7-9 was returned to production in July 2011 and produced oil during five of the last six months of 2011.

· In May 2011, we drilled and cased the Hardy 4-16 well, a second well on the Hardy Property. The Hardy 4-16 well was subsequently fracture stimulated and put on production in mid-September 2011.

· Oil sales from our Hardy wells, net of royalty interests payable to royalty interest holders, totaled $462,482 for the year ended December 31, 2011 versus $133,303 for the comparable period in 2010.

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· During 2011, we began recognizing revenues from our various working interests in a number of wells located within the Spyglass Property. Revenues related to Spyglass wells totaled $402,436 for the year ended December 31, 2011. No such revenue was recognized during 2010. The majority of our 2011 Spyglass oil sales is attributable to the Torgeson 1-15, the Bagley 4-30, the Wolter 1-28 and the Gerhardsen 1-10 wells, which contributed $152,776, $83,799, $75,764 and $65,039 in oil sales, respectively. The Torgeson 1-15, Bagley 4-30 and Wolter 1-28 wells are operated by SM Energy Company. The Gerhadsen 1-10 well is operated by Continental Resources, Inc.

· During the first quarter of 2010, we recognized revenues totaling $74,485 related to our 5% overriding royalty interests in certain properties located in Saskatchewan, Canada. We sold our overriding royalty interests to Ryland Oil Corporation (“Ryland”) in March 2010. Accordingly, we did not recognize any such overriding royalty revenues during 2011.

Oil and gas operating expenses totaled $535,498 for the year ended December 31, 2011 compared to $141,481 for the same period in 2010. We acquired a 50% working interest in the Hardy 7-9 well in April 2010. At that time, the well was shut-in due to mechanical issues. After recompleting the well, the well was returned to production in September 2010 and continued to produce for the remainder of 2010. The Hardy 7-9 encountered a broken rod string in January 2011 and produced off and on throughout 2011 due to mechanical issues and weather related delays. Lease operating expenses associated with the Hardy 7-9 well totaled $265,471 for the year ended December 31, 2011, compared to $141,481 for the year ended December 31, 2010.

In July 2011, we drilled the Hardy 4-16 well, which is an offset well to the Hardy 7-9 well. The Hardy 4-16 well was completed and put on production in September 2011. Lease operating expenses associated with the Hardy 4-16 well totaled $175,083 for the year ended December 31, 2011.

Also in 2011, we began recognizing lease operating expenses related to our working interests in a number of non-operated wells located within the Spyglass Property. Lease operating expenses associated with these wells totaled $23,116 for the year ended December 31, 2011.

General and administrative expenses totaled $2,148,126 for the year ended December 31, 2011, compared to $1,352,732 for the year ended December 31, 2010. The net increase is primarily due to the following:

· Salaries and related payroll expenses totaled $327,211 for the year ended December 31, 2011, compared to $581,799 for the prior year. The decrease is due to our termination of the employment agreements of our then-CFO and then-Vice President of Engineering in November 2010. Thereafter, between January and August 2011, our former CFO provided accounting services to us on a contract basis. As such, fees paid to our former CFO are included in Professional Fees for the year ended December 31, 2011 versus payroll costs in 2010. In September 2011, we rehired our former CFO on a permanent, employee basis. This individual was renamed as our CFO effective January 1, 2012.

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· For the year ended December 31, 2011, we paid employment and performance related bonuses totaling $196,500 to members of our management and operational teams, in recognition of the successful acquisition of, and merger with, AEE Inc. Performance bonuses for the year ended December 31, 2010 totaled $31,100.

· We incurred legal fees totaling $637,707 during the year ended December 31, 2011, the majority of which related to our acquisition of AEE Inc. Legal fees for the year ended December 31, 2010 totaled $268,704 and primarily related to a proposed merger with Ryland. The merger with Ryland was never completed.

· We also incurred consulting fees totaling $171,417 during the year ended December 31, 2011, the majority of which related to business valuation services obtained in connection with our proposed merger with AEE Inc. Consulting fees for the year ended December 31, 2010 totaled $61,423 and consisted of fees associated with the obtaining of a fairness opinion related to our contemplated merger with Ryland in March 2010. As stated previously, the merger with Ryland was never completed.

· Accounting fees for the year ended December 31, 2011 totaled $169,993, compared to $58,301 for the year ended December 31, 2010. The increase is primarily due to additional auditing services obtained in connection with our merger with AEE Inc. and related SEC filings, as well as fees incurred as a result of outsourcing all accounting related activities between January and August, 2011.

· In December 2011, we granted 975,000 stock options to members of our management and operational teams, as well as two directors and one independent contractor. As a result, we recognized stock-based compensation expense of $30,614 for the year ended December 31, 2011. The remaining value of the options, as calculated using the Black-Scholes Pricing Model will be amortized over the remaining five-year life of the stock options. We did not recognized any stock-based compensation expense during the year ended December 31, 2010, as all outstanding options at that time had fully vested prior to January 1, 2010.

· In September 2010, we recorded several one-time adjustments to remove various long-standing account balances that were no longer deemed necessary. The effect of these adjustments was a reduction of general and administrative expenses for the year ended December 31, 2010 by $43,101. No such adjustments were recorded during the year ended December 31, 2011.

· Travel and entertainment related expenses increased from $12,705 for the year ended December 31, 2010 to $32,764 for the year ended December 31, 2011, primarily as a result of increased travel related to merger and property sales negotiations.

· The majority of our transactions related to our Hardy Property are transacted in Canadian Dollars. During the year ended December 31, 2011, we recognized foreign exchange losses totaling $17,886 relating to currency fluctuations between the US Dollar and the Canadian Dollar. We recognized foreign exchange losses of $24,104 during the year ended December, 2010.

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· In May 2011, we paid fees totaling $17,595 to a certain director as compensation for serving on the Special Committee that was formed to review the proposed merger transaction with AEE Inc. This is the only time that we have ever compensated any of our directors through a cash payment.

· In July 2011, we entered into an agreement with a third party to provide expanded press release services. Expenses related to investor relations totaled $31,380 for the year ended December, 2011 compared to $3,340 for the corresponding period in 2010.

· Fees paid to our transfer agent totaled $36,160 for the year ended December 31, 2011, compared to $1,580 for 2010. The increase is primarily due to the distribution of informational materials related to our acquisition of AEE Inc.

· Filing fees for the year ended December 31, 2011 increased by $13,726 from the same period in 2010 due to additional filings that were required in connection with our acquisition of AEE Inc.

· Land management fees for the year ended December 31, 2011 totaled $72,733 compared to $80,333 for the year ended December 31, 2010.

· For the period from June 1, 2011 through the date of the merger, we sublet a portion of our office space to AEE Inc. In addition, we entered into an agreement to extend the lease on our office space effective October 1, 2010 at a lower monthly rate than we were paying previously. As a result, net office rent expense for the year ended December 31, 2011 decreased by $13,820 from the corresponding period in 2010.

Depletion expense related to the Hardy 7-9 and Hardy 4-16 wells totaled $89,185 for the year ended December 31, 2011, compared to $104,350 for the prior year. Despite an increase to our amortizable cost basis associated with the Hardy Property and the fact that oil sales volumes increased from 2010 to 2011, depletion expense decreased due to the fact that proved reserves as of December 31, 2011 greatly exceed our proved reserves as of the end of 2010. Thus, our depletion rate for 2011 is significantly lower than the prior year rate. Further, depreciation expense declined from $48,933 for the year ended December 31, 2010 to $7,603 for the year ended December 31, 2011, as the majority of our leasehold improvements and office equipment became fully depreciated at the end of 2010.

In April 2010, we sold our gross overriding royalty interest in approximately 264,000 net acres within an area of mutual interest located in southeastern Saskatchewan to Ryland. In addition to cash consideration totaling $2.9 million, we received 2,145,883 shares of Ryland’s common stock, which were valued at approximately $874,973 as of the date of sale, and an assignment of Ryland’s 100% working interest in the Hardy Property (approximately 4,680 net acres located in Saskatchewan and related equipment). At the time of the sale, the Hardy Property had an estimated fair market value of $238,681. We recognized a gain in the amount of $4,735,253 during the year ended December 31, 2010 related to the sale.

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Also in April 2010, we sold our working interest in approximately 700 net acres located within the Pebble Beach prospect to Ryland’s wholly-owned subsidiary, Rover Resources Inc., for cash consideration totaling $1 million. Because the sale represented a significant reduction of the full-cost pool that is not subject to amortization, we reallocated the costs of the pool among the properties included within the pool based on relative fair market value at the time of the sale. We recognized a $509,934 gain on the sale of the Pebble Beach acreage during the year ended December 31, 2010.

In June 2010, Crescent Point Energy Corp. (“Crescent Point”) acquired Ryland. As a result, the 2,145,883 shares of Ryland’s common stock that we acquired in connection with the sale of our gross overriding royalty interests to Ryland were exchanged for 25,107 shares of Crescent Point’s common stock. Dividend income for the year ended December 31, 2011 totaled $69,822, compared to $23,759 for the year ended December 31, 2010.

In May 2011, we sold half of our working interest in our Spyglass Property to a third party. The sale was completed via a series of three scheduled closings. Net proceeds from the sale totaled $3,823,963, of which $46,170 was receivable as of December 31, 2011. At the time of the sale, the Spyglass Property represented the only unproven prospect included in the portion of our full-cost pool that is not subject to amortization. After applying a portion of the sales proceeds to fully reduce the non-amortizable portion of our full cost pool, we recognized a gain in the amount of $3,072,377. During the third quarter of 2011, we reassigned the Spyglass Property from the non-amortizable full-cost pool to the full-cost pool that is subject to amortization, as the Spyglass Property was identified as containing proved reserves.

Also in May 2011, we sold a portion of our working interest in the Pebble Beach Property for net cash consideration totaling $227,079. Because the sale did not represent the disposal of a significant percentage of the portion of our full-cost pool that is subject to amortization, 100% of the net proceeds received were recorded as a reduction of the full-cost pool.

In June 2011, we, along with our then working interest partner, AEE Inc., began acquiring mineral leases in an area we call the West Spyglass Prospect. In December 2011, we sold 75% of our working interest in the West Spyglass Prospect. Net proceeds from the sale totaled $5,456,548. At the time of the sale, the West Spyglass Prospect represented the only unproven prospect included in the portion of our full-cost pool that is not subject to amortization. After applying a portion of the sales proceeds to fully reduce the non-amortizable portion of our full-cost pool, we recognized a gain in the amount of $3,332,737.

Also in December 2011, we sold a portion of our working interest in additional Pebble Beach Property for net cash consideration totaling $1,889,974. Because the sale did not represent the disposal of a significant percentage of the portion of our full-cost pool that is subject to amortization, 100% of the net proceeds received were recorded as a reduction of the full-cost pool.

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We recognized Canadian income tax expense totaling $892,112 during the year ended December 31, 2010 in connection with our sale of certain gross overriding royalties to Ryland. We did not recognize any US income tax expense in 2010 as all of our taxable income was offset by net operating losses (”NOL’s) that were carried forward from prior years. We recognized US income tax expense of $99,291 for the year ended December 31, 2011. All of our remaining US NOL’s were fully utilized during the year ended December 31, 2011.

Liquidity and Capital Resources

As of December 31, 2011, our assets totaled $40,041,223, which included, among other items, cash balances totaling $12,151,309, trade receivables totaling $3,105,079, amounts due from our working interest partner, Passport Energy Ltd., totaling $314,521, and marketable securities valued at $1,254,434. Our working capital as of December 31, 2011 was $5,920,991, compared to $2,527,606 as of December 31, 2010.

We did not have any outstanding bank debt, loans or notes payable as of December 31, 2011 or December 31, 2010.

Historically, we have successfully raised additional operating capital through private equity funding sources and from the sale of various oil and gas prospects and properties. However, no assurances can be given that we will be able to obtain sufficient working capital through the sale of common stock and/or borrowing or that the development and implementation of our business plan will generate sufficient future revenues to sustain ongoing operations.

Litigation

As of December 31, 2011, we are not subject to any known or threatened litigation.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements.

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Item 8. Financial Statements and Supplementary Data.

Our financial statements required to be included in Item 8 are set forth in the Index to Financial Statements on page F-1 of this Annual Report.

Item 9. Changes In and Disagreements With Accountants on Accounting and Financial Disclosure.

On November 25, 2011, we dismissed Kelly & Company as our principal accountant. The report of Kelly & Company on our financial statements for the fiscal year ended December 31, 2010 did not contain an adverse opinion or a disclaimer of opinion, nor was qualified or modified as to uncertainty, audit scope, or accounting principles. We engaged Hein & Associates LLP (“Hein & Associates”) as our new principal accountant effective as of November 28, 2011. The decision to change accountants was recommended and approved by our board of directors.

During the fiscal years ended December 31, 2011 and 2010, and the subsequent interim period through November 25, 2011, the date of dismissal, there were no disagreements with Kelly & Company on any matter of accounting principles or practices, financial statement disclosures, or auditing scope or procedures, which disagreement(s), if not resolved to the satisfaction of Kelly & Company, would have caused them to make reference to the subject matter of the disagreement(s) in connection with their report, nor were there any reportable events as defined in Item 304(a)(1)(iv) of Regulation S-K.

We engaged Hein & Associates as our new independent accountant as of November 28, 2011. During the fiscal years ended December 31, 2011 and 20010, and the subsequent interim period through November 25, 2011, we did not, nor did anyone on our behalf, engage Hein & Associates regarding either the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on our financial statements, or any matter that was either the subject of a “disagreement” or a “reportable event,” both as such terms are defined in Item 304 of Regulation S-K.

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Item 9A. Controls and Procedures.

Disclosure Controls and Procedures

Our Principal Executive Officer and Principal Financial Officer has evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, as of December 31, 2011.  Based on this evaluation, our Principal Executive Officer and Principal Financial Officer has concluded that our disclosure controls and procedures were effective, at the reasonable assurance level, during the period and as of the end of the period covered by this Annual Report to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission rules and forms and that such information is accumulated and communicated to our management as appropriate to allow timely decisions regarding required disclosures.

Our Principal Executive Officer and Principal Financial Officer do not expect that our disclosure controls and procedures will prevent all error and all fraud.  A control system, no matter how well conceived and operated, can provide only reasonable, not absolute assurance that the objectives of the control system are met.  Further, the benefits of controls must be considered relative to their costs.  Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within us have been detected.  Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management’s Report on Internal Control Over Financial Reporting

Our internal controls over financial reporting are designed by, or under the supervision of our Principal Executive Officer and Principal Financial Officer or persons performing similar functions, and effected by our board of directors, management, and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.  Our internal control over financial reporting includes those policies and procedures that:

· Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets;

· Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and

· Provide reasonable assurance regarding prevention of, or timely detection of, unauthorized acquisition or disposition of our assets that could have a material effect on the financial statements.

Our management has evaluated the effectiveness of our internal control over financial reporting as of December 31, 2011, based on the control criteria established in a report entitled Internal Control — Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission.  Based on this evaluation, our management has concluded that our internal control over financial reporting was effective as of December 31, 2011.

Changes in Internal Control over Financial Reporting

During the fourth quarter of 2011, there were no changes in our internal controls or in other factors that materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

This Annual Report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting.  Management’s report was not subject to attestation by our registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit us to provide only management’s report in this Annual Report.

Item 9B. Other Information.

There is no other information required to be disclosed during the fourth quarter of the fiscal year covered by this Annual Report.

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PART III

Item 10. Directors, Executive Officers and Corporate Governance.

Executive Officers and Directors

The following table sets forth information concerning current executive officers and directors as of the date of this Annual Report:

Name	Age	Position(s)
Richard Findley	59	Director (Chairman of the Board)
Bradley M. Colby	55	President, Chief Executive Officer, Treasurer and Director
Kirk A. Stingley	46	Chief Financial Officer
Thomas Lantz	59	Chief Operating Officer
John Anderson	47	Director
Andrew P. Calerich	47	Director
Paul E. Rumler	58	Director and Secretary

Richard (“Dick”) Findley – Mr. Findley was appointed as our Chairman of the Board of Directors immediately following the closing of the 2011 Merger. Prior to the closing of the 2011 Merger and since December 14, 2009, he served as AEE Inc.’s President, Secretary, and Treasurer, and as its sole director. Mr. Findley is a geologist engaged in exploration for oil and gas. His 35-year career began in February 1975 with Tenneco Oil Company, located in Denver, Colorado, and continued with Patrick Petroleum, located in Billings, Montana, in January 1978. Mr. Findley formed Prospector Oil, Inc. in September 1983 to build an independent company working within the Williston Basin and Northern Rockies. He served as Chairman of the Board for Ryland, a company engaged in Bakken exploitation in Saskatchewan and North Dakota, from June 2007 until November 2007 and he served as a board member for RPT Uranium Inc. from July 2008 until June 2009. From October 19, 2010 to March 12, 2012, Mr. Findley served as an Executive Director of Passport, a Canadian resources company traded on the Canadian National Stock Exchange.

Mr. Findley has been credited with the discovery of Elm Coulee Field, which has been ranked as the 23rd largest oil field in terms of liquid proved reserves in the United States and is also the analogy for the Bakken Play in Montana, North Dakota, and Canada. His story has been featured in the Wall Street Journal, and the Canadian National Post, as well as other international papers in Italy and the Netherlands. He has also been the subject in oil and gas trade journals, including the American Oil and Gas Reporter, Petroleum Intelligence Weekly , and the AAPG Explorer magazine.

Mr. Findley holds a BS (1973) and an MS (1975) from Texas A&M University. He was awarded a Tenneco Fellowship Grant from 1973 to 1975 and received a best paper award – Third Place, Gulf Coast Association of Geological Societies in 1973. He also received the Michel T. Halbouty Fellowship in 1974. In December 2006, Texas A&M awarded him the Michel Halbouty Medal for distinguished achievement in geosciences and earth resources exploration development and conservation following the discovery of Elm Coulee. Mr. Findley has been a member of the American Association of Petroleum Geologists since 1974 and received its “Outstanding Explorer Award” in 2006 for his discovery of Elm Coulee Field.

Bradley M. Colby – Mr. Colby was appointed as our President, Chief Executive Officer, and Treasurer and as one of our directors on November 4, 2005. From November 2010 until January 1, 2012, he also served as our Chief Financial and Accounting Officer. For the four years prior to joining us, Mr. Colby was a principal at Westport Petroleum, Inc., where he bought and sold producing properties for his own account. Mr. Colby received a BS in Business-Minerals Land Management from the University of Colorado in 1979 and studied petroleum engineering at the Colorado School of Mines.

Kirk A. Stingley – Mr. Stingley was appointed as our Chief Financial Officer on January 1, 2012, having served in that capacity from June 2, 2008, to November 1, 2010. From January 1, 2011 to August 31, 2011, Mr. Stingley provided financial consulting services to us on an independent basis; effective September 1, 2011, he recommenced his status as a full-time employee.  During November and December 2010, Mr. Stingley was employed as the Corporate Controller for MicroStar Keg Management LLC.  Between January and May 2008, Mr. Stingley was employed by Adam James Consulting, where he provided accounting consulting services.  During the preceding four years, from December 2003 to January 2008, he served as the Director of Internal Audit and as Director of Online Operations for The Sports Authority, Inc.  Mr. Stingley began his career with Coopers & Lybrand in Houston, Texas and Denver, Colorado, where he provided auditing and consulting services to a number of private and publicly traded companies, whose principle activities involved the exploration, development, and operation of oil and gas properties.  Subsequent to leaving public accounting, Mr. Stingley served as the Director of Accounting Services for Jefferson Wells International, a regional financial consulting firm, where he provided accounting and financial related services to various oil and gas related entities.  Mr. Stingley holds an active CPA license in Colorado.

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Thomas G. Lantz – Mr. Lantz was appointed as our Chief Operating Office immediately following the closing of the 2011 Merger. Prior to the closing of the 2011 Merger and since June 2010, he had served as AEE Inc.’s Vice President of Operations. During his 30-year professional career and immediately prior to his affiliation with AEE Inc., he served as VP of Operations for a wholly-owned subsidiary of Ryland. From 1998 through 2006, Mr. Lantz was an Asset Manager for Halliburton Energy Services, during which time he led the efforts for several development programs for Halliburton’s clients, including the initial development of the Elm Coulee oil field. In that capacity, he and his team designed the technology for combining fracture stimulation in horizontal well bores, which advancement in technology was the key to unlocking the economic development of the Elm Coulee Field. This technology is being applied worldwide in other unconventional reservoirs in both gas and oil. Mr. Lantz also served as U.S. Operations Manager for Enerplus Resources (USA) Corporation after it acquired a major interest in the Elm Coulee Field from Lyco Oil Corporation. His expertise is reservoir and completion engineering. His recent work has been focused on development of unconventional resource plays in the Rockies, including the Bakken, Three Forks, Wasatch, and Mesaverde Formations. Mr. Lantz received a BS in Chemical Engineering from University of Southern California and engaged in graduate studies at Colorado State University in Mechanical Engineering. From October 5, 2010 to March 17, 2012, he served on the board of directors of Passport.

John Anderson – Mr. Anderson was appointed as one of our directors on November 4, 2005. From December 1994 to the present, he has served as President of Axiom Consulting Partners, a personal consulting and investing company primarily involved in capital raising for private and public companies in North America, Europe, and Asia. Mr. Anderson is the founder and General Partner of Aquastone Capital Partners LLC, a New York-based private gold and special situations fund and serves as the President of Purplefish Capital Ltd., which specializes in financial consulting with small-to mid-cap companies in the resource sector. Mr. Anderson received a BA from University of Western Ontario. He serves as a director or an executive officer of a number of publicly traded natural resources companies with operations around the world:

· Blue Note Mining Inc. (TSX – Venture Exchange), a gold company in Quebec, Canada – director since August 2009.

· Cadan Resources Corp. (TSX – Venture Exchange), a gold and copper producing company operating in the Philippines – director since February 2007, becoming the Chairman of the Board in January 2010 and its Executive Chairman in October 2010.

· Dawson Gold Corporation (TSX – Venture Exchange), a mineral exploration company – director since March 2008.

· Huakan International Mining, Inc. (TSX – Venture Exchange), a gold and exploration company in British Columbia, Canada and Washington State – director since June 2010.

· Northern Freegold Resources Ltd. (TSX – Venture Exchange), a gold exploration and development company in Yukon, Canada – director since January 2010.

· Passport Energy Ltd. (Canadian National Stock Exchange), a Canadian natural resources company – director since September 2009.

· Simba Gold Corp. (TSX – Venture Exchange), a company developing gold projects in Rwanda – director since January 2009 and serves as interim Chief Executive Officer.

· Soho Resources Corp. (TSX – Venture Exchange), a mining company in Mexico – director since November 2010.

· Sona Resource Corp. (TSX – Venture Exchange), a mine development company – director since June 2006.

· Strategic Resources Ltd. (Other OTC), a Nevada company in the business of exploring, acquiring and developing advanced precious metals and base metal properties – President, Chief Executive Officer, Secretary and Treasurer and a director since May 2004.

· Wescorp Energy, Inc. (OTC Bulletin Board), an oil and gas operations solution and engineering company – director between October 2001 and May 2009, Secretary and Treasurer from April 2003 to May 2009 and President and Chief Executive Officer between March 2003 and May 2004.

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Andrew P. Calerich – Mr. Calerich was appointed as one of our directors on February 21, 2012. From July 2003 until its merger into Hess Bakken Investments I Corporation (a wholly-owned subsidiary of Hess Corporation) in December 2010, he held various positions, including president, chief financial officer, and director of American Oil & Gas Inc. Prior to the merger, American Oil & Gas Inc. was a publicly traded independent oil and gas exploration and production company that was engaged in the acquisition of oil and gas mineral leases and the exploration and development of crude oil and natural gas reserves and production, most recently in the Williston Basin of North Dakota and Montana. Since the merger, he has been on sabbatical from full-time employment. During his 20-year professional career, Mr. Calerich has served public companies engaged in upstream oil and gas businesses in a variety of capacities, most recently (January 2011) becoming an independent director for Earthstone Energy, Inc., a Delaware corporation, whose common stock is traded on the NYSE Amex tier. Earthstone is primarily engaged in the exploration, development, and production of oil and natural gas properties, whose operating activities are concentrated in the North Dakota and Montana portions of the Williston basin, the southern portions of Texas, onshore portions of the Gulf Coast, and the Denver-Julesburg basin of Colorado. From August 2006 through September 2007, he served as a Director with Falcon Oil & Gas, Ltd. (TSXV). Mr. Calerich holds an inactive Certified Public Accountant license and earned BS degrees in both Accounting and Business Administration at Regis College, in Denver.

Paul E. Rumler – Mr. Rumler was appointed as one of our directors on July 26, 2007, and he became our corporate Secretary on October 22, 2007. Mr. Rumler also served as the sole member of our Special Committee that reviewed and evaluated the transactions that ultimately became the 2011 Merger. For more than the preceding five years, Mr. Rumler has been the principal shareholder and the managing shareholder at Rumler Tarbox Lyden Law Corporation, PC, in Denver, Colorado. He is a business attorney, whose areas of practice include general corporate and business planning matters and mergers and acquisitions, primarily in the closely held market place. Mr. Rumler is also a shareholder and a member of the board of directors of Stargate International, Inc., a manufacturer located in the Denver, Colorado, metropolitan area.

There are no family relationships among any of our directors, executive officers, or key employees.

Messrs. Anderson, Calerich, and Rumler are independent directors. The determination of independence of directors has been made using the definition of “independent director” contained in Section 803A of the NYSE Amex LLC Company Guide. All directors have participated in the consideration of director nominees. We do not have a policy with regard to attendance at board meetings. Our board of directors held 2 formal meetings during the year ended December 31, 2011, at which each then-elected director was present. All other proceedings of our board of directors were conducted by resolutions consented to in writing by all of the directors and filed with the minutes of the proceedings of our directors.

We do not have a policy with regard to consideration of nominations of directors. Nominations for directors are accepted from our security holders. There is no minimum qualification for a nominee to be considered by our directors. All of our directors will consider any nomination and will consider such nomination in accordance with his or her fiduciary responsibility to us and our stockholders.

Security holders may send communications to our board of directors by writing to American Eagle Energy Corporation, 2549 West Main Street, Suite 202, Littleton, Colorado 80120, attention: Board of Directors or to any specified director. Any correspondence received at the foregoing address to the attention of one or more directors is promptly forwarded to such director or directors.

Committees

Prior to the consummation of the 2011 Merger, we did not have standing audit, nominating, or compensation committees of our board of directors, or committees performing similar functions; our board of directors performed such functions. Our common stock is not currently listed on any national exchange and we are not required to maintain such committees by any self-regulatory agency. Prior to the 2011 Merger, we did not believe it was necessary for our board of directors to appoint such committees because the volume of matters that historically came before our board of directors for consideration permitted each director to give sufficient time and attention to such matters to be involved in all decision making. Following consummation of the 2011 Merger, our board of directors established three committees: the Audit Committee, Compensation Committee, and Nominating and Corporate Governance Committee.

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Audit Committee

Following consummation of the 2011 Merger and in connection with a potential listing of our common stock on the NYSE Amex, we established an Audit Committee in order to comply with the NYSE Amex rules, on which Messrs. Anderson, Calerich, and Rumler currently serve. Messrs. Anderson, Calerich, and Rumler each qualifies as an “independent director” within the meaning of Section 803A of the NYSE Amex LLC Company Guide and Rule 10A-3 under the Exchange Act. The Audit Committee is responsible for oversight of the integrity of the Company’s financial statements, the selection and retention of our independent registered public accounting firm, review of the scope of their audit function, and review of the audit reports rendered by them. The Audit Committee is not responsible for conducting audits, preparing financial statements, or the accuracy of any financial statements or filings, all of which remain the responsibility of management and our independent registered public accounting firm. Our board of directors has designated Mr. Calerich as the Audit Committee’s named financial expert as defined in Section 407 of the Sarbanes-Oxley Act and the SEC rules under that statute. Mr. Calerich’s biography is available on page 32. The charter of the Audit Committee may be found on our website (www.americaneagleenergy.com).

Compensation Committee

Following consummation of the 2011 Merger and in connection with a potential listing of our common stock on the NYSE Amex, we established a Compensation Committee, on which Messrs. Anderson, Findley, and Rumler currently serve. The Compensation Committee is responsible for reviewing and approving our goals and objectives relevant to compensation, evaluating the performance of our senior executive officers (including our Chief Executive Officer) with respect to such goals and objectives, approving the compensation of our senior executive officers (including our Chief Executive Officer), and overseeing our compensation and benefits policies. The charter of the Compensation Committee may be found on our website (www.americaneagleenergy.com).

Nominating and Corporate Governance Committee

Following completion of the 2011 Merger and in connection with a potential listing of our common stock on the NYSE Amex, we established a Nominating and Corporate Governance Committee, on which Messrs. Anderson, Findley, and Rumler currently serve. The Nominating and Corporate Governance Committee is responsible for recommending corporate governance principles and a code of conduct and ethics to our board of directors, overseeing adherence to the corporate governance principles adopted by our board of directors, recommending policies for compensation of directors, recommending criteria and qualifications for new directors, and recommending individuals to be nominated as directors and committee members. This function includes evaluation of new candidates, as well as evaluation of then-current directors.

The Nominating and Corporate Governance Committee will consider nominees recommended by our stockholders. A stockholder’s recommendation must be submitted in writing to: Nominating and Corporate Governance Committee, American Eagle Energy Corporation, 2459 W. Main Street, Suite 202, Littleton, Colorado 80120. The recommendation should include the nominee’s name and biography. The Nominating and Corporate Governance Committee may also require a candidate to furnish additional information regarding his or her eligibility and qualifications. The charter of the Nominating and Corporate Governance Committee may be found on our website (www.americaneagleenergy.com).

Compensation Committee Interlocks and Insider Participation

Historically, our board of directors has performed the functions of a compensation committee. With the exception of Mr. Colby, none of the current members of our board of directors is an employee or officer of ours. None of our officers or employees serve as a member of our newly-formed Compensation Committee.

Compliance with Section 16(a) of the Exchange Act

Section 16(a) of the Exchange Act requires officers, directors and persons who own more than 10% of any class of our securities registered under Section 12(g) of the Exchange Act to file reports of ownership and changes in ownership with the SEC. Officers, directors, and greater than 10% stockholders are required by SEC regulation to furnish us with copies of all Section 16(a) forms they file. To our knowledge, based solely on review of the copies of such reports furnished to us, during the fiscal year ended December 31, 2011, or with respect to such fiscal year, all Section 16(a) filing requirements were met.

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Code of Ethics

We adopted a Code of Conduct and Ethics that applies to all of our directors, executive officers, and employees. A copy of our Code of Conduct and Ethics is available on our website (www.americaneagleenergy.com) and is also available free of charge by writing to: Investor Relations, American Eagle Energy Corporation, 2459 W. Main Street, Suite 202, Littleton, Colorado 80120. Our Nominating and Corporate Governance Committee is responsible for the review and oversight of our ethical policies. Our management believes our Code of Conduct and Ethics is reasonably designed to deter wrongdoing and promote honest and ethical conduct; provide full, fair, accurate, timely, and understandable disclosure in public reports; comply with applicable laws; ensure prompt internal reporting of code violations; and provide accountability for adherence to the Code. Our board of directors must approve an amendment, exception, or waiver to the Code of Conduct and Ethics with respect to a director or an executive officer; the Nominating and Corporate Governance Committee must approve the same with respect to any other employee. In addition, a description of any exception, amendment, or waiver to the Code of Conduct and Ethics with respect to the Chief Executive Officer, Chief Financial Officer, our principal accounting officer, controller, or persons performing similar functions will be posted on our website within four business days following the date of such exception, amendment, or waiver.

Item 11. Executive Compensation.

We have not regularly compensated our directors in cash for their service as members of our board of directors. However, during 2011, Mr. Rumler received a payment of $11,786 in connection with his service as the sole member of the special committee of our board of directors that was formed specifically to review and evaluate the transactions that ultimately became the 2011 Merger. We do reimburse our directors for reasonable expenses in connection with attendance at board meetings and, commencing in 2012, have adopted a policy to compensate our directors for their attendance at our board of directors meetings.

The following table presents information concerning compensation paid to our Chief Executive Officer and our other executive officers in 2010 and 2011.

Summary Compensation Table

Name & Principal Position	Year		Salary		Bonus		Stock Awards		Option Awards		Non-Equity Incentive Plan Compensation		Nonqualified Deferred Compensation Earnings		All Other Compensation		Total
			($)		($)		($)		($)		($)		($)		($)		($)
Bradley M. Colby		2011		189,000		100,000		0		0		0		0		0		289,000
President, CEO, and Treasurer		2010		174,000		26,100		0		0		0		0		0		200,100
Kirk Stingley		2011		—		—		—		—		—		—		—		—
Chief Financial Officer(1)		2010		150,531		0		0		0		0		0		0		150,531
Thomas Lantz(2)		2011		10,323		0		0		0		0		0		0		10,323
Chief Operating Officer		2010		—		—		—		—		—		—		—		—

(1) Effective January 1, 2012, we appointed Kirk Stingley as our Chief Financial Officer. Mr. Stingley previously served in that capacity for us from June 2, 2008, until November 1, 2010.

(2) Mr. Lantz’s employment commenced on December 20, 2012, immediately following the closing of the 2011 Merger.

Narrative Disclosure to Summary Compensation Table

Compensation Philosophy

The Company’s basic objectives for executive compensation are to recruit and keep top quality executive leadership focused on attaining long-term corporate goals and increasing stockholder value.

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Employment Agreements

We have entered into written employment agreements with each of our executive officers, the material terms of which are:

Officer	Compensation	Term
Bradley M. Colby	$204,000.00 per year	3 Year Term
Thomas Lantz	$204,000.00 per year	3 Year Term
Kirk A. Stingley	$150,000.00 per year	2 Year Term

We may terminate In the event that we terminate Mr. Colby’s or Mr. Lantz’s employment “without cause” or such officer terminates his employment “for good reason,” as each such term is defined in his respective employment agreement, then such individual would be entitled to the following benefits: (i) payment of all accrued salary through the date of such termination, payment for all accrued, but unused, vacation, and reimbursement of all business expenses; (ii) upon the signing and delivering to us a general release of all claims against us, a severance payment equal to one times his then-current annual base salary; and (iii) continuation of group health, vision, and dental benefits in accordance with the relevant benefit plan. If, upon or within 12 months of, a “change of control,” as such term is defined in his respective employment agreement, such individual’s employment is terminated “without cause” or “for good reason,” then such individual would be entitled to the following benefits: (i) payment of all accrued salary through the date of such termination, payment for all accrued, but unused, vacation, and reimbursement of all business expenses; (ii) upon the signing and delivering to us a general release of all claims against us, a severance payment equal to two times his then-current annual base salary; and (iii) continuation of group health, vision, and dental benefits in accordance with the relevant benefit plan. If, within 60 days of a “change of control,” such individual terminates his employment for any reason other than “for good reason,” then such individual would be entitled to the following benefits: (i) payment of all accrued salary through the date of such termination, payment for all accrued, but unused, vacation, and reimbursement of all business expenses; (ii) upon the signing and delivering to us a general release of all claims against us, a severance payment equal to one times his then-current annual base salary; and (iii) continuation of group health, vision, and dental benefits in accordance with the relevant benefit plan. We may also terminate such officer’s employment “for cause,” as such term is defined in his respective employment agreement. In such event, such individual would be entitled to receive payment of all accrued salary through the date of such termination, payment for all accrued, but unused, vacation, and reimbursement of all business expenses.

In the event that we terminate Mr. Stingley’s employment “without cause” or he terminates his employment “for good reason,” as each such term is defined in his employment agreement, then he would be entitled to the following benefits: (i) payment of all accrued salary through the date of such termination, payment for all accrued, but unused, vacation, and reimbursement of all business expenses; (ii) upon the signing and delivering to us a general release of all claims against us, a severance payment of $35,000; and (iii) continuation of group health, vision, and dental benefits in accordance with the relevant benefit plan. If, upon or within 12 months of, a “change of control,” as such term is defined in his respective employment agreement, his employment is terminated “without cause” or “for good reason,” then he would be entitled to the following benefits: (i) payment of all accrued salary through the date of such termination, payment for all accrued, but unused, vacation, and reimbursement of all business expenses; (ii) upon the signing and delivering to us a general release of all claims against us, a severance payment equal to his then-current annual base salary; and (iii) continuation of group health, vision, and dental benefits in accordance with the relevant benefit plan. If, within 60 days of a “change of control,” he terminates his employment for any reason other than “for good reason,” then he would be entitled to the following benefits: (i) payment of all accrued salary through the date of such termination, payment for all accrued, but unused, vacation, and reimbursement of all business expenses; (ii) upon the signing and delivering to us a general release of all claims against us, a severance payment equal to one-half of his then-current annual base salary; and (iii) continuation of group health, vision, and dental benefits in accordance with the relevant benefit plan. We may also terminate his employment “for cause,” as such term is defined in his employment agreement. In such event, he would be entitled to receive payment of all accrued salary through the date of such termination, payment for all accrued, but unused, vacation, and reimbursement of all business expenses.

Stock Option Grants to Management

During 2011, we granted five-year options to purchase 975,000 shares of our common stock with a per-share exercise price of $1.18, 50% of which vest on December 28, 2013 and 50% of which vest on December 28, 2014, in each case subject to the grantee’s continued service as a director, officer, employee, or consultant, as applicable, through such dates. The exercise price at which these options were issued was equal to closing price of our common stock on the date of grant.

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In connection with the 2011 Merger, we granted replacement options to three of our directors or executive officers to purchase 1,732,988 shares of our common stock with a per-share exercise price of $0.74, in exchange for options to purchase shares of AEE Inc. common stock that had been tendered in connection with the 2011 Merger. The replacement options expire on December 30, 2015, the same date on which the original options were set to expire.

No stock options were granted during the year ended December 31, 2010.

In December 2010, 512,889 options to purchase shares of our common stock held by former members of our management team were exercised via “net exercises”.  As a result, we issued an aggregate of 227,961 shares of our common stock to the former employees.

As of December 31, 2011, the following stock options were outstanding.

Outstanding Equity Awards at 2011 Fiscal Year-End

Outstanding Equity Awards at 2011 Fiscal Year-End

Name	Number of Securities Underlying Unexercised  Options Exercisable			Number of Securities Underlying Unexercised Options Unexercisable		Option Exercise Price		Option Expiration Date
Bradley M. Colby		512,788	(1)		512,788	$	0.225	10/29/2014
		658,067	(1)(2)		658,067	$	0.74	12/30/2015
Kirk A. Stingley		150,000	(3)		150,000	$	1.18	12/28/2016
Thomas Lantz		435,866	(2)		435,866	$	0.74	12/30/2015
Richard Findley		581,152			581,152	$	0.74	12/30/2015
John Anderson		158,834	(1)		158,834	$	0.225	10/29/2014
		50,000	(3)		50,000	$	1.18	12/28/2016
Paul E. Rumler		153,834	(1)		692,250	$	0.05	10/30/2014
		250,000	(3)		250,000	$	1.18	12/28/2016

⁽¹⁾ All options vested 100% and were exercisable immediately upon grant.

⁽²⁾ These options were granted by the Company in exchange for options to purchase shares of AEE Inc. common stock that were tendered in connection with the 2011 Merger.

⁽³⁾ Fifty percent of the options granted on December 28, 2011, vest on December 28, 2012, and 50% of such options vest on December 28, 2013, in each event subject to the grantee’s continued service as a director or officer, as applicable, of the Company through such dates.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

The following table sets forth certain information regarding the shares of common stock beneficially owned or deemed to be beneficially owned as of April 11, 2012 by: (i) each person known to beneficially own more than 5% of our common stock, (ii) each of our directors, (iii) our executive officers named above in the summary compensation table, and (iv) all such directors and executive officers as a group.

Except as indicated by the footnotes below, our management believes, based on the information furnished to us, that the persons and entities named in the table below have sole voting and investment power with respect to all shares of our common stock that they beneficially own, subject to applicable community property laws.

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In computing the number of shares of our common stock beneficially owned by a person and the percentage ownership of that person, we deemed as outstanding shares of our common stock subject to options or warrants held by that person that are currently exercisable or exercisable within 60 days of April 16, 2012.  We did not deem such shares outstanding, however, for the purpose of computing the percentage ownership of any other person.

	Shares of Common		Percent of Common
	Stock Beneficially		Stock Beneficially
Name of Beneficial Owner / Management and Address	Owned (1)		Owned (1)
Bradley M. Colby (2)		3,480,258		7.49	%
Kirk A. Stingley (3)		45,687		*
Thomas Lantz (4)		2,360,114		5.10	%
Richard Findley (5)		2,874,510		6.19	%
John Anderson (6)		962,946		2.09	%
Andrew P. Calerich (7)		100,000		*
Paul E. Rumler (8)		192,398		*
All directors and executive officers as a group (7 persons) (9)		10,015,913		21.01	%
Five Percent Beneficial Owner:
Steven Swanson (10)		2,840,321		6.12	%

* Less than 1%

(1) The applicable percentage ownership is based on 45,842,778 shares of common stock outstanding at April 16, 2012.  The number of shares of common stock owned are those “beneficially owned” as determined under the rules of the Securities and Exchange Commission, including any shares of common stock as to which a person has sole or shared voting or investment power and any shares of common stock which the person has the right to acquire within 60 days through the exercise of any option, warrant or right.

(2) Includes 2,373,204 shares owned by Mr. Colby and an aggregate of 449,860 shares owned by five members of his immediate family as to which he disclaims beneficial ownership of an aggregate of 359,888 shares owned of record by his spouse and three of their adult children. Also includes 657,194 shares underlying options that are exercisable within 60 days of April 16, 2012. The business address for this person is 2549 W. Main Street, Suite 202, Littleton, Colorado 80120.

(3) The business address for this person is 2549 W. Main Street, Suite 202, Littleton, Colorado 80120.

(4) Includes 2,226,524 shares owned by Mr. Lantz and 133,590 shares owned by his adult child as to which he disclaims beneficial ownership. Also includes 433,248 shares underlying options that are exercisable within 60 days of April 16, 2012.

(5) Includes 2,296,847 shares held by Golden Vista Energy, LLC (“Golden Vista”). Mr. Findley is the sole member of Golden Vista and beneficially owns all of the shares held by Golden Vista. Also includes 577,663 shares underlying options that are exercisable within 60 days of April 16, 2012. The business address for this person is 27 North 27th Street, Suite 21G, Billings, Montana 59101.

(6) Includes 153,834 shares underlying options that are exercisable within 60 days of April 16, 2012. The business address for this person is Suite 916-925 West Georgia Street, Vancouver, British Columbia V6C 3L2.

(7) The business address for this person is PO Box 1571, Eastlake, Colorado 80614.

(8) The business address for this person is 1777 South Harrison Street, Suite 1250, Denver, Colorado 80210.

(9) Includes all shares and options referenced in notes 2 through 8.

(10) We obtained this information regarding share ownership from the Schedule 13G filed February 14, 2012, by Mr. Swanson. Includes 969,507 shares owned by Mr. Swanson, 969,507 shares owned by his spouse, and 161,822 shares each owned by their two adult children, as to which 1,293,151 shares Mr. Swanson disclaims beneficial ownership. Also includes 577,663 shares underlying options that are exercisable within 60 days of April 16, 2012. The business address for this person is 5720 S. Benton Circle, Littleton, Colorado 80123.

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Item 13. Certain Relationships and Related Transactions, and Director Independence.

Related Party Transactions

Passport Energy Ltd.

During June 2010, each of the Company and AEE Inc. purchased 500,000 shares of common stock of Passport, then known as Covenant Resources Ltd. (“Covenant”). Attached to each share of common stock purchased was a two-year warrant to purchase an additional share at a price of CdN$0.05 per share that expires on June 23, 2012. The cash consideration paid by the Company and AEE Inc. to acquire the shares totaled $24,733 and $25,547, respectively. As of December 31, 2011, the fair-market value of our investment in Passport was $146,714, which includes the 500,000 shares of Passport common stock owned by AEE Inc.

On December 22, 2010, Passport, the Company, and AEE Inc. signed a letter of intent allowing Passport a promoted cost on two wells to earn a position in the Hardy Bakken Field in southeastern Saskatchewan, Canada. Passport agreed to pay 38.5% of the drilling, completion, and equipping costs associated with each well and fulfilling other obligations in order to earn 25.0% working interest in certain lands. The final participation agreement was entered into effective April 15, 2011 and, subsequently in May 2011, the parties successfully drilled and completed the Hardy 4-16 well.

In December 2011, we modified our farmout agreement with Passport relative to the second development well. Under the terms of the revised agreement, Passport agreed to pay 23.1% of the drilling, completion, and equipping costs associated with the Hardy 14-17 well in order to earn a 15.0% working interest in it. Collectively, we commended drilling of the Hardy 14-17 well in December 2011.

John Anderson currently serves on the board of directors of Passport. Until March 2012, Messrs. Lantz and Mr. Findley served as a director and as an Executive Director of Passport, respectively.

Synergy Resources LLC

In January 2010, AEE Inc. engaged Synergy Resources LLC, a privately-held company (“Synergy”), to provide geological and engineering consulting services. On December 14, 2010, AEE Inc. acquired from Synergy all of Synergy’s working interests and certain other contractual rights of Synergy, including farmin rights and rights in and of a potential working interest in a Bakken oil-producing field located in Richland County, Montana. The Saskatchewan Prospects consist of two Bakken exploration prospects and one Three Forks exploration prospect, all located in the Williston Basin in Southeast Saskatchewan, Canada. The Benrude Prospect consists of approximately 743 acres in Roosevelt County, Montana, on which AEE Inc. currently expects to drill a development well that it believes to be low-risk. Mr. Findley, who is currently serves as a director of the Company, and Mr. Lantz, who currently serves as Chief Operating Officer of the Company, are each a member of Synergy. Mr. Colby, who currently serves as the Chief Executive Officer and a director of the Company, has assisted Synergy and the members of Synergy in the negotiations and closings of certain transactions relevant to certain rights and interests in properties that have prospects of exploration to certain oil and gas leases, as well as all intellectual property and records held by Synergy, in each case relating to the projects and prospects identified as the “Glacier Project,” the “Elm Coulee Project,” the “Saskatchewan Prospects,” and the “Benrude Prospect.” The Glacier Project consists of three prospective areas in the emerging Alberta Bakken play located in Glacier and Toole Counties, Montana, which have been identified as the “Bakken Basin Facies,” “Bakken Northern Dome Facies,” and the “Southern Dome Facies.” In January 2011, AEE Inc. concluded negotiations to acquire working interests and other rights in approximately 60,000 net acres in these areas. The Elm Coulee Project consists of a potential working interest in a Bakken oil-producing field located in Richland County, Montana. The Saskatchewan Prospects consist of two Bakken exploration prospects and one Three Forks exploration prospect, all located in the Williston Basin in Southeast Saskatchewan, Canada. The Benrude Prospect consists of approximately 760 acres in Roosevelt County, Montana, on which the Company currently expects to drill a development well that it believes to be low-risk.

Item 14. Principal Accountant Fees and Services.

Kelly & Co. (“Kelly”) audited our financial statements for the year ended December 31, 2010 and reviewed our quarterly financial statements for the interim period through November 25, 2011, as well as provided tax return and tax related services during that time. On November 25, 2011, we dismissed Kelly as our principal accountant and, on November 28, 2011, retained Hein & Associates (“Hein”). Hein audited our financial statements for the year ended December 31, 2011 and provided preparation services for the 2010 US federal and state tax returns.

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The aggregate fees billed for professional services by Kelly during the interim period ended November 25, 2011 and the year ended December 31, 2010 were as follows:

	2011		2010
Audit Fees	$	63,100	$	50,500
Audit Related Fees (1)		-		25,800
Tax Fees		6,100		2,500
All Other Fees		26,685		500
Total	$	95,885	$	53,500

(1) Represents fees associated with the review of our quarterly financial statements and SEC filings.

The aggregate fees billed for professional services by Hein for the year ended December 31, 2011 was as follows:

	2011
Audit Fees	$	80,000
Audit Related Fees	$	—
Tax Fees	$	—
All Other Fees	$	—
Total	$	80,000

It is our board of director’s policy and procedure to approve in advance all audit engagement fees and terms and all permitted non-audit services provided by our independent auditors. We believe that all audit engagement fees and terms and permitted non-audit services provided by our independent registered public accounting firm as described in the above table were approved in advance by our board of directors.

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PART IV

Item 15. Exhibits, Financial Statement Schedules.

INDEX TO EXHIBITS

Exhibit	Description of Exhibit
2.1	Agreement and Plan of Merger among Eternal Energy Corp., Eternal Sub Corp. and American Eagle Energy Inc., dated April 8, 2011. (Incorporated by reference to Exhibit 2.1 of our Registration Statement on Form S-4 filed May 4, 2011.)
2.1(a)	First Amendment to Agreement and Plan of Merger among Eternal Energy Corp., Eternal Sub Corp. and American Eagle Energy Inc., dated September 28, 2011 (Incorporated by reference to Exhibit 2.1(a) of our Current Report on Form 8-K filed September 28, 2011.)
3(i).1	Articles of Incorporation filed with the Nevada Secretary of State on July 25, 2003. (Incorporated by reference to Exhibit 3.1 of our Form 10-SB filed August 18, 2004.)
3(i).2	Certificate of Change filed with the Nevada Secretary of State effective November 7, 2005. (Incorporated by reference to Exhibit 3(i).2 of our Current Report on Form 8-K filed November 9, 2005.)
3(i).3	Articles of Merger filed with the Nevada Secretary of State effective November 7, 2005. (Incorporated by reference to Exhibit 3(i).3 of our Current Report on Form 8-K filed November 9, 2005.)
3(i).4	Articles of Merger filed with the Nevada Secretary of State effective November 30, 2011 (Incorporated by reference to Exhibit 3(i).4 of our Current Report on Form 8-K filed December 20, 2011.)
3(i).5	Articles of Merger filed with the Nevada Secretary of State effective November 30, 2011 (Incorporated by reference to Exhibit 3(i).5 of our Current Report on Form 8-K filed December 20, 2011.)
3(i).6	Certificate of Change filed with the Nevada Secretary of State effective November 30, 2011 (Incorporated by reference to Exhibit 3(i).6 of our Current Report on Form 8-K filed December 20, 2011.)
3(ii).1	Bylaws, adopted July 18, 2003. (Incorporated by reference to Exhibit 3.2 of our Form 10-SB filed August 18, 2004.)
3(ii).2	Amendment No. 1 to Bylaws, adopted November 4, 2005. (Incorporated by reference to Exhibit 3(ii) of our Current Report on Form 8-K filed November 9, 2005.)
3(ii).3	Amendment No. 2 to Bylaws, adopted February 22, 2011 (Incorporated by reference to Exhibit 3(ii).3 of our Current Report on Form 8-K filed February 23, 2011.)
4.1	American Eagle Energy Corporation 2012 Equity Incentive Plan (Incorporated by reference to Exhibit 4.1 of our Registration Statement on Form S-8 filed February 28, 2012.)
4.2	Non-qualified Stock Option Agreement, dated as of October 30, 2009, by and between the Registrant and Bradley M. Colby (Incorporated by reference to Exhibit 4.2 of our Registration Statement on Form S-8 filed February 28, 2012.)
4.3	Non-qualified Stock Option Agreement, dated as of October 30, 2009, by and between the Registrant and John Anderson (Incorporated by reference to Exhibit 4.3 of our Registration Statement on Form S-8 filed February 28, 2012.)
4.4	Non-qualified Stock Option Agreement, dated as of October 30, 2009, by and between the Registrant and Paul E. Rumler (Incorporated by reference to Exhibit 4.4 of our Registration Statement on Form S-8 filed February 28, 2012.)
4.5	Non-qualified Stock Option Agreement, dated as of December 30, 2010, by and between the Registrant and Bradley M. Colby (Incorporated by reference to Exhibit 4.5 of our Registration Statement on Form S-8 filed February 28, 2012.)
4.6	Non-qualified Stock Option Agreement, dated as of December 30, 2010, by and between the Registrant and Thomas G. Lantz (Incorporated by reference to Exhibit 4.6 of our Registration Statement on Form S-8 filed February 28, 2012.)
4.7	Reserved for future use.
4.8	Non-qualified Stock Option Agreement, dated as of December 30, 2010, by and between the Registrant and Richard Findley (Incorporated by reference to Exhibit 4.8 of our Registration Statement on Form S-8 filed February 28, 2012.)
4.9	Non-qualified Stock Option Agreement, dated as of December 28, 2011, by and between the Registrant and Paul E. Rumler (Incorporated by reference to Exhibit 4.9 of our Registration Statement on Form S-8 filed February 28, 2012.)

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4.10	Non-qualified Stock Option Agreement, dated as of December 28, 2011, by and between the Registrant and John Anderson (Incorporated by reference to Exhibit 4.10 of our Registration Statement on Form S-8 filed February 28, 2012.)
4.11	Reserved for future use.
4.12	Non-qualified Stock Option Agreement, dated as of December 28, 2011, by and between the Registrant and Kirk Stingley (Incorporated by reference to Exhibit 4.12 of our Registration Statement on Form S-8 filed February 28, 2012.)
4.13	Reserved for future use.
4.14	Reserved for future use.
4.15	Reserved for future use.
4.16	Reserved for future use.
4.17	Reserved for future use.
4.18	Reserved for future use.
4.19	Non-qualified Stock Option Agreement, dated as of February 21, 2012, by and between the Registrant and Andrew P. Calerich (Incorporated by reference to Exhibit 10.1 of our Current Report on Form 8-K filed February 21, 2012.)
4.20	Reserved for future use.
10.1	Agreement and Plan of Merger between Golden Hope Resources Corp. (renamed Eternal Energy Corp.) and Eternal Energy Corp., filed with the Nevada Secretary of State effective November 7, 2005. (Incorporated by reference to Exhibit 10.1 of our Current Report on Form 8-K filed November 9, 2005.)
10.2	Purchase and Sale Agreement by and between Eternal Energy Corp., PNP Petroleum I, LP., Cibolo Energy Operating, Inc. and Century Assets Corporation, dated June 25, 2010.  (Incorporated by reference to Exhibit 10.2 of our Quarterly Report on Form 10-Q filed August 16, 2010.)
10.3	Purchase and Sale Agreement between Eternal Energy Corp. and American Eagle Energy Inc. dated June 18, 2010.  (Incorporated by reference to Exhibit 10.3 of our Quarterly Report on Form 10-Q filed August 16, 2010.)
10.4	Reserved for future use.
10.5	Reserved for future use.
10.6	Letter Agreement by and between Eternal Energy Corp. and International Frontier Resources Corporation. (Incorporated by reference to Exhibit 10.1 of our Current Report on Form 8-K filed December 5, 2005.)
10.7	Reserved for future use.
10.8	Reserved for future use.
10.9	Letter Agreement by and between Eternal Energy Corp. and International Frontier Resources Corporation Relating to Quad 41 and Quad 42 dated January 30, 2006. (Incorporated by reference to Exhibit 10.1 of our Current Report on Form 8-K filed February 3, 2006.)
10.10	Amended and Restated Letter Agreement by and between Eternal Energy Corp. and International Frontier Resources Corporation Relating to Quad 14 dated January 30, 2006. (Incorporated by reference to Exhibit 10.2 of our Current Report on Form 8-K filed February 3, 2006.)
10.11*	Amended and Restated Employment Agreement by and between the Registrant and Bradley M. Colby effective July 1, 2011.
10.12*	Employment Agreement by and between the Registrant and Thomas G. Lantz, effective November 30, 2011.
10.13*	Employment Agreement by and between the Registrant and Kirk Stingley, effective January 1, 2012.
10.14*	Consulting Agreement by and between the Registrant and Richard Findley, effective November 30, 2011.
10.15	Reserved for future use.
10.16	Letter Agreement effective as of May 19, 2006, by and among Eternal Energy Corp., International Frontier Resources Corporation, Palace Exploration Company Limited, Oilexco Incorporated, and Challenger Minerals (North Sea) Limited (Incorporated by reference to Exhibit 10.1 of our Current Report on Form 8-K filed May 23, 2006).
10.17	Letter Agreement dated October 15, 2006, by and among Eternal Energy Corp., Fairway Exploration, LLC, Prospector Oil, Inc., and 0770890 B.C. Ltd. (Incorporated by reference to Exhibit 10.17 of our Annual Report on Form 10-KSB filed April 16, 2007).

41

10.18	Letter Agreement dated October 26, 2006, by and among Eternal Energy Corp., Fairway Exploration, LLC, Prospector Oil, Inc., 0770890 B.C. Ltd., and Rover Resources Inc. (Incorporated by reference to Exhibit 10.18 of our Annual Report on Form 10-KSB filed April 16, 2007).
10.19	Letter Agreement dated February 28, 2007, by and among Eternal Energy Corp., Pebble Petroleum Inc., Emerald Bay Holdings Ltd., and Heartland Resources Inc. (Incorporated by reference to Exhibit 10.19 of our Annual Report on Form 10-KSB filed April 16, 2007).
10.20	Agreement To Terminate DGWS Option (Incorporated by reference to Exhibit 10.20 of our Quarterly Report on Form 10-Q filed May 15, 2009.
10.21	Employment Agreement by and between Eternal Energy Corp. and Craig Phelps dated August 1, 2007 (Incorporated by reference to Exhibit 10.21 of our Quarterly Report on Form 10-Q filed May 15, 2009).
10.22	Employment Agreement by and between Eternal Energy Corp. and Kirk A. Stingley dated June 2, 2008 (Incorporated by reference to Exhibit 10.22 of our Quarterly Report on Form 10-Q filed May 15, 2009).
10.23	Amended and Restated Employment Agreement by and between Eternal Energy Corp. and Bradley M. Colby dated November 1, 2009 (Incorporated by reference to Exhibit 10.23 of our Quarterly Report on form 10-Q filed November 23, 2009).
10.24	First Amendment to the Amended and Restated Employment Agreement by and between Eternal Energy Corp. and Craig H. Phelps dated August 1, 2009 (Incorporated by reference to Exhibit 10.24 of our Quarterly Report on form 10-Q filed November 23, 2009).
10.25	First Amendment to the Employment Agreement by and between Eternal Energy Corp. and Kirk A. Stingley dated October 30, 2009 (Incorporated by reference to Exhibit 10.25 of our Quarterly Report on form 10-Q filed November 23, 2009).
10.26	Reserved for future use.
10.27	Lease Agreement dated January 1, 2009 by and between Eternal Energy Corp. and Oakley Ventures, LLC.  (Incorporated by reference to Exhibit 10.27 of our Annual Report on Form 10-K filed March 23, 2010.)
10.27a*	Lease Addendum, dated October 1, 2011 by and between Eternal Energy Corp. and Oakley Ventures, LLC, and Exhibit A thereto.
10.28	Purchase and Sale Agreement by and between Eternal Energy Corp. and Ryland Oil Corporation dated March 26, 2010.  (Incorporated by reference to Exhibit 10.28 of our Current Report on Form 8-K filed March 29, 2010.)
10.29	Purchase of Royalty Agreement by and between Eternal energy corp. and Ryland Oil Corporation dated March 26, 2010.  (Incorporated by reference to Exhibit 10.29 of our Current Report on Form 8-K filed March 29, 2010.)
10.29a	Amending Agreement to the Ryland / Eternal Royalty Purchase Agreement by and between Eternal Energy Corp. and Ryland Oil Corporation dated April 20, 2010.  (Incorporated by reference to Exhibit 10.29a of our Current Report on Form 8-K filed March 29, 2010.)
10.30	Termination Agreement (of the US Pebble Acquisition Agreement) by and between Eternal Energy Corp., Fairway Exploration LLC, Prospector Oil, Inc. Pebble Petroleum Inc. and Rover Resources Inc. dated April 29, 2010.  (Incorporated by reference to Exhibit 10.30 of our Quarterly Report on form 10-Q filed May 17, 2010.)
10.31	Termination Agreement (of the Canadian Pebble Acquisition Agreement) by and between Eternal Energy Corp., Fairway Exploration LLC, Prospector Oil, Inc. and Pebble Petroleum Inc. dated April 29, 2010.  (Incorporated by reference to Exhibit 10.31 of our Quarterly Report on form 10-Q filed May 17, 2010.)
10.32	Termination Agreement (of the US Prospect Acquisition Agreement) by and between Eternal Energy Corp., Fairway Exploration LLC, Prospector Oil, Inc., Pebble Petrole Inc., Rover Resources Inc., Steven Swanson, Richard L. Findley, Thomas G. Lantz and Ryland Oil Corporation dated May 11, 2010.  (Incorporated by reference to Exhibit 10.31 of our Quarterly Report on form 10-Q filed May 17, 2010.)
10.33	Termination Agreement (of the Canadian Prospect Acquisition Agreement) by and between Eternal Energy Corp., Fairway Exploration LLC, Prospector Oil, Inc., Pebble Petroleum Inc., Rover Resources Inc., Steven Swanson, Richard L. Findley, Thomas G. Lantz and Ryland Oil Corporation dated May 11, 2010.  (Incorporated by reference to Exhibit 10.33 of our Quarterly Report on form 10-Q filed May 17, 2010.)

42

10.34	Termination of Management Services Agreement by and between Eternal Energy Corp., Ryland Oil Corporation and Brad Colby dated December 1, 2009.  (Incorporated by reference to Exhibit 10.34 of our Quarterly Report on form 10-Q filed May 17, 2010.)
10.35	Amendment to the consulting Agreement by and between Eternal Energy Corp., Rover Resources Inc., and Brad Colby dated April 1, 2010.  (Incorporated by reference to Exhibit 10.35 of our Quarterly Report on form 10-Q filed May 17, 2010.)
10.36	Letter of Intent between Eternal Energy Corp. and American Eagle Energy Inc. dated February 22, 2011 (Incorporated by reference to Exhibit 10.36 of our Annual Report on Form 10-K filed March 23, 2011.)
10.37	Engagement Letter for Professional Services between Eternal Energy Corp. and C.K. Cooper & Company, dated February 25, 2011 (Incorporated by reference to Exhibit 10.37 of our Annual Report on Form 10-K filed March 23, 2011.)
10.38	Participation and Operating Agreement among Eternal Energy Corp., AEE Canada Inc. and Passport Energy Inc., dated April 15, 2011 (Incorporated by reference to Exhibit 10.38 of our Registration Statement on Form S-4 filed May 4, 2011.)
10.38a	Amendment to the participation and operating agreement among Eerg Energy Ulc, Aee Canada Inc and Passport Energy Inc., dated February 1, 2012 (Incorporated by reference to Exhibit 10.38a of our Annual Report on Form 10-K/A filed April 10, 2012.)
10.39^	Purchase and Sale Agreement among Eternal Energy Corp., American Eagle Energy Inc. and NextEra Energy Gas Producing, LLC, dated May 17, 2011 (Incorporated by reference to Exhibit 10.39 of our Amended Quarterly Report on Form 10-Q/A filed October 11, 2011.)
10.40^	Purchase and Sale Agreement among Eternal Energy Corp., American Eagle Energy Inc. and NextEra Energy Gas Producing, LLC, dated May 17, 2011 (Incorporated by reference to Exhibit 10.40 of our Amended Quarterly Report on Form 10-Q/A filed October 11, 2011.)
10.40a	First Amendment to Purchase and Sale Agreement among Eternal Energy Corp., American Eagle Energy Inc. and NextEra Energy Gas Producing, LLC, dated June 14, 2011(Incorporated by reference to Exhibit 10.40a of our Quarterly Report on Form 10-Q filed August 18, 2011.)
10.40b	Second Amendment to Purchase and Sale Agreement among Eternal Energy Corp., American Eagle Energy Inc. and NextEra Energy Gas Producing, LLC, dated July 25, 2011 (Incorporated by reference to Exhibit 10.40b of our Quarterly Report on Form 10-Q filed August 18, 2011.)
10.41^	Purchase and Sale Agreement among Eternal Energy Corp., American Eagle Energy Inc. and NextEra Energy Gas Producing, LLC, dated November 15, 2011 (Incorporated by reference to Exhibit 10.41 of our Annual Report on Form 10-K/A filed April 10, 2012.)
21.1*	List of Subsidiaries
23.1*	Consent of MHA Petroleum Consultants LLC in respect of Exhibit 99.1.
31.1*	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification of Chief Executive Officer pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*	Certification of Chief Financial Officer pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
99.1*	Report of MHA Petroleum Consultants LLC dated March 15, 2012.

* Filed herewith.

^ Portions omitted pursuant to a request for confidential treatment.

43

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

AMERICAN EAGLE ENERGY CORPORATION
By:	/s/ BRADLEY M. COLBY
	Bradley M. Colby
	President, Chief Executive Officer, Treasurer and Director
	Date: March 4, 2013

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature	Title	Date
/s/BRADLEY M. COLBY	President, Chief Executive Officer, Treasurer and Director (Principal Executive Officer)	March 4, 2013
Bradley M. Colby
/s/KIRK A. STINGLEY	Chief Financial Officer (Principal Accounting Officer)	March 4, 2013
Kirk A. Stingley
/S/THOMAS LANTZ	Chief Operating Officer	March 4, 2013
Thomas Lantz
/s/RICHARD FINDLEY	Director (Chairman)	March 4, 2013
Richard Findley
/s/JOHN ANDERSON	Director	March 4, 2013
John Anderson
/s/ ANDREW P. CALERICH	Director	March 4, 2013
Andrew P. Calerich
/s/PAUL E. RUMLER	Director and Secretary	March 4, 2013
Paul E. Rumler

44

American Eagle Energy Corporation

Consolidated Financial Statements

 As of December 31, 2011 and 2010 and

For Each of the Two Years in the Period Ended December 31, 2011

American Eagle Energy Corporation

Index to the Financial Statements

As of December 31, 2011 and 2010 and

For Each of the Two Years in the Period Ended December 31, 2011

Reports of Independent Registered Public Accounting Firms	F-1
Consolidated Balance Sheets as of December 31, 2011 and 2010	F-3
Consolidated Statements of Income and Comprehensive Income for Each of the Two Years in the Period Ended December 31, 2011	F-4
Consolidated Statements of Stockholders’ Equity for Each of the Two Years in the Period Ended December 31, 2011	F-6
Consolidated Statements of Cash Flows for Each of the Two Years in the Period Ended December 31, 2011	F-7
Notes to the Consolidated Financial Statements	F-9

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and

Stockholders of American Eagle Energy Corporation

We have audited the accompanying consolidated balance sheet of American Eagle Energy Corp. and subsidiaries (the “Company”) as of December 31, 2011, and the related consolidated statements of income and comprehensive income, stockholders’ equity, and cash flows for the year then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of American Eagle Energy Corp. and subsidiaries as of December 31, 2011, and the results of their operations and their cash flows for the year then ended, in conformity with U.S. generally accepted accounting principles.

/s/ Hein & Associates LLP

Denver, Colorado

April 16, 2012

F-1

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and

Stockholders of American Eagle Energy Corporation

We have audited the accompanying consolidated balance sheet of American Eagle Energy Corp. (formerly Eternal Energy Corp.) as of December 31, 2010, and the related consolidated statements of operations, stockholders’ equity, and cash flows for the year then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of American Eagle Energy Corp. (formerly Eternal Energy Corp.) as of December 31, 2010, and the results of its operations and its cash flows for the year ended December 31, 2010 in conformity with U.S. generally accepted accounting principles.

/s/ Kelly & Company

Costa Mesa, California

March 18, 2011

F-2

American Eagle Energy Corporation

Consolidated Balance Sheets

As of December 31, 2011 and 2010

	2011			2010
Current assets:
Cash	$	12,151,309		$	2,400,362
Trade receivables		3,105,079			248,461
Receivables from related parties		314,521			279,376
Prepaid expenses		45,690			30,106
Total current assets		15,616,599			2,958,305
Equipment and leasehold improvements, net of accumulated depreciation and amortization of $156,744 and $149,142, respectively		19,823			20,693
Oil and gas properties, under the full cost method – subject to amortization, net of accumulated depletion of $183,238 and $104,350, respectively		15,798,307			340,321
Oil and gas properties, under the full cost method – not subject to amortization		7,295,215			590,368
Marketable securities		1,107,721			1,117,716
Marketable securities of related party		146,713			197,453
Restricted cash		51,500			-
Deposits		5,345			5,345
Total assets	$	40,041,223		$	5,230,201
Current liabilities:
Accounts payable	$	6,002,204		$	430,699
Amounts due to working interest partners		2,233,267			-
Accrued income taxes		1,460,137			-
Total current liabilities		9,695,608			430,699
Asset retirement obligation		34,628			13,853
Deferred taxes		4,552,864			-
Total liabilities		14,283,100			444,552
Commitments and contingencies (Note 10)		-			-
Stockholders’ equity:
Common stock, $.001 par value, 194,444,444 shares authorized, 45,588,948 and 9,112,405 shares outstanding		45,589			9,112
Additional paid-in capital		25,948,311			9,231,199
Accumulated other comprehensive income		180,447			415,463
Accumulated deficit		(416,224	)		(4,870,125	)
Total stockholders’ equity		25,758,123			4,785,649
Total liabilities and stockholders’ equity	$	40,041,223		$	5,230,201

The accompanying notes are an integral part of the consolidated financial statements.

F-3

American Eagle Energy Corporation

Consolidated Statements of Income and Comprehensive Income

For Each of the Two Years in the Period Ended December 31, 2011

	2011			2010
Oil revenues	$	864,918		$	207,788
Operating expenses:
Oil and gas operating expenses		537,122			145,961
General and administrative expenses		2,148,126			1,352,732
Depreciation, depletion and amortization		96,787			153,284
Total operating expenses		2,782,035			1,651,977
Total operating loss		(1,917,117	)		(1,444,189	)
Interest income		5,286			9,615
Dividend income		69,822			23,759
Gain on the sale of oil and gas property – subject to amortization, net of costs		-			509,934
Gain on the sale of oil and gas property – not subject to amortization, net of costs		6,395,201			4,735,253
Impairment of assets held for sale		-			(57,769	)
Income before taxes		4,553,192			3,776,603
Income tax expense		(99,291	)		(892,112	)
Net income	$	4,453,901		$	2,884,491
Net income per common share:
Basic	$	0.49		$	0.31
Diluted	$	0.37		$	0.30
Weighted average number of shares outstanding:
Basic		9,143,099			9,436,340
Diluted		12,161,472			9,734,156

The accompanying notes are an integral part of the consolidated financial statements.

F-4

American Eagle Energy Corporation

Consolidated Statements of Income and Comprehensive Income

For Each of the Two Years in the Period Ended December 31, 2011

	2011			2010
Net income	$	4,453,901		$	2,884,491
Other comprehensive (loss) income:
Unrealized (losses) gains on securities, net of tax		(235,016	)		415,463
Comprehensive income	$	4,218,885		$	3,299,954

The accompanying notes are an integral part of the consolidated financial statements.

F-5

American Eagle Energy Corporation

Consolidated Statements of Stockholders’ Equity

For Each of the Two Years in the Period Ended December 31, 2011

										Accumulated
							Additional			Other						Total
	Common Stock						Paid-In			Comprehensive			Accumulated			Stockholders
	Shares			Amount			Capital			Income			Deficit			Equity
Balance, December 31, 2009		9,900,000		$	9,900		$	9,558,958		$	-		$	(7,754,616	)		1,814,242
Net exercise of stock options		227,961			228			(228	)		-			-			-
Repurchase and retirement of common stock		(1,015,556	)		(1,016	)		(327,531	)		-			-			(328,547	)
Unrealized gain on securities, net of tax		-			-			-			415,463			-			415,463
Net income		-			-			-			-			2,884,491			2,884,491
Balance, December 31, 2010		9,112,405		$	9,112		$	9,231,199		$	415,463		$	(4,870,125	)	$	4,785,649
Shares issued during acquisition		36,476,543			36,477			16,686,498			-			-			16,722,975
Stock based compensation		-			-			30,614			-			-			30,614
Unrealized loss on securities, net of tax		-			-			-			(235,016	)		-			(235,016	)
Net Income		-			-			-			-			4,453,901			4,453,901
Balance, December 31, 2011		45,588,948		$	45,589		$	25,948,311		$	180,447		$	(416,224	)	$	25,758,123

The accompanying notes are an integral part of the consolidated financial statements.

F-6

American Eagle Energy Corporation

Consolidated Statements of Cash Flows

For Each of the Two Years in the Period Ended December 31, 2011

	2011			2010
Cash flows provided by (used for) operating activities:
Net income	$	4,453,901		$	2,884,491
Adjustments to reconcile net income to net cash used by operating activities:
Non-cash transactions:
Stock-based compensation		30,614			-
Depreciation, depletion and amortization		96,787			153,284
Accretion of discount on asset retirement obligation		1,548			4,480
Impairment of assets held for sale		-			57,769
Provision for deferred income taxes		(385,846	)		-
Gain on the sale of oil and gas properties, subject to amortization		-			(509,934	)
Gain on the sale of oil and gas properties, not subject to amortization		(6,395,201	)		(4,735,253	)
Changes in operating assets and liabilities:
(Increase) decrease in prepaid expense		(8,115	)		16,278
Decrease in spud fees receivable		-			20,000
Increase in trade receivables		(568,916	)		(90,034	)
Increase in receivables from related parties		(314,521	)		(279,376	)
Increase in accounts payable		1,047,508			292,035
Increase in income taxes payable		485,137			-
Increase in amounts due to working interest partners		2,233,267			-
Net cash provided by (used for) operating activities		676,163			(2,186,260	)
Cash flows provided by (used for) investing activities:
Cash obtained in acquisition		5,598,916			-
Proceeds from the partial sale of the Pebble Beach Property		227,079			225,000
Proceeds from the partial sale of the Spyglass Prospect		3,777,793			-
Proceeds from the partial sale of the West Spyglass Prospect		5,456,548			-
Proceeds from the sale of overriding royalties		-			3,900,000
Proceeds from the sale of equipment		700			1,700
Additions to oil and gas properties		(5,928,820	)		(673,265	)
Additions to equipment and leasehold improvements		(7,432	)		(22,287	)
Purchase of certificates of deposit		(50,000	)		-
Purchase of marketable securities - related party		-			(24,733	)
Net cash provided by investing activities		9,074,784			3,406,415
Cash flows used for financing activities:
Repurchase and retirement of shares		-			(328,547	)
Net cash used for financing activities		-			(328,547	)
Net increase in cash		9,750,947			891,608
Cash - beginning of period		2,400,362			1,508,754
Cash - end of period	$	12,151,309		$	2,400,362

The accompanying notes are an integral part of the consolidated financial statements.

F-7

American Eagle Energy Corporation

Consolidated Statements of Cash Flows

For Each of the Two Years in the Period Ended December 31, 2011

Supplemental Disclosure of Cash Flow Information

	2011		2010
Cash paid during the period for:
Interest	$	-	$	-
Income taxes		10,438		892,112

Supplemental Disclosure of Non-Cash Investing and Financing Activities

	2011		2010
Stock issued in acquisition	$	16,722,975	$	-
Property additions included in accounts payable		1,223,505		-
Recording of asset retirement obligation		1,913		13,853
Marketable securities acquired in sale of oil and gas properties		-		874,973
Cashless exercise of stock options		-		1,026

The accompanying notes are an integral part of the consolidated financial statements.

F-8

American Eagle Energy Corporation

Notes to the Consolidated Financial Statements

As of December 31, 2011 and 2010 and

For Each of the Two Years in the Period Ended December 31, 2011

1. Description of Business

American Eagle Energy Corporation (the “Company”) was incorporated in the state of Nevada in March 2003 under the name Golden Hope Resources. In July 2005, the Company changed its name to Eternal Energy Corp. In December 2011, the Company changed its name to American Eagle Energy Corporation, in connection with its acquisition of, and merger with, American Eagle Energy Inc. (“AEE Inc.”). See Note 3.

The Company engages in the acquisition, exploration, development and producing of oil and gas properties. At December 31, 2011, the Company had entered into participation agreements related to oil and gas exploration projects in the Spyglass Property and West Spyglass Prospect, located in Divide County, North Dakota, and Sheridan County, Montana and the Hardy Property, located in southeastern Saskatchewan, Canada. In addition, the Company owns working interests in mineral leases located in Richland, Roosevelt and Toole Counties in Montana.

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, American Eagle Energy Inc., EERG Energy ULC (Canadian) and AEE Canada Inc. (Canadian). All material intercompany accounts, transactions and profits have been eliminated.

In December 2011, the Company announced a 1.0-for-4.5 reverse stock split. As a result, all share and per share information included in these consolidated financial statements has been presented on a post-reverse-split basis.

Revenue Recognition

Revenue from the sale of oil and gas is recognized when the terms of the sale have been finalized and the oil has been delivered to the purchaser. The Company records the sale of its interests in prospects when the terms of the transaction are final and the sales price is determinable. Working interest, royalty and net profit interests are recognized as revenue when oil and gas is sold.

Concentration of Credit Risk

At December 31, 2011, the Company had $11,549,926 on deposit that exceeded the United States (FDIC) federally insurance limit of $250,000 per bank.

F-9

American Eagle Energy Corporation

Notes to the Consolidated Financial Statements

As of December 31, 2011 and 2010 and

For Each of the Two Years in the Period Ended December 31, 2011

Foreign Currency Adjustments

The Company’s functional currency is the US Dollar. All transactions are translated using historical exchange rates. Gains and losses resulting from foreign currency transactions are included in the Company’s results of operations. The Company’s wholly-owned subsidiary, EERG Energy ULC, which holds title to the Company’s Canadian assets and operates the Hardy Property wells, routinely, conducts transactions denominated in Canadian Dollars. The Company recognized exchange losses totaling $17,886 and $24,104 for the years ended December 31, 2011 and 2010, respectively.

Cash and Cash Equivalents

Cash equivalents consist of time deposits and liquid debt investments with original maturities of three months or less at the time of purchase.

Restricted Cash

At December 31, 2011, the Company has $51,500 of restricted cash. The restricted cash consists of cash bonds required by the State of North Dakota in order to pursue future drilling in the state. The cash is held in custody by the issuing bank in the form of certificates of deposit and is restricted as to withdrawal or use. Interest income earned from the certificates of deposit is paid to the Company upon maturation of the certificates of deposit. The certificates of deposit have six-month terms. However, it is the Company’s intention to renew the certificates of deposit upon maturation and to leave the cash bond in place for the foreseeable future. Accordingly, the restricted cash has been classified as a non-current asset.

Components of Other Comprehensive Income

Comprehensive income consists of net income and other gains and losses affecting stockholders’ equity that, under generally accepted accounting principles, are excluded from net income. For the Company, such items consist solely of unrealized gains (losses) on marketable securities.

Receivables

Receivables are stated at the amount the Company expects to collect. The Company considers the following factors when evaluating the collectability of specific receivable balances: credit-worthiness of the debtor, past transaction history with the debtor, current economic industry trends, and changes in debtor payment terms. If the financial condition of the Company’s debtors were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required.

F-10

American Eagle Energy Corporation

Notes to the Consolidated Financial Statements

As of December 31, 2011 and 2010 and

For Each of the Two Years in the Period Ended December 31, 2011

The Company maintains an estimated allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. Changes to the allowance for doubtful accounts made as a result of management’s determination regarding the ultimate collectability of such accounts are recognized as a charge to the Company’s earnings. Specific receivable balances that remain outstanding after the Company has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to the receivable. 

At December 31, 2011, the Company has determined that all receivable balances are fully collectible and, accordingly, no allowance for doubtful accounts has been recorded.

Marketable Securities

The Company determines the appropriate classification of its investments in equity securities at the time of purchase and reevaluates such determinations at each balance sheet date. Marketable equity securities not classified as held-to-maturity or as trading are classified as available-for-sale, and are carried at fair market value, with the unrealized gains and losses, net of tax, included in the determination of comprehensive income and reported in stockholders’ equity.

The fair value of substantially all securities is determined by quoted market prices. The estimated fair value of securities for which there are no quoted market prices is based on similar types of securities that are traded in the market. Warrants to purchase common stock are valued using the Black-Scholes Option Pricing Model.

Equipment and Leasehold Improvements

Equipment and leasehold improvements are recorded at cost. Expenditures for major additions and improvements are capitalized and depreciated or amortized over the estimated useful lives of the related assets using the straight-line method for financial reporting purposes. The Company uses other depreciation or amortization methods (generally accelerated) for tax purposes, where appropriate. The estimated useful lives for significant property and equipment categories are as follows:

Equipment	3 years
Leasehold improvements	lesser of useful life or lease term

When equipment and improvements are retired or otherwise disposed of, the cost and the related accumulated depreciation are removed from the Company’s accounts and any resulting gain or loss is included in the results of operations for the respective period.

Expenditures for minor replacements, maintenance and repairs are charged to expense as incurred.

F-11

American Eagle Energy Corporation

Notes to the Consolidated Financial Statements

As of December 31, 2011 and 2010 and

For Each of the Two Years in the Period Ended December 31, 2011

Oil and Gas Properties and Prospects

The Company follows the full-cost method of accounting for its investments in oil and gas properties. Under the full-cost method, all costs associated with the acquisition, exploration or development of properties are capitalized into appropriate cost centers within the full-cost pool. Internal costs that are capitalized are limited to those costs that can be directly identified with acquisition, exploration, and development activities undertaken and do not include any costs related to production, general corporate overhead, or similar activities. Cost centers are established on a country-by-country basis.

Capitalized costs within the cost centers are amortized on the unit-of-production basis using proved oil and gas reserves. The cost of investments in unproved properties and major development projects are excluded from capitalized costs to be amortized until it is determined that proved reserves can be assigned to the properties. Until such a determination is made, the properties are assessed annually to ascertain whether impairment has occurred. The costs of drilling exploratory dry holes are included in the amortization base immediately upon determination that the well is dry.

As of the end of each reporting period, the capitalized costs of each cost center are subject to a ceiling test, in which the costs may not exceed the cost center ceiling. The cost center ceiling is equal to i) the present value of estimated future net revenues computed by applying average monthly prices of oil and gas reserves (with consideration of price changes only to the extent provided by contractual arrangements) to estimated future production of proved oil and gas reserves as of the date of the latest balance sheet presented, less estimated future expenditures (based on current costs) to be incurred in developing and producing the proved reserves computed using a discount factor of ten percent and assuming continuation of existing economic conditions; plus ii) the cost of properties not being amortized; plus iii) the lower of cost or estimated fair value of unproven properties included in the costs being amortized; less iv) income tax effects related to differences between the book and tax basis of the properties. If unamortized costs capitalized within a cost center, less related deferred income taxes, exceed the cost center ceiling, the excess is charged to expense and separately disclosed during the period in which the excess occurs.

Proceeds received from disposals are credited against accumulated costs except when the sale represents a significant disposal of reserves, in which case a gain or loss is recognized. The sum of net capitalized costs and estimated future development and abandonment costs for each cost center is depleted using the equivalent unit-of-production method, based on proved oil and gas reserves. Excluded from amounts subject to depletion are costs associated with unevaluated properties or properties for which no proved reserves have been identified.

F-12

American Eagle Energy Corporation

Notes to the Consolidated Financial Statements

As of December 31, 2011 and 2010 and

For Each of the Two Years in the Period Ended December 31, 2011

Asset Retirement Obligations

The Company records estimated asset retirement obligations related to the future plugging and abandoning of its existing wells in the period in which the wells are completed. The initial recording of an asset retirement obligation results in an increase in the carrying amount of the related long-lived asset and the creation of a liability. The portion of the asset retirement obligation expected to be realized during the next 12-month period is classified as a current liability, while the portion of the asset retirement obligation expected to be realized during subsequent periods is discounted and recorded at its net present value. Because the Company does not have any outstanding interest bearing debt, the discount factor used to determine the net present value of the Company’s asset retirement obligation is 10%, which represents the Company’s estimated incremental borrowing rate as of December 31, 2011.

Changes in the noncurrent portion of the asset retirement obligation due to the passage of time are accreted using the interest method. The amount of change is recognized as an increase in the liability and an accretion expense in the statement of operations. Changes in either the current or noncurrent portion of the Company’s asset retirement obligation resulting from revisions to the timing or the amount of the original estimate of undiscounted cash flows are recognized as an increase or a decrease to the carrying amount of the liability and the related long-lived asset.

Stock Repurchase Program

The Company implemented a stock repurchase program during 2010, for which it utilized the cost method to account for shares reacquired under the program. Under the cost method, common stock is reduced by the par value of the shares repurchased. The difference between the total consideration given to reacquire the shares, including any broker commissions or other transaction costs, and the par value of the shares acquired, is recorded as a reduction of additional paid in capital. The Company immediately retires all repurchased shares. The Company ceased its open market purchases of common stock effective November 1, 2010.

Stock-Based Compensation

The Company measures compensation cost for all stock-based awards at fair value on the date of grant and recognizes compensation expense in its statements of operations over the service period that the awards are expected to vest. The Company has elected to recognize compensation cost for all options with graded vesting on a straight-line basis over the vesting period of the entire option. The Company recognized stock-based compensation expense of $30,614 and $0 for the years ended December 31, 2011 and 2010, respectively.

F-13

American Eagle Energy Corporation

Notes to the Consolidated Financial Statements

As of December 31, 2011 and 2010 and

For Each of the Two Years in the Period Ended December 31, 2011

Fair Value of Financial Instruments

Fair value is the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. Hierarchy Levels 1, 2 or 3 are terms for the priority of inputs to valuation techniques used to measure fair value. Hierarchy Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Hierarchy Level 2 inputs are inputs other than quoted prices included within Level 1 that are directly or indirectly observable for the asset or liability. Hierarchy Level 3 inputs are inputs that are not observable in the market.

The fair value measurements of the Company’s financial instruments at December 31, 2011 and December 31, 2010 were as follows:

December 31, 2011	Level 1		Level 2		Level 3		Total
Cash & equivalents	$	12,151,309	$	-	$	-	$	12,151,309
Marketable securities - related party		-		146,713		-		146,713
Marketable securities		1,107,721		-		-		1,107,721
Restricted cash		51,500		-		-		51,500
	$	13,310,530	$	146,713		-	$	13,457,243

December 31, 2010	Level 1		Level 2		Level 3		Total
Cash & equivalents	$	2,400,362	$	-	$	-	$	2,400,362
Marketable securities - related party		-		197,453		-		197,453
Marketable securities		1,117,716		-		-		1,117,716
	$	3,518,078	$	197,453		-	$	3,715,531

The Company uses level 2 inputs to determine the fair value of its marketable securities - related party, which consists of common stock and warrants in an entity which is traded on the Canadian National Stock Exchange. The warrants are valued using the Black Scholes Option Pricing Model which includes a calculation of historical volatility of the stock.

Basic and Diluted Earnings Per Share

Basic earnings per common share is computed by dividing net earnings available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is computed in the same way as basic earnings per common share except that the denominator is increased to include the number of additional common shares that would be outstanding if all potential common shares had been issued that were dilutive. See Note 11 for the calculation of basic and diluted weighted average common shares outstanding for the years ended December 31, 2011 and 2010.

F-14

American Eagle Energy Corporation

Notes to the Consolidated Financial Statements

As of December 31, 2011 and 2010 and

For Each of the Two Years in the Period Ended December 31, 2011

Income Taxes

The Company follows the liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are recognized for the future tax benefits and consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax balances. Deferred income tax assets and liabilities are measured using enacted or substantially enacted tax rates expected to apply to the taxable income in the years in which those differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment or substantive enactment. U.S. deferred tax liabilities are not recognized on profits that are expected to be permanently reinvested in Canada and, thus, are not considered to be available for distribution to the parent company. Net operating loss carry forwards and other deferred tax assets are reviewed annually for recoverability and, if necessary, are recorded net of a valuation allowance.

Use of Estimates and Assumptions

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires the use of estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent obligations in the financial statements and accompanying notes. The Company’s most significant assumptions are the estimates used in the determination of the deferred income tax asset valuation allowance, the valuation of oil and gas reserves to which the Company owns rights, estimates related to the Company’s asset retirement obligations, valuation of the warrants held by the Company as investments and valuation of assets acquired via merger. The estimation process requires assumptions to be made about future events and conditions, and as such, is inherently subjective and uncertain. Actual results could differ materially from these estimates.

New Accounting Pronouncements

In May 2011, the FASB issued Accounting Standards Update 2011-04, Fair Value Measurement (Topic 820), Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS. Many of the amendments in this update change the wording used in the existing guidance to better align U.S. generally accepted accounting principles with International Financial Reporting Standards and to clarify the FASB’s intent on various aspects of the fair value guidance. This update also requires increased disclosure of quantitative information about unobservable inputs used in a fair value measurement that is categorized within Level 3 of the fair value hierarchy. This update is effective for financial periods beginning after December 15, 2011 and should be applied retrospectively. Other than requiring additional disclosures, the adoption of this new guidance is not expected to have a significant impact on the Company’s consolidated financial statements.

F-15

American Eagle Energy Corporation

Notes to the Consolidated Financial Statements

As of December 31, 2011 and 2010 and

For Each of the Two Years in the Period Ended December 31, 2011

In June 2011, the FASB issued Accounting Standards Update 2011-05, Comprehensive Income (Topic 220). This new guidance requires the components of net income and other comprehensive income to either be presented in one continuous statement, referred to as the statement of comprehensive income, or in two separate, but consecutive statements. This new guidance eliminates the current option to report other comprehensive income and its components in the statement of stockholders’ equity. While the new guidance changes the presentation of comprehensive income, there are no changes to the components that are recognized in net income or other comprehensive income under current accounting guidance. The Company has adopted the new guidance in its financial statements as of and for the years ended December 31, 2011 and December 31, 2010.

In December 2011, the FASB issued Accounting Standards Update No. 2011-12 (“ASC No. 2011-12”), a deferral to one of the requirements of ASC No. 2011-05. ASC No. 2011-12 defers the specific requirement to present items that are reclassified from AOCI to net income separately with their respective components of net income and OCI. This requirement has been deferred indefinitely at this time.

3. Acquisition of American Eagle Energy Inc.

On December 20, 2011, the Company finalized its merger transaction with AEE Inc. Prior to the transaction, AEE Inc. operated as a publicly traded company with oil and gas holdings in North Dakota, Texas and southeastern Saskatchewan, Canada and was a working interest partner to the Company with respect to its Hardy Property and certain proved oil and gas properties and unproven oil and gas prospects located in North Dakota. The Company acquired AEE Inc. in order to leverage the two companies’ respective oil and gas holdings.

Pursuant to the terms of the Merger Agreement, the Company issued 36,476,543 shares of its common stock to acquire 100% of the then-outstanding shares of AEE Inc.’s common stock, which resulted in AEE Inc. becoming a wholly owned subsidiary of the Company. Immediately subsequent to the transaction, legacy AEE Inc. stockholders owned approximately 80% of the shares of the Company’s outstanding common stock, exclusive of outstanding options to purchase shares of the Company’s common stock and shares of AEE Inc.’s common stock. The shares of common stock that were issued in connection with the Company’s acquisition of AEE Inc. were registered with the SEC on November 11, 2011.

Despite the fact the AEE Inc.’s legacy stockholders held approximately 80% of the Company’s outstanding shares immediately following the merger, other factors present in the structure of the transaction resulted in the Company being determined to be the legal and acquiring entity. Specific factors that led to this conclusion included the fact that the majority of the merged company’s officers and Board of Directors membership consists of legacy Eternal Energy Corp. officers and directors. In addition, there is no single stockholder or organized group of stockholders of the former AEE Inc. that holds the largest minority voting interest in the merged company. Rather, the individual who owns the largest number of shares of the merged company’s voting stock is a legacy Eternal Energy stockholder, was a member of the Company’s senior management and is a member of the merged entities’ senior management team.

F-16

American Eagle Energy Corporation

Notes to the Consolidated Financial Statements

As of December 31, 2011 and 2010 and

For Each of the Two Years in the Period Ended December 31, 2011

The Company’s historical financial statements have been prepared to give effect to the merger and to represent the historical operations of the Company through the merger date and the consolidated results of operations for the period from the merger date through December 31, 2011. The merger was structured to qualify as a “tax-free” transaction pursuant to Internal Revenue Service regulations.

The following table summarizes the consideration paid by the Company to acquire AEE Inc. and the net assets acquired:

Consideration given:
36,476,543 shares of the Company’s common stock	$	16,722,975
Identifiable assets acquired and liabilities assumed:
Financial assets acquired	$	6,032,799
Oil and gas properties acquired (amortizable)		12,781,348
Oil and gas properties acquired (non-amortizable)		7,290,500
Financial liabilities assumed		(9,381,672	)
Net assets acquired	$	16,722,975

The amounts presented above are based on estimated fair market values and are subject to change as additional information becomes available. Because the common stock of both companies is very thinly traded, the Company estimated the fair market value of the shares issued based on an independent valuation.

The financial assets acquired included cash and cash equivalents of $5,598,916, trade and other receivables totaling $351,558, prepaid expenses totaling $7,468, marketable securities of a related party totaling $73,357 and restricted cash totaling $1,500.

The financial liabilities assumed consisted of trade payables and accrued liabilities totaling $3,300,491, amounts due to the Company totaling $251,081 and long-term asset retirement obligations totaling $17,314. The Company recorded a deferred tax liability in the amount of $4,837,786, which represents the future tax effects of the fair market value adjustments applied to the assets of AEE Inc. upon acquisition and current income taxes payable totaling $975,000.

F-17

American Eagle Energy Corporation

Notes to the Consolidated Financial Statements

As of December 31, 2011 and 2010 and

For Each of the Two Years in the Period Ended December 31, 2011

Supplemental Pro Forma Information (Unaudited)

The Company’s consolidated statement of income for the year ended December 31, 2011 includes AEE Inc.’s revenues and net losses for the period December 21, 2011 through December 31, 2011 of $42,308 and ($144,525), respectively.

Had the merger transaction occurred effective January 1, 2010, the Company’s consolidated financial statements for the years ended December 31, 2011 and 2010 would have been as follows (unaudited):

	Revenue		Net Income
2011 supplemental pro forma information	$	13,165,575	$	8,595,814
2010 supplemental pro forma information	$	5,585,849	$	2,331,256

The following assumptions were used to prepare the supplemental pro forma financial information presented above:

· No adjustments were made to reflect economies of scale or other potential cost savings that may have been achieved had the merger occurred on January 1, 2010.

· No adjustments were made relative to alternative financing strategies that may have been implemented on a combined entity basis.

· The estimated fair market value of AEE Inc.’s oil and gas properties, subject to amortization, is based on the net present value of future cash flows from proven reserves as of December 31, 2011, as calculated by an independent, third-party engineering firm.

· The estimated fair market values of AEE Inc.’s oil and gas properties, not subject to amortization, were determined based on prevailing lease prices associated with acreage located in close proximity to the acquired properties and/or the Company’s recent acreage purchase transactions as of or near to December 20, 2011.

F-18

American Eagle Energy Corporation

Notes to the Consolidated Financial Statements

As of December 31, 2011 and 2010 and

For Each of the Two Years in the Period Ended December 31, 2011

4. Marketable Securities

Available-for-sale marketable securities at December 31, 2011 consist of the following:

			Gains in		Losses in
			Accumulated		Accumulated
	Estimated		Other		Other
	Fair		Comprehensive		Comprehensive
	Value		Income		Income
December 31, 2011
Noncurrent assets:
Common stock	$	1,107,721	$	232,748	$	-
Common stock and warrants - related party		146,713		48,623		-
Total available-for-sale marketable securities	$	1,254,434	$	281,371	$	-
December 31, 2010:
Noncurrent assets:
Common stock	$	1,117,716	$	242,743	$	-
Common stock and warrants - related party		197,453		172,720		-
Total available-for-sale marketable securities	$	1,315,169	$	415,463	$	-

The fair value of substantially all securities is determined by quoted market prices. The estimated fair value of securities for which there are no quoted market prices is based on similar types of securities that are traded in the market. Warrants to purchase common stock are valued using the Black-Scholes Option Pricing Model, with the following assumptions;

Risk-free interest rate		0.21	%
Expected volatility of common stock		223	%
Dividend yield	$	0.00
Expected life of warrants		0.5 years

A marketability discount was applied to the related party shares and warrants. There were no sales of marketable securities for the years ended December 31, 2011 or 2010.

5. Sale of Royalty and Property Interests

Effective April 1, 2010 the Company sold its gross overriding royalty interest in approximately 264,000 net acres within an area of mutual interest located in southeastern Saskatchewan to Ryland. In addition to cash consideration received of $2.9 million, the Company received 2,145,883 shares of Ryland’s common stock, which were valued at approximately $874,973 as of the date of sale, and an assignment of Ryland’s 100% working interest in approximately 4,480 net acres located in Saskatchewan, and related equipment (the “Hardy Property”). At the time of the sale, the Hardy Property had an estimated fair market value of $238,681.

F-19

American Eagle Energy Corporation

Notes to the Consolidated Financial Statements

As of December 31, 2011 and 2010 and

For Each of the Two Years in the Period Ended December 31, 2011

Also effective April 1, 2010, the Company entered into a Purchase and Sale Agreement with Ryland’s wholly-owned subsidiary, Rover Resources Inc. (“Rover”), in which the Company agreed to sell its ten percent working interest in approximately 700 net acres located in North Dakota to Rover for $1 million cash. The acreage sold was part of the Company’s Pebble Beach Property, which, at the time, was included in the US cost center of the Company’s full-cost pool that is not subject to amortization.

In June 2010, the Company sold its 75% working interest in the West Ranch Field for cash consideration totaling $262,500 and the assumption, by the purchaser, of all plugging, abandonment and environmental reclamation liabilities.

In May 2011, the Company sold half of its 50% working interest in the Spyglass Property to a third party for cash consideration, net of finder’s fees, totaling $3,823,963. As of December 31, 2011, $46,170 of the net proceeds was still receivable. At the time of the sale, the Spyglass Prospect represented the only prospect included in the portion of the Company’s full-cost pool that was not subject to amortization. After reducing the carrying value of the full-cost pool, not subject to amortization to zero, the Company recognized a gain on the sale of $3,072,377. Because proved reserves were later established, subsequent costs associated with the Company interest in the Spyglass Prospect have been assigned to the full-cost pool that is subject to amortization.

Also in May 2011, the Company sold half of its 10% working interest in certain acreage included in the Pebble Beach Property to the same third-party for cash consideration, net of finder’s fees, totaling $227,079. Because the sale of the Pebble Beach working interest did not represent a significant portion of the full-cost pool that is subject to amortization, the net proceeds received were recorded as a reduction of the amortizable full-cost pool.

In December 2011, the Company sold three-quarters of its 50% working interest in the
West Spyglass Prospect to a third party for cash consideration totaling $5,456,548. At the time of the sale, the West Spyglass Prospect represented the only prospect included in the portion of the Company’s full-cost pool that was not subject to amortization. After again reducing the carrying value of the full-cost pool, not subject to amortization, to zero, the Company recognized a gain on the sale of $3,332,737.

Also in December 2011, the Company sold half of its 10% working interest in certain other acreage included in the Pebble Beach Property to the same third-party for cash consideration totaling $1,889,674. The full amount of the consideration was included in the Company’s receivable balance as of December 31, 2011 and collected in January 2012. Because the sale of the Pebble Beach working interest did not represent a significant portion of the full-cost pool that is subject to amortization, the sales proceeds to be received were recorded as a reduction of the amortizable full-cost pool.

F-20

American Eagle Energy Corporation

Notes to the Consolidated Financial Statements

As of December 31, 2011 and 2010 and

For Each of the Two Years in the Period Ended December 31, 2011

6. Equipment and Leasehold Improvements

The following is a summary of equipment and improvements, at cost, December 31, 2011 and December 31, 2010:

	December 31,			December 31,
	2011			2010
Office equipment	$	129,057		$	122,325
Leasehold improvements		47,510			47,510
Total equipment and improvements		176,567			169,835
Less: accumulated depreciation and amortization		(156,744	)		(149,142	)
Equipment and improvements, net	$	19,823		$	20,693

Depreciation and amortization expense for the years ended December 31, 2011 and 2010 was $7,602 and $48,934, respectively.

During 2008 and 2009, the Company purchased an aggregate of $57,000 of down-hole tools. Because the Company no longer possessed exclusive rights to utilize the down-hole gas and water separation technology and had no plans to utilize the tools in the foreseeable future, the tools were classified as assets held for sale and were considered to be fully impaired as of December 31, 2010 and December 31, 2011. The Company recognized impairment expense relating to the down-hole gas and water separation tools totaling $57,000 during the year ended December 31, 2010.

7. Oil and Gas Properties

As of December 31, 2011 and December 31, 2010, net costs included in the Company’s full-cost pool cost centers are as follows:

	December 31, 2011				December 31, 2010
	Amortizable		Non-Amortizable		Amortizable		Non-Amortizable
United States	$	6,816,654	$	7,295,215	$	-	$	590,368
Canada		8,981,653		-		340,321		-
Total	$	15,798,307	$	7,295,215	$	340,321	$	590,368

F-21

American Eagle Energy Corporation

Notes to the Consolidated Financial Statements

As of December 31, 2011 and 2010 and

For Each of the Two Years in the Period Ended December 31, 2011

Hardy Property

As discussed in Note 5, in April 2010, the Company acquired a 100% working interest in approximately 4,480 net acres located in Saskatchewan, Canada in connection with the sale of certain gross overriding royalty interest to Ryland. The Hardy Property contained one existing well with equipment valued at approximately $238,681 at the time of the purchase. Shortly after the acquisition, the Company sold 50% of its working interest in the Hardy Property to AEE Inc. and received a 50% working interest in the Spyglass Prospect. As a result, the Company reclassified 50% of the Company’s carrying value of the Hardy Property at the time of the sale to the newly acquired Spyglass Prospect.

In August 2010, the Company, along with AEE Inc., its working interest partner at the time, performed a workover and recompletion of the Hardy 7-9 well at an aggregate cost of $475,274. The Company’s portion of the recompletion cost was $237,637. The Hardy 7-9 well was returned to production in September 2010.

On May 2, 2011, the Company entered into a participation agreement with Passport Energy Ltd. (“Passport”), pursuant to which Passport agreed to participate in, and fund 38.5% of the drilling costs of, up to two new wells within the Hardy Property in exchange for a 25% working interest in the wells. Eternal Energy and AEE Inc. each agreed to fund 30.75% of the drilling cost of the two new wells and retain a 37.5% working interest in the new wells.

In May 2011, the Company, along with its then working interest partners, AEE Inc. and Passport, successfully drilled and completed the “Hardy 4-16” well, an offset well located within the Hardy Property. The well was fracture stimulated in July 2011 and placed on production during September 2011.

In December 2011, the Company and Passport modified the terms of their existing participation agreement and commenced drilling of the Hardy 14-17 well. Pursuant to the modified participation agreement, the Company and AEE Inc. each agreed to fund 38.45% of the initial drilling and completion costs of the Hardy 14-17 well, with Passport funding the remaining 23.1% of the drilling and completion costs. Upon completion of the well, the Company will own a consolidated 85% working interest in the well, with Passport retaining a 15% working interest.

As of December 31, 2011, the Company owns a 50% working interest in approximately 4,300 net acres held by 6 leases, each of which is scheduled to expire on April 1, 2014.

The Company recognized depletion expense totaling $89,185 and $104,350 for the years ended December 31, 2011 and 2010, respectively, relative to the Hardy Property.

F-22

American Eagle Energy Corporation

Notes to the Consolidated Financial Statements

As of December 31, 2011 and 2010 and

For Each of the Two Years in the Period Ended December 31, 2011

Spyglass Property

For reporting purposes, the Spyglass Property has been redefined to include the historical Spyglass acreage, as well as certain acreage formerly referred to as the Pebble Beach Property.

In 2006, the Company entered into a series of agreements that resulted in the acquisition of a ten percent working interest in a joint venture with Rover. The joint venture was formed to explore and develop certain prospects principally located in Divide County, North Dakota.

As noted in Note 5, the Company sold its working interest in approximately 700 net acres located within the Pebble Beach Property to Rover in April 2010 for cash consideration totaling $1 million. At that time, the sale represented a significant reduction of the full-cost pool that is not subject to amortization. Accordingly, the Company reallocated the costs of the total pool among the properties included within the pool based on relative fair market value at the time of the sale. The Company recognized a $509,934 gain on the sale of the Pebble Beach acreage during the year ended December 31, 2010.

In June 2010, the Company sold half of its 100% working interest in the Hardy Property to AEE Inc. in exchange for a 50% working interest in approximately 6,239 net acres located within Divide County, North Dakota. The Company reclassified 50% of the then-carrying value of its investment in the Hardy Property ($126,029) to the Spyglass Property at the time of the sale. Between June 30, 2010 and May 27, 2011, the Company acquired a 50% working interest in an additional 2,486 net acres at an aggregate cost of $625,557.

Exploratory drilling within the Spyglass Property commenced during the fourth quarter of 2010. During the year ended December 31, 2011, economically recoverable proved reserves were identified within the Spyglass Property. As a result, the Company reassigned its investment in the Spyglass Property to the full-cost pool, subject to amortization.

In May 2011, the Company sold a portion of the acreage that it had previously acquired from Rover for net cash consideration totaling $227,079. Because the sale did not represent the disposal of a significant portion of non-amortizable full-cost pool at the time of the sale, the net proceeds received were recorded as a reduction of the full-cost pool, not subject to amortization.

Also in May 27, 2011, the Company and AEE Inc. each sold a 25% working interest in the Spyglass Property to a third party for cash consideration, net of finder’s fees, totaling $3,823,963 each to the Company and to AEE Inc. After reducing the carrying value of the Company’s full-cost pool, subject to amortization, to zero, the Company recognized a gain in the amount of $3,072,377.

F-23

American Eagle Energy Corporation

Notes to the Consolidated Financial Statements

As of December 31, 2011 and 2010 and

For Each of the Two Years in the Period Ended December 31, 2011

In December 2011, the Company sold an additional portion of the property that it had acquired from Rover for net cash consideration totaling $1,889,973. Because the sale did not represent the disposal of a significant portion of amortizable full-cost pool at the time of the sale, the net proceeds received were recorded as a reduction of the full-cost pool, subject to amortization. The net proceeds from the sale were received in January 2012 and are included in the Company’s receivables balance as of December 31, 2011.

As of December 31, 2011, the Company owns a consolidated 50% working interest in approximately 11,521 net acres within the Spyglass Property, which is held by approximately 438 leases, with expiration dates ranging from August 2012 to February 2017.

Benrude Property

As of December 31, 2011, the Company owns a 100% working interest in approximately 743 net acres located in Roosevelt County, Montana. The acreage is held by 32 leases, with expiration dates ranging from December 2012 to July 2015. The Company is planning to conduct a 3-D seismic study of the Benrude Property during 2012, the results of which will be used to determine the Company’s strategy for pursuing the proved reserves assigned to the Benrude Property.

The net capitalized cost of the Company’s oil and gas properties, subject to amortization, as of December 31, 2011 and December 31, 2010 is summarized below:

	US			Canadian
	Cost Center			Cost Center			Total
December 31, 2011:
Acquisition costs	$	7,790,861		$	7,013,781		$	9,550,085
Exploration costs		242,955			-			-
Development costs		3,251,992			2,152,553			8,234,867
Impairments and sales		(4,469,154	)		(1,443	)		(1,803,407	)
		6,816,654			9,164,891			15,981,545
Accumulated depletion		-			(183,238	)		(183,238	)
Totals	$	6,816,654		$	8,981,653		$	15,798,307
December 31, 2010:
Acquisition costs	$	-		$	135,217		$	135,217
Exploration Costs		-			-			-
Development costs		-			310,897			310,897
Development costs		-			(1,443	)		(1,443	)
		-			444,671			444,671
Accumulated depletion		-			(104,350	)		(104,350	)
Totals	$	-		$	340,321		$	340,321

F-24

American Eagle Energy Corporation

Notes to the Consolidated Financial Statements

As of December 31, 2011 and 2010 and

For Each of the Two Years in the Period Ended December 31, 2011

Exploratory Prospects

As of December 31, 2011, the Company has entered into participation agreements in a number of exploratory oil and gas prospects, all which are located within the continental United States. Unproven exploratory prospects are excluded from the amortizable cost pools. Each prospect’s costs are transferred into the amortization base on an ongoing basis as the prospect is evaluated and proved reserves are established or impairment is determined. The Company paid certain amounts upon execution of the agreements and is obligated to share in the drilling costs of certain exploratory wells being drilled in the prospects. The capitalized costs of the exploratory prospects are not subject to amortization because, to date, no proved reserves have been assigned to the individual prospects. The nature of the capitalized costs of the unproven prospects is as follows:

							Aggregate
	December 31,						Through
	2011			2010			2009			Total
Acquisition costs	$	9,442,209		$	386,687		$	1,976,054		$	11,804,950
Exploration costs		520,967			69,285			136,918			727,170
Reclassifications to the amortizable pool		(758,723	)		-			-			(758,723	)
Impairments and sales		(2,499,605	)		(277,355	)		(1,701,222	)		(4,478,182	)
Total capitalized costs of exploratory prospects	$	6,704,848		$	178,617		$	411,750		$	7,295,215

Glacier Prospect

As a result of its acquisition of AEE Inc., the Company owns an undivided 33% working interest in approximately 25,000 net acres located in Toole County, Montana. The acreage is held by approximately 400 leases, with expiration dates ranging from May 2012 to June 2015.

Because no proved reserves have yet been identified, the Glacier Prospect has been assigned to the full-cost pool that is not subject to amortization. Management is currently in the process of developing its exploration strategy relative to the Glacier Prospect. The Company is evaluating the results of nearby wells drilled by other companies in order to make a determination on the future of the Glacier Prospect. The Glacier Prospect is evaluated for impairment during each reporting period. There were no impairments evident as of December 31, 2011.

F-25

American Eagle Energy Corporation

Notes to the Consolidated Financial Statements

As of December 31, 2011 and 2010 and

For Each of the Two Years in the Period Ended December 31, 2011

Sidney North Prospect

As a result of its acquisition of AEE Inc., the Company owns a 100% working interest in oil and gas leases on approximately 399 net acres located in Richland County, Montana (the “Sidney North Prospect”). The acreage is held by approximately 14 leases, with expiration dates ranging from July 2013 to October 2015. The Company’s management is currently evaluating this prospect. No formal determination of the ultimate viability of this prospect is expected during the next twelve months. Management has reviewed the carrying value of this property and determined that no impairment exists as of December 31, 2011.

West Spyglass Prospect

In June, 2011, the Company began acquiring interests in oil and gas leases located in an area adjacent to the existing Spyglass Prospect. The Company’s management refers to the adjacent acreage as the West Spyglass Prospect.

The Company sold 75% of its then-working interest in the West Spyglass Prospect to a third party during December 2011. The Company received cash consideration totaling $5,456,548 from the sale. At the time of the sale, the West Spyglass Prospect represented the only prospect included in the portion of the Company’s full-cost pool that was not subject to amortization. After again reducing the carrying value of the full-cost pool, not subject to amortization to zero, the Company recognized a gain on the sale of $3,332,737.

The Company acquired an additional 12.5% working interest in the West Spyglass Prospect as a result of its acquisition of AEE Inc. As of December 31, 2011, the Company owns a 25% working interest in approximately 10,593 net acres located within the West Spyglass Prospect. The net acres are held by 283 leases, with expiration dates ranging from April 2012 to February 2017. The Company’s management is currently evaluating this prospect. No formal determination of the ultimate viability of this prospect is expected during the next twelve months. Management has reviewed the carrying value of this property and determined that no impairment exists as of December 31, 2011.

Exploratory Prospect Cost Summary

The following table summarizes the costs of the Company’s aggregate exploratory activities for all unproven prospects for the year ended December 31, 2011 and the year ended December 31, 2010:

	December 31,			December 31,
	2011			2010
Balance at the beginning of the period	$	590,368		$	412,797
Additions to exploratory costs		11,407,645			455,972
Disposals		(2,499,605	)		(278,401	)
Reassignments to the amortizable pool		(2,203,193	)		-
Balance at the end of the period	$	7,295,215		$	590,368

F-26

American Eagle Energy Corporation

Notes to the Consolidated Financial Statements

As of December 31, 2011 and 2010 and

For Each of the Two Years in the Period Ended December 31, 2011

8. Asset Retirement Obligations

As discussed in Note 5, the Company sold its interest in the West Ranch Property in June 2010. Pursuant to the terms of the sale agreement, the purchaser assumed all future plugging, abandonment and environmental reclamation liabilities associated with the West Ranch wells. Accordingly, the Company removed the asset retirement obligation associated with the West Ranch Property from its books and considered the extinguishment of this debt in calculating the gross gain realized on the sale.

The Company has recorded estimated asset retirement obligations for the future plugging and abandonment of wells within the Hardy Property. As of December 31, 2011 and 2010, the consolidated discounted value of the Hardy Property asset retirement obligations was $34,628 and 13,853, respectively.

The Company recognized accretion expense of $1,548 for the year ended December 31, 2011 and 2010 associated with the Hardy Property asset retirement obligations. No such amortization was recorded during 2010 as the asset retirement obligations were initially recorded on December 31, 2010. The projected plugging dates for the Hardy 7-9 and Hardy 4-16 wells are December 2020 and June 2036, respectively.

9. Income Taxes

The Company recognized income tax expense of $99,291 and $892,112 for the years ended December 31, 2011 and December 31, 2010, respectively. Income tax expense for the years ended December 31, 2011 and 2010 consisted of the following:

	2011			2010
Current income tax expense:
Domestic	$	485,137		$	-
Foreign		-			892,112
Total current income tax expense		485,137			892,112
Deferred income tax expense (benefit):
Domestic		(523,627	)		-
Foreign		137,781			-
Total deferred income tax expense (benefit)		(385,846	)		-
Total income tax expense	$	99,291		$	892,112

In June 2010, the Company remitted $892,112 to the Canadian Revenue Agency in connection with the sale of certain gross overriding royalty interests. Due to uncertainties related to the Company’s future ability to utilize the foreign tax credit created by the payment of these taxes, the Company included this item as a part of the net operating loss deduction in calculating its 2011 estimated income tax provision.

F-27

American Eagle Energy Corporation

Notes to the Consolidated Financial Statements

As of December 31, 2011 and 2010 and

For Each of the Two Years in the Period Ended December 31, 2011

Significant components of the Company’s deferred income tax assets and liabilities at December 31, 2011 and 2010 are as follows:

	2011		2010
Deferred tax assets:
Foreign tax credits	$	-	$	892,112
Net operating losses – domestic		-		907,864
Net operating losses – foreign		137,781		-
Stock options		464,428		-
Total deferred tax assets		602,209		1,799,976
Valuation allowance		-		(1,799,976	)
Net deferred income tax assets	$	602,209	$	-
Deferred tax liabilities:
Deferred gain	$	591,100		-
Domestic fixed assets		3,061,917		-
Foreign fixed assets		1,401,132		-
Net fixed assets		4,463,049		-
Marketable securities		100,924		-
Deferred tax liabilities	$	5,155,073	$	-
Net deferred tax liabilities	$	4,552,864	$	-

Prior to recognizing income for the year ended December 31, 2010, the Company recognized net losses in each fiscal year since inception. Based on the Company’s history of net losses, management believed that it was more likely than not that the net deferred tax assets would not be fully realizable. Accordingly, the Company recorded a full valuation allowance against its deferred tax assets as of December 31, 2010. The Company fully exhausted its net operating loss carryforwards during the year ended December 31, 2011.

F-28

American Eagle Energy Corporation

Notes to the Consolidated Financial Statements

As of December 31, 2011 and 2010 and

For Each of the Two Years in the Period Ended December 31, 2011

A reconciliation between the amount of income tax expense for the years ended December 31, 2011 and 2010, determined by applying the appropriate applicable statutory income tax rates, is as follows:

	2011			2010
U.S. Statutory tax expense	$	1,620,602		$	1,344,093
State income taxes, net of federal benefit		89,071			70,573
Foreign taxes paid		-			892,112
Permanent differences		3,054			937
Change in valuation allowance		(1,799,976	)		(1,415,603	)
True-up of prior year amounts		324,321			-
Foreign operations		(137,781	)		-
Net income tax expense	$	99,291		$	892,112
Effective tax rate		2.18	%		23.62	%

10. Commitments and Contingencies

Drilling Obligations

The Company has the option to participate in the drilling of future exploratory wells related to its working interest in the Spyglass Property, should any such wells be proposed by the other working interest owners. As of December 31, 2011, the Company has elected to participate in 28 wells located within the Spyglass Property. As such, the Company is currently obligated to fund its non-operating working interest portion of the drilling and future operations costs of these wells. The Company’s working interests in the Spyglass wells range from 0.03% to 35.49%. Additional wells could be proposed in the future, at which time the Company may or may not elect to participate in such additional wells.

The Company intends to drill and operate a series of horizontal and/or vertical wells to be located within the Spyglass Property and has contracted for the use of a drilling rig for the foreseeable future. The Company is obligated to pay all costs related to the use of the drilling rig in connection with the drilling of four wells, one of which is currently being completed, one that is currently being drilled and two wells that are waiting to be drilled.

Employment Agreement

Effective July 1, 2011, the Company amended and restated the existing employment agreement with its President and Chief Executive Officer to extend the term of the agreement through June 30, 2014. The amended and restated agreement increased the amount of annual compensation from $174,000 to $204,000. The remaining terms of the original agreement remain substantially the same.

F-29

American Eagle Energy Corporation

Notes to the Consolidated Financial Statements

As of December 31, 2011 and 2010 and

For Each of the Two Years in the Period Ended December 31, 2011

Lease Obligation

The Company currently leases office space pursuant to the terms of a three-year lease agreement. The original lease agreement was scheduled to expire on December 31, 2011. In September 2011, the Company amended the original lease agreement and extended the term of the lease through December 31, 2014. Future lease payments related to the Company’s office and equipment leases as of December 31, 2011 are as follows:

	Amount
2012	$	60,933
2013		64,140
2014		67,347
2015		-
2016		-
Total	$	192,420

Rent expense for the years ended December 31, 2011 and 2010 totaled $75,735 and $77,674, respectively.

11. Earnings Per Share

The following is a reconciliation of the number of shares used in the calculation of basic and diluted earnings per share for the years ended December 31, 2011 and 2010:

	2011		2010
Net income	$	4,453,901	$	2,884,491
Weighted average number of common shares outstanding		9,143,099		9,436,340
Incremental shares from the assumed exercise of dilutive stock options		3,018,373		297,816
Diluted common shares outstanding		12,161,472		9,734,156
Earnings per share - basic	$	0.49	$	0.31
Earnings per share - diluted	$	0.37	$	0.30

F-30

American Eagle Energy Corporation

Notes to the Consolidated Financial Statements

As of December 31, 2011 and 2010 and

For Each of the Two Years in the Period Ended December 31, 2011

12. Equity Transactions

Shares Issued in Connection with the AEE Inc. Merger

As discussed in Note 3, on December 20, 2011, the Company issued 36,476,543 shares of its common stock to legacy AEE Inc. stockholders in order to acquire 100% of the then-outstanding shares of AEE Inc. Because the common stock of both companies is very thinly traded, the Company estimated the fair market value of the shares issued based on an independent valuation. The estimated value of stock that was issued to acquire AEE Inc. was $16,722,975.

Reverse Stock Split

Immediately subsequent to the acquisition of AEE Inc., the Company declared a 1.0-for-4.5 reverse stock split. All historical share and per share information presented below has been restated and presented on a post-reverse-split basis.

Stock Repurchases

In March 2010, the Company’s Board of Directors authorized implementation of a stock repurchase program, pursuant to which the Company was authorized to repurchase up to $500,000 of its then-outstanding common shares at prevailing market prices. During the duration of the program, the Company repurchased and retired 1,015,556 shares of its previously issued and outstanding common stock at an aggregate cost of $328,547 (average repurchase price of $0.32 per share). The Company discontinued the share repurchase program effective November 1, 2010.

Stock Options

During December 2010, 512,889 stock options were exercised by former members of the Company’s management. The transactions were completed as net exercises, resulting in the issuance of 227,961 shares of the Company’s common stock.

In December 2011, the Company granted 975,000 options to purchase shares of the Company’s common stock to certain employees and contractors. The options have a five-year life, are exercisable at a price of $1.18 per share and vest over a two-year period. The Company recognized stock-based compensation expense of $30,614 for the year ended December 31, 2011. No stock-based compensation expense was recognized for the year ended December 31, 2010 as all options outstanding during the year fully vested prior to the January 1, 2010.

F-31

American Eagle Energy Corporation

Notes to the Consolidated Financial Statements

As of December 31, 2011 and 2010 and

For Each of the Two Years in the Period Ended December 31, 2011

The stock options granted in December 2011 were valued using the Black-Scholes option pricing model and had a fair market value of $1,325,414 at the time of grant. The assumptions used in the Black-Scholes option pricing model for the stock options granted in December 2011 were as follows:

Risk-free interest rate		0.28	%
Expected volatility of common stock		101	%
Dividend yield	$	0.00
Expected life of options		5 years
Weighted average fair market value of options granted	$	0.79

A summary of stock option activity for the years ended December 31, 2011 and December 31, 2010 is presented below:

						Weighted
				Weighted		Average
				Average		Remaining
				Exercise		Contract
	Options			Price		Term
Outstanding at December 31, 2009		1,333,333		$	0.23		4.8 years
Options granted		-			-		-
Options exercised		(512,889	)		-		-
Options expired		-			-		-
Options forfeited		-			-		-
Outstanding at December 31, 2010		820,444		$	0.23		3.8 years
Options granted		975,000			1.18		5.0 years
Options exercised		-			-		-
Options expired		-			-		-
Options forfeited		-			-		-
Outstanding at December 31, 2011		1,795,444		$	0.74		4.0 years
Exercisable at December 31, 2011		820,444		$	0.23		2.8 years

The options outstanding as of December 31, 2011 and December 31, 2010 have an intrinsic value of $0.56 and $0.23 per share and an aggregate intrinsic value of $1,005,449 and $184,600, respectively.

Shares Reserved for Future Issuance

As of December 31, 2011 and December 31, 2010, the Company had reserved 1,795,444 and 820,444 shares, respectively, for future issuance upon exercise of outstanding options.

F-32

American Eagle Energy Corporation

Notes to the Consolidated Financial Statements

As of December 31, 2011 and 2010 and

For Each of the Two Years in the Period Ended December 31, 2011

13. Related Party Transactions

In June 2010, the Company purchased 500,000 shares of common stock, with attached warrants, of Passport, an entity related by virtue of a common director. The aggregate cost of stock and warrants was $24,733. Each share of common stock purchased included a warrant that enables the Company to purchase an additional share of common stock at a price of $0.05 per share. As a result of its acquisition of AEE Inc., the Company acquired an additional 500,000 shares of Passport’s common stock with attached warrants. As of December 31, 2011 and December 31, 2010, the fair market value of the Company’s investment in Passport was $146,713 and $197,453, respectively.

Passport is a working interest partner with the Company in the Hardy 4-16 and Hardy 14-17 wells. As of December 31, 2011, the Company has a receivable from Passport in the amount of $314,521.

The Company routinely obtains legal services from a firm for whom one of its directors serves as a principal. Fees paid this firm totaled $16,585 and $ 25,231 for the years ended December 31, 2011 and 2010, respectively.

Historically, the Company has not typically compensated its directors. However, during the year ended December 31, 2011, the Company paid $11,786 to one of its directors for additional services provided in connection with the contemplated acquisition of AEE Inc.

Prior to its acquisition by the Company, AEE Inc. entered into an agreement with Synergy Energy Resources LLC (“Synergy”) for it to provide monthly geological consulting services to AEE Inc. One of the Company’s current directors and one current officer own material ownership interests in Synergy. The Company purchased $7,000 of consulting fees from Synergy during the period from December 20, 2011, the date of acquisition, through December 31, 2011. In addition, a $20,000 performance bonus was paid to an employee of Synergy related to services rendered in connection with the acquisition of AEE Inc.

14. Subsequent Events

In January 2012, the Company entered into a new, three-year employment agreement with its President and two-year employment agreements with its Chief Operating Officer and its Chief Financial Officer. In addition to employment benefits commensurate with their positions, the President, Chief Operating Officer and Chief Financial Officer will receive annual compensation totaling $204,000, $204,000 and $150,000, respectively. The employment agreements contain certain buy-out provisions should the Company experience a change of control prior to the expiration of their respective terms.

F-33

American Eagle Energy Corporation

Notes to the Consolidated Financial Statements

As of December 31, 2011 and 2010 and

For Each of the Two Years in the Period Ended December 31, 2011

In January 2012, the Company collected proceeds from the partial sale of its interest in certain Pebble Beach acreage totaling $1,889,674. The proceeds were included in the Company’s receivable balance as of December 31, 2011.

In January 2012, the Company sold 100,000 shares of its common stock to a new director. Proceeds from the sale totaled $110,000.

15. Supplemental Oil and Gas Information (Unaudited)

During the years ended December 31, 2011 and 2010, the Company capitalized the following costs associated with the acquisition, exploration and development of oil and gas properties:

	2011		2010
Acquisition costs	$	2,649,493		177,570
Exploration costs		-		-
Development costs		4,502,832		444,671
Total costs	$	7,152,325	$	622,241

F-34

American Eagle Energy Corporation

Notes to the Consolidated Financial Statements

As of December 31, 2011 and 2010 and

For Each of the Two Years in the Period Ended December 31, 2011

The Company recognized the following revenues and expenses associated with its oil and gas producing activities for the years ended December 31, 2011 and 2010:

	2011			2010
Oil revenues	$	864,918		$	207,788
Operating expenses		537,122			145,961
Net oil and gas revenues	$	327,796		$	61,827
Oil revenues by cost center:
United States	$	402,436		$	74,485
Canada		462,482			133,303
Total oil revenue	$	864,918		$	207,788
Oil production by cost center (barrels):
United States		5,535			1,414
Canada		5,802			2,001
Total oil production		11,337			3,415
Average oil prices by cost center (net of royalty interest):
United States	$	72.71		$	52.67
Canada		79.71			66.63
Oil production costs by cost center:
United States	$	23,264		$	7,487
Canada		513,858			138,474
Total oil production costs	$	537,122		$	145,961
Oil production costs per unit:
United States	$	4.20		$	5.29
Canada		88.57			69.22
Depletion expense by cost center:
United States	$	-		$	-
Canada		89,185			104,350
Total depletion expense	$	89,185		$	104,350
Income tax expense by cost center:
United States	$	8,266		$	31,486
Canada		(1,120	)		(1,221	)
Total income tax expense	$	7,146		$	30,265
Net operating results from oil and gas activities:
United States	$	370,906		$	35,512
Canada		(139,441	)		(108,300	)
Total net operating results from oil and gas activities	$	231,465		$	(72,788	)

The following tables set forth the Company’s net interests in quantities of proved developed and undeveloped reserves of crude oil, condensate and natural gas and changes in such quantities from the prior period. Crude oil reserves estimates include condensate.

The reserve estimation process involves reservoir engineers, geoscientists, planning engineers and financial analysts. As part of this process, all reserves volumes are estimated by a forecast of production rates, operating costs and capital expenditures. . Estimated future cash flows were computed by applying an average of the monthly oil prices for the year to the Company’s share of estimated annual future production from proved oil and gas reserves, net of royalties. Production rate forecasts are derived by a number of methods, including estimates from decline curve analyses, material balance calculations that take into account the volume of substances replacing the volumes produced and associated reservoir pressure changes, or computer simulation of the reservoir performance. Operating costs and capital costs are forecast based on past experience combined with expectations of future cost for the specific reservoirs. In many cases, activity-based cost models for a reservoir are utilized to project operating costs as production rates and the number of wells for production and injection vary.

F-35

American Eagle Energy Corporation

Notes to the Consolidated Financial Statements

As of December 31, 2011 and 2010 and

For Each of the Two Years in the Period Ended December 31, 2011

The Company has retained an independent petroleum engineering firm to determine its annual estimate of oil and gas reserves as of December 31, 2011 and 2010. The independent petroleum engineering firm estimated the oil and gas reserves associated with the Company’s Hardy, Spyglass and Benrude Properties using generally accepted industry standards, which include the review of technical data, methods and procedures used in estimating reserves volumes, the economic evaluations and reserves classifications.

The Company believes that the methodologies used by the independent petroleum engineering firm in preparing the relevant estimates comply with current Securities and Exchange Commission standards for preparing such estimates. The Company has implemented internal controls regarding the development of reasonable oil and gas reserves estimates. These controls include, among other things, a thorough review of the estimated future development costs and estimated production costs associated with the reserves and a comparison of such estimated future costs to actual development and production costs incurred during the current period. In addition, the Company’s operational team compares the average prices used to estimate discounted net future cash flows from proved reserves to actual prices received during the period for reasonableness. The internal control procedures described above were performed by the Company’s operational team, which includes petroleum engineers having in excess of 71years of oil and gas exploration and production experience, collectively. Based on the performance of these internal controls, the Company’s management believes that the underlying data provided by the Company to the independent petroleum engineering firm for the purpose of preparing its estimates, is reasonable Furthermore, the estimated reserves as of December 31, 2011 and 2010, as described in the final report issued by the independent petroleum engineering firm, were reviewed by members of the Company’s operational management and determined to be reasonable based on the underlying data.

F-36

American Eagle Energy Corporation

Notes to the Consolidated Financial Statements

As of December 31, 2011 and 2010 and

For Each of the Two Years in the Period Ended December 31, 2011

The following tables summarize the Company’s proved oil and gas reserves, annual production and other changes in the Company’s proved oil and gas reserves for the years ended December 31, 2011 and 2010:

	Oil			Gas		Total
	(Barrels)			(Mcf)		(Boe)
For the year ended December 31, 2011:
Proved reserves, beginning of year		198,825			-		198,825
Revisions		50,484			-		50,484
Discoveries		430,920			-		430,920
Purchases of reserves in place		842,346			416,900		911,829
Production		(11,337	)		-		(11,337	)
Proved reserves, end of year		1,511,238			416,900		1,580,721
Proved reserves by cost center:
United States		909,067			416,900		978,550
Canada		602,171			-		602,171
Total proved reserves		1,511,238			416,900		1,580,721
Proved developed reserves		274,188			59,892		284,170
Proved undeveloped reserves		1,237,050			357,008		1,296,551
Total proved reserves		1,511,238			416,900		1,580,721
Proved developed reserves by cost center:
United States		102,937			59,892		112,919
Canada		171,251			-		171,251
Total proved developed reserves		274,188			59,892		284,170
Proved undeveloped reserves, beginning of year		152,348			-		152,348
Conversion to developed reserves		(152,348	)		-		(152,348	)
Revisions		-			-
Discoveries		430,920			-		430,920
Purchases of reserves in place		806,130			357,008		865,631
Proved undeveloped reserves, end of year		1,237,050			357,008		1,296,551
Proved undeveloped reserves by cost center:
United States		806,130			357,008		865,631
Canada		430,920			-		430,920
Total proved undeveloped reserves		1,237,050			357,008		1,296,551

F-37

American Eagle Energy Corporation

Notes to the Consolidated Financial Statements

As of December 31, 2011 and 2010 and

For Each of the Two Years in the Period Ended December 31, 2011

As a result of drilling the Hardy 4-16 well in September 2011, the Company converted 152,348 barrels of oil from proved undeveloped reserves to proved developed reserves. The Company incurred $1,187,598 of capitalized expenditures to drill Hardy 4-16 well.

	Oil			Gas		Total
	(Barrels)			(Mcf)		(Boe)
For the year ended December 31, 2010:
Proved reserves, beginning of year		-			-		-
Revisions		-			-		-
Discoveries		-			-		-
Purchases of reserves in place		200,826			-		200,826
Production		(2,001	)		-		(2,001	)
Balance, end of year		198,825			-		198,825
Proved reserves by cost center:
United States		-			-		-
Canada		198,825			-		198,825
Total proved reserves		198,825			-		198,825
Proved developed reserves		46,477			-		46,477
Proved undeveloped reserves		152,348			-		152,348
Total proved reserves		198,825			-		198,825

	Oil		Gas		Total
	(Barrels)		(Mcf)		(Boe)
Proved developed reserves by cost center:
United States		-		-		-
Canada		46,477		-		46,477
Total proved developed reserves		46,477		-		46,477
Proved undeveloped reserves, beginning of year		-		-		-
Revisions		-		-		-
Discoveries		-		-		-
Purchases of reserves in place		152,348		-		152,348
Proved undeveloped reserves, end of year		152,348		-		152,348
Proved undeveloped reserves by cost center:
United States		-		-		-
Canada		152,348		-		152,348
Total proved undeveloped reserves		152,348		-		152,348

Standardized Measure, Including Year-to-Year Changes Therein, of Discounted Future Net Cash Flows

For purposes of the following disclosures, estimates were made of quantities of proved reserves and the periods during which they are expected to be produced. Estimated future cash flows were computed by applying a 12-month average of oil prices, except in those instances where future oil or natural gas sales are covered by physical contract terms providing for higher or lower prices, to the Company’s share of estimated annual future production from proved oil and gas reserves, net of royalties. Future development and production costs were computed by applying year-end costs to be incurred in producing and further developing the proved reserves. Future income tax expenses were computed by applying, generally, year-end statutory tax rates (adjusted for permanent differences, tax credits, allowances and foreign income repatriation considerations) to the estimated net future pre-tax cash flows. The discount was computed by application of a 10 % discount factor. The calculations assumed the continuation of existing economic, operating and contractual conditions at December 31, 2011.

F-38

American Eagle Energy Corporation

Notes to the Consolidated Financial Statements

As of December 31, 2011 and 2010 and

For Each of the Two Years in the Period Ended December 31, 2011

Standardized Measure of Discounted Future Net Cash Flows

	At December 31,
	2011			2010
Future cash flows	$	132,047,257		$	5,350,175
Future costs:
Production costs		(28,976,839	)		(1,215,802	)
Development costs		(15,273,800	)		(930,000	)
Income taxes		(31,309,370	)		-
Future net cash flows		56,487,248			3,204,373
Ten percent discount factor		(31,265,211	)		(1,265,320	)
Standardized measure of discounted future net cash flows	$	25,222,037		$	1,939,053

The following table summarizes the changes in the Company’s standardized measure of discounted future net cash flows for the years ended December 31, 2011 and 2010:

	2011			2010
Extensions and discoveries	$	10,865,465		$	-
Net changes in sales prices and production costs		370,076			-
Oil and gas sales, net of production costs		(329,420	)		(133,303	)
Change in estimated future development costs		(710,348	)		-
Revision of quantity estimates		999,954			-
Purchases of mineral interests		17,700,515			2,072,356
Additions of mineral interests due to merger		14,176,308			-
Previously estimated development costs incurred in the current period		1,640,348			-
Changes in production rates, timing and other		(5,455,760	)		-
Changes in income taxes		(16,258,320	)		-
Accretion of discount		287,166			-
Net increase		23,285,984			1,939,053
Standardized measure of discounted future cash flows:
Beginning of year		1,939,053			-
End of year	$	25,225,037		$	1,939,053

F-39

American Eagle Energy Corporation

Notes to the Consolidated Financial Statements

As of December 31, 2011 and 2010 and

For Each of the Two Years in the Period Ended December 31, 2011

Assumed prices used to calculate future cash flows

	At December 31,
	2011		2010
Oil price per barrel	$	86.47	$	76.87
Gas price per mcf	$	3.29	$	N/A

F-40

EX-21.1

Exhibit 21.1

Subsidiaries

EERG Energy, ULC (wholly-owned by American Eagle Energy Corporation)

AMZG, Inc. (wholly-owned by American Eagle Energy Corporation)

AEE Canada Inc. (wholly-owned by AMZG, Inc.)

EX-23.1

CONSENT OF MHA PETROLEUM CONSULTANTS LLC

We hereby consent to the use of our report dated March 15, 2012, including the estimates of the reserves and income attributable to certain oil and gas properties of American Eagle Energy Corporation as of January 1, 2012, in its Annual Report on Form 10-K and any subsequent amendments thereto.

MHA PETROLEUM CONSULTANTS LLC

Leslie S. O’Connor

Managing Partner

Denver, Colorado

June 21, 2012

730 17^th Street, Suite 410 Denver, Colorado  80202-3510  U.S.A. Telephone: 303-277-0270 Fax: 303-277-0276

EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act and Rule 13a-14(a)

or 15d-14(a) under the Securities Exchange Act of 1934

I, Bradley M. Colby, certify that:

1. I have reviewed this Annual Report on Form 10-K/A of American Eagle Energy Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;

4. I am  responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15f) for the Company and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the Company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the Company’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting; and

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the Company’s auditors, audit committee and board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal control over financial reporting.

Date: March 4, 2013	By:	/s/ BRADLEY M. COLBY
		Bradley M. Colby Chief Executive Officer and Treasurer

EX-31.2

Exhibit 31.2 

Certification of Chief Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act and Rule 13a-14(a)

or 15d-14(a) under the Securities Exchange Act of 1934

I, Kirk A. Stingley, certify that:

1. I have reviewed this Annual Report on Form 10-K/A of American Eagle Energy Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;

4. I am  responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15f) for the Company and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the Company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the Company’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting; and

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the Company’s auditors, audit committee and board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal control over financial reporting.

Date: March 4, 2013	By:	/s/ KIRK A. STINGLEY
		Kirk A. Stingley Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification of the Chief Executive Officer

Pursuant to 18 U.S.C. Section 1350

In connection with the filing of the Annual Report on Form 10-K/A for the fiscal year ended December 31, 2011 (the “Report”) by American Eagle Energy Corporation (“Registrant”), the undersigned hereby certifies that, to the best of his knowledge:

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

/s/ BRADLEY M. COLBY

Bradley M. Colby

President, Chief Executive Officer, and Treasurer

Date: March 4, 2013

A signed original of this written statement required by 18 U.S.C. Section 1350 has been provided to American Eagle Energy Corporation and will be retained by American Eagle Energy Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

Certification of the Chief Financial Officer

Pursuant to 18 U.S.C. Section 1350

In connection with the filing of the Annual Report on Form 10-K/A for the fiscal year ended December 31, 2011 (the “Report”) by American Eagle Energy Corporation (“Registrant”), the undersigned hereby certifies that, to the best of his knowledge:

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

/s/ KIRK A. STINGLEY

Kirk A. Stingley

Chief Financial Officer

Date: March 4, 2013

A signed original of this written statement required by 18 U.S.C. Section 1350 has been provided to American Eagle Energy Corporation and will be retained by American Eagle Energy Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

EX-99.1

Estimate of Reserves

and Income Attributable to

Certain Oil and Gas Properties

Located in the

Hardy Bakken Prospect,

Saskatchewan, Canada,

Spyglass Three Forks Area,

Divide County, North Dakota

&

Benrude Prospect, Roosevelt County,
Montana

Effective January 1, 2012

Prepared for

American Eagle Energy Corporation

March 2012

MHA Petroleum Consultants LLC

March 15, 2012   Mr. Tom Lantz American Eagle Energy Corporation 2549 West Main Street, Suite 202

Littleton, CO 80120

Dear Mr. Lantz:

At your request, MHA Petroleum Consultants LLC (MHA) has prepared an estimate of the reserves and income attributable to certain leasehold interests of American Eagle Energy Corporation (AEEC) as of January 1, 2012. This report was prepared as required by Regulation S-X. The properties are located in the Hardy Bakken Area in Saskatchewan Canada, The Spyglass Three Forks Area in Divide County, North Dakota and the Benrude area in Roosevelt County, Montana. The results of this study are summarized below:

American Eagle Energy

Spyglass Area

Estimated Net Reserve and Income Data

SEC Pricing

As of January 1, 2012

Reserves					Income Data
							Direct						Discounted
	Net Remaining						Operating		Equity		Undiscounted		Net Cash
	Reserves Oil Gas				Future Net		Expense		Investment		Net Cash		Flow @ 10%
Category	MBbls		MMcf		Income M$		M$		M$		Flow M$		M$
PDP		90.9		53.7		8,037.0		1,856.8		0.0		6,180.2		3,092.7
PDNP		12.0		6.2		1,061.0		253.1		12.7		795.1		377.1
PUD		639.7		340.4		56,438.1		12,108.5		7,111.1		37,218.6		13,837.8
TOTAL		742.7		400.3		65,536.1		14,218.4		7,123.8		44,193.9		17,307.6

American Eagle Energy

Spyglass Area

Estimated Net Reserve and Income Data

Sproule Pricing

As of January 1, 2012

Reserves					Income Data
							Direct						Discounted
	Net Remaining						Operating		Equity		Undiscounted		Net Cash
	Reserves Oil Gas				Future Net		Expense		Investment		Net Cash		Flow @ 10%
Category	MBbls		MMcf		Income M$		M$		M$		Flow M$		M$
PDP		91.0		53.7		10,732.0		2,698.7		0.0		8,033.3		3,463.5
PDNP		12.0		6.2		1,440.0		374.2		12.7		1,053.2		425.0
PUD		639.7		340.4		76,656.0		17,629.7		7,111.1		51,915.2		16,442.7
TOTAL		742.7		400.3		88,828.0		20,702.6		7,123.8		61,001.7		20,331.3

730 17^th Street, Suite 410 Denver, Colorado 80202-3510 U.S.A. Telephone: 303-277-0270 Fax: 303-277-0267

American Eagle Energy

Hardy Estimated Net Reserve and Income Data

SEC Pricing

As of January 1, 2012

Reserves					Income Data
							Direct						Discounted
	Net Remaining						Operating		Equity		Undiscounted		Net Cash
	Reserves Oil Gas				Future Net		Expense		Investment		Net Cash		Flow @ 10%
Category	MBbls		MMcf		Income M$		M$		M$		Flow M$		M$
PDP		171.3		0.0		14,808.1		3,839.8		0.0		10,968.2		6,317.5
PUD		430.9		0.0		37,261.7		5,374.8		7,200.0		24,686.9		11,902.7
POS		162.8		0.0		14,076.6		2,063.8		0.0		12,012.9		7,403.2
TOTAL		765.0		0.0		66,146.4		11,278.5		7,200.0		47,668.0		25,623.4

American Eagle Energy

Hardy

Estimated Net Reserve and Income Data

Sproule Pricing

As of January 1, 2012

Reserves					Income Data
							Direct						Discounted
	Net Remaining						Operating		Equity		Undiscounted		Net Cash
	Reserves Oil Gas				Future Net		Expense		Investment		Net Cash		Flow @ 10%
Category	MBbls		MMcf		Income M$		M$		M$		Flow M$		M$
PDP		171.7		0.0		18,544.9		5,277.8		0.0		13,267.1		6,923.9
PUD		430.9		0.0		42,578.4		6,319.5		7,200.0		29,058.9		13,596.3
POS		162.8		0.0		15,999.6		2,400.0		0.0		13,599.5		8,064.4
TOTAL		765.5		0.0		77,122.9		13,997.4		7,200.0		55,925.5		28,584.6

American Eagle Energy

Benrude Prospect

Estimated Net Reserve and Income Data

SEC Pricing As of January 1, 2012

Reserves

Income Data

Direct

Discounted

Net Remaining

Operating

Equity

Undiscounted

Net Cash

Reserves Oil Gas

Future Net

Expense

Investment

Net Cash

Flow @ 10%

Category

MBbls

MMcf

Income M$

M$

M$

Flow M$

M$

PUD

166.4

16.6

14,441.4

5,540.8

950.0

7,950.7

3,678.1

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 3

American Eagle Energy

Benrude Prospect

Estimated Net Reserve and Income Data

Sproule Pricing

As of January 1, 2012

Reserves

Income Data

Direct

Discounted

Net Remaining

Operating

Equity

Undiscounted

Net Cash

Reserves Oil Gas

Future Net

Expense

Investment

Net Cash

Flow @ 10%

Category

MBbls

MMcf

Income M$

M$

M$

Flow M$

M$

PUD

166.0

16.6

17,231.5

6,686.4

950.0

9,595.1

4,174.1

Wells included in this reserve report contain all wells in which the Company has a working or revenue interest as of 12/31/11 and has elected to participate in; MHA is not aware of any existing regulations that would affect American Eagle Energy’s ability to recover the estimated reserves discussed in this report.

The future net revenue was based on net hydrocarbon volume sold multiplied by anticipated price. Expenses include severance and ad valorem taxes, and the normal cost of operating the wells. Future net cash flow is future net revenue minus expenses and any development costs. The future net cash flow has not been adjusted for outstanding loans, which may exist, nor does it include any adjustments for cash on hand or undistributed income. No attempt has been made to quantify or otherwise account for any accumulated gas production imbalances that may exist.

Reserve Estimates

Reserves were assigned on the basis of the U.S. Securities Exchange Commission definitions included with this letter. These definitions are generally accepted as standard in the U.S. oil and gas industry, and this report follows these guidelines for categorizing reserves.

In general, the reserves in this report were estimated using production performance analysis. Other methods such as material balance, volumetrics, and offset well analogy were used in certain cases where the data indicated such methods were more appropriate.

There are currently two producing wells in the Hardy Area with an additional three proved undeveloped locations and one possible location (Figure 1). The two producing wells had reserves assigned using prior production history and decline curve analysis. The remainder of the locations utilized a type curve derived from Bakken producers in the area (Figure 2).

In the Spyglass area, AEEC has an interest in 10 producing wells, one non-producing well, and 17 assigned proved undeveloped locations (Figure 3). Again, reserves for the producing wells were assigned using decline curve analysis. Non-producing and undeveloped locations utilized two type curves derived from offset producing wells in two areas; Township 163 N – Range 99 W, and Township 163 N – Range 100W (Figures 4 and 5 respectively).

The Benrude Prospect area will target the Nisku formation. MHA has assigned one proved undeveloped location that is up structure from a well that produced 269,000 barrels of oil (Figure 6). A 3-D seismic survey is to be taken in April 2012 with anticipated drilling in August. Reserves were based upon analogous Nisku production in the surrounding area (Figure 7).

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 4

Economics were run on all wells and locations using two different pricing scenarios; 1) the monthly average price for the year as required by the SEC, and 2) Sproule forecast pricing as of December 31, 2011. Other economic input parameters for the Hardy and Spyglass areas are presented in Tables 1 and 2, respectively. Operating costs were obtained from American Eagle Energy and held constant for the life of the properties. MHA reviewed the operating costs and consider them realistic. Capital costs associated with new wells and/or workovers were included in the economics if the expenditures were scheduled beyond January 1, 2012.

Included in this report are all the production plots for the producing wells and the individual economic runs for all wells and locations. Summary economics and a one line table are also included.

Statement of Risk

The accuracy of reserve and economic evaluations is always subject to uncertainty. The magnitude of this uncertainty is generally proportional to the quantity and quality of data available for analysis. As a well matures and new information becomes available, revisions may be required which may either increase or decrease the previous reserve assignments. Sometimes these revisions may result not only in a significant change to the reserves and value assigned to a property, but also may impact the total company reserve and economic status. The reserves and forecasts contained in this report were based upon a technical analysis of the available data using accepted engineering principles. However, they must be accepted with the understanding that further information and future reservoir performance subsequent to the date of the estimate may justify their revision. It is MHA’s opinion that the estimated proven reserves and other reserve information as specified in this report are reasonable, and have been prepared in accordance with generally accepted petroleum engineering and evaluation principles, as set forth in the PRMS manual. Notwithstanding the aforementioned opinion, MHA makes no warranties concerning the data and interpretations of such data. In no event shall MHA be liable for any special or consequential damages arising from American Eagle Energy’s use of MHA’s interpretation, reports, or services produced as a result of its work for American Eagle Energy.

It was a pleasure performing this work for American Eagle Energy. Should you have any questions, please call.

Leslie S. O’Connor

Managing Partner

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
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MHA Petroleum Consultants LLC American Eagle Energy
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Table 1

American Eagle Energy - Hardy Field

Economic Inputs

		reference/comment
Well capital costs
Bakken, m$ =	$3,200	Tom L. email 1/15/12 (LSO 1/16/12)
Three Forks, m$ =	not drilled

Well expenses
average monthly op cost =	$5,000g		Tom L. email 2/2/12
water disposal, $/bbl =	$2.00/$0.75	notes 2 & 3	Tom L. email 2/2/12

Price forecasts
oil - constant case =	$92.71	12/31/11 SEC - NSAI website
oil - forecast case =	Sproule YE 2011 Pricing
differential =	-6.24
gas =	na

Taxes& Royalties
severance tax =	5.0%	note 4	Tom L. email 2/2/12
crown royalty =	2.5%	note 5	Tom L. email 2/2/12
override =	8% & 5%	note 6	Tom L. email 2/2/12

Other
working interest, % =	see wi_&_nri tab		Tom L. email 1/15/12 (LSO 1/16/12)
NRI, %=	see wi_&_nri tab		Tom L. email 1/15/12 (LSO 1/16/12)
effective date =	1/1/12		Tom L. email 2/2/12
cost escalation, %/yr =	0% & 2%	note 1	assumption

Notes

1. Constant costs for SEC case, escalated at 2% for forecast case.

2. Water rate = 2 x oil rate.

3. Wtr disposal cost drops from $2/bbl to $0.75/bbl in July 2012 when SWD drilled.

4. Approx sev tax based on 100 mbo incentive volume and sliding tax scale.

5. Approx crown royalty based on 100 mbo incentive volume and sliding royalty scale.

6. Override rate reverts to 5% after producing 100 mbo incentive volume.

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 13

Table 2

American Eagle Energy - Spyglass Field

Economic Inputs

		reference/comment
Well capital costs
Bakken, m$ =	not drilled
Three Forks, m$ =	varies	Tom L. email 1/13/12 (LSO 1/16/12)
	(6,525M$, 6,650M$, 7,800M$)

Well expenses
average monthly op cost =	$6,000	Tom L. email 2/12/12
water disposal, $/bbl =	$2.00	Tom L. email 2/12/12

Price forecasts
oil - constant case =	$92.71	12/31/11 SEC - NSAI website
oil - forecast case =	Sproule YE 2011 Pricing
differential, $/bbl =	-$6.24	Tom L. email 2/12/12
gas =	$4,118
differential, $/mcf =	-$0.83

Taxes& Royalties
severance tax =	5.0%	SPEE website
oil extraction tax =	6.5%	SPEE website
other =	0.0%

Other
Wl, % = see wi_&_drlg sched tab			Tom L. email 1/15/12 (LSO 1/16/12)
NRI, % = see nri's tab			Tom L. email 2/12/12
effective date =	1/1/12		Tom L. email 2/2/12
cost escalation, %/yr =	0% & 2%	note 1	assumption

Notes

1. Constant costs for SEC case, escalated at 2% for forecast case.

2. Water/oil ratio 0.7 Bbl/Bbl

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 14

Hardy Area

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
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MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 16

Hardy Area

SEC Pricing

American Eagle Energy

Reserves and Economics

HARDY

SEC Pricing Effective 01/2012

Reserve Cat	Well	Life		WI (%)		NRI (%)		Start		Gross Oil (Mbbl)		Net Oil (Mbbl)		Net Revenue (M$)		Taxes (M$)		Operating Expense (M$)		Investment (M$)		Un- discounted NCF(M$)		Discounted NCF @ 10% (M$)
1PDP	Hardy 4-16		39.1		75.00000		64.12501		01/2012		219.2		140.5		12,151.8		716.8		1,832.1		0.0		9,602.9		5,292.8
1PDP	Hardy 7-9		17.7		100.00000		85.50000		01/2012		35.9		30.7		2,656.3		0.0		1,291.0		0.0		1,365.3		1,024.7
	TOTAL PDP										255.1		171.3		14,808.1		716.8		3,123.0		0.0		10,968.2		6,317.5
4PUD	PUD SEC16-4-21W2		18.2		75.00000		64.12500		10/2012		224.0		143.6		12,420.6		690.0		1,098.8		2,400.0		8,231.9		3,969.5
4PUD	PUD SEC16-4-21W2 W2		18.4		75.00000		64.12500		01/2013		224.0		143.6		12,420.6		690.0		1,098.8		2,400.0		8,231.9		3,876.1
4PUD	PUD SEC9-4-21W2		17.9		75.00000		64.12500		07/2012		224.0		143.6		12,420.6		690.0		1,107.4		2,400.0		8,223.2		4,057.0
	TOTAL PUD										672.0		430.9		37,261.7		2,069.9		3,304.9		7,200.0		24,686.9		11,902.7
6POS	Hardy 14-17		17.7		85.00000		72.67500		04/2012		224.0		162.8		14,076.6		782.0		1,281.8		0.0		12,012.9		7,403.2
	TOTAL POS										224.0		162.8		14,076.6		782.0		1,281.8		0.0		12,012.9		7,403.2
	TOTAL ALL RESERVE CATEGORIES										1,151.1		765.0		66,146.4		3,568.7		7,709.8		7,200.0		47,668.0		25,623.4

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 17

AMERICAN EAGLE ENERGY	DATE	: 03/09/2012
HARDY	TIME	: 12:15:45
TOTAL PROVED AND POSSIBLE	DBS	: MHA
	SETTINGS	: SETDATA
	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		96.953		0.000		66.207		0.000		86.470		0.000		5724.929		0.000		5724.929
12-2013		146.473		0.000		97.116		0.000		86.470		0.000		8397.626		0.000		8397.626
12-2014		108.710		0.000		72.160		0.000		86.470		0.000		6239.632		0.000		6239.632
12-2015		88.759		0.000		58.948		0.000		86.470		0.000		5097.214		0.000		5097.214
12-2016		76.049		0.000		50.522		0.000		86.470		0.000		4368.619		0.000		4368.619
12-2017		67.106		0.000		44.590		0.000		86.470		0.000		3855.658		0.000		3855.658
12-2018		60.407		0.000		40.144		0.000		86.470		0.000		3471.258		0.000		3471.258
12-2019		55.166		0.000		36.665		0.000		86.470		0.000		3170.461		0.000		3170.461
12-2020		50.934		0.000		33.855		0.000		86.470		0.000		2927.472		0.000		2927.472
12-2021		47.431		0.000		31.529		0.000		86.470		0.000		2726.321		0.000		2726.321
12-2022		44.475		0.000		29.566		0.000		86.470		0.000		2556.545		0.000		2556.545
12-2023		41.941		0.000		27.882		0.000		86.470		0.000		2410.974		0.000		2410.974
12-2024		39.739		0.000		26.419		0.000		86.470		0.000		2284.484		0.000		2284.484
12-2025		37.793		0.000		25.127		0.000		86.470		0.000		2172.707		0.000		2172.707
12-2026		36.048		0.000		23.967		0.000		86.470		0.000		2072.425		0.000		2072.425
S TOT		997.985		0.000		664.697		0.000		86.470		0.000		57476.320		0.000		57476.320
AFTER		153.097		0.000		100.267		0.000		86.470		0.000		8670.074		0.000		8670.074
TOTAL		1151.083		0.000		764.964		0.000		86.470		0.000		66146.391		0.000		66146.391

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		0.000		0.000		472.341		0.000		0.000		7200.000		-1947.413		-1947.413		-1903.848
12-2013		0.000		0.000		495.187		0.000		0.000		0.000		7902.438		5955.025		4969.193
12-2014		0.000		0.000		438.685		0.000		0.000		0.000		5800.947		11755.973		9550.870
12-2015		0.000		0.000		410.980		0.000		0.000		0.000		4686.234		16442.207		12913.986
12-2016		0.000		88.383		393.674		0.000		0.000		0.000		3886.561		20328.768		15450.427
12-2017		0.000		339.620		381.530		0.000		0.000		0.000		3134.509		23463.275		17309.305
12-2018		0.000		334.365		372.448		0.000		0.000		0.000		2764.445		26227.721		18798.957
12-2019		0.000		305.400		365.353		0.000		0.000		0.000		2499.709		28727.428		20023.381
12-2020		0.000		282.000		359.627		0.000		0.000		0.000		2285.844		31013.271		21041.178
12-2021		0.000		262.629		354.892		0.000		0.000		0.000		2108.801		33122.070		21894.732
12-2022		0.000		246.278		350.898		0.000		0.000		0.000		1959.369		35081.441		22615.668
12-2023		0.000		232.258		347.475		0.000		0.000		0.000		1831.240		36912.680		23228.180
12-2024		0.000		220.075		344.504		0.000		0.000		0.000		1719.905		38632.586		23751.139
12-2025		0.000		209.318		341.890		0.000		0.000		0.000		1621.499		40254.086		24199.342
12-2026		0.000		199.687		339.557		0.000		0.000		0.000		1533.180		41787.266		24584.598
S TOT		0.000		2720.014		5769.041		0.000		0.000		7200.000		41787.266		41787.266		24584.598
AFTER		0.000		848.656		1940.741		0.000		0.000		0.000		5880.676		47667.949		25623.396
TOTAL		0.000		3568.671		7709.781		0.000		0.000		7200.000		47667.941		47667.949		25623.396

	OIL		GAS
GROSS WELLS		6.0		0.0
GROSS ULT., MB & MMF		1169.798		0.000
GROSS CUM., MB & MMF		18.716		0.000
GROSS RES., MB & MMF		1151.083		0.000
NET RES., MB & MMF		764.963		0.000
NET REVENUE, M$		66146.375		0.000
INITIAL PRICE, $		86.470		0.000
INITIAL N.I., PCT.		68.288		0.000

		P.W. %		P.W., M$
LIFE, YRS.	39.08		5.00		33760.078
DISCOUNT %	10.00		10.00		25623.400
UNDISCOUNTED PAYOUT, YRS.	1.25		12.00		23272.510
DISCOUNTED PAYOUT, YRS.	1.28		15.00		20384.617
UNDISCOUNTED NET/INVEST.	7.62		18.00		18069.305
DISCOUNTED NET/INVEST.	4.73		20.00		16767.240
RATE-OF-RETURN, PCT.	100.00		30.00		12134.200
INITIAL W.I., PCT.	78.211		60.00		6045.084
			80.00		4232.720
			100.00		3092.165

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 18

AMERICAN EAGLE ENERGY	DATE	: 03/09/2012
HARDY	TIME	: 12:15:44
TOTAL PDP	DBS	: MHA
	SETTINGS	: SETDATA
	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		38.546		0.000		26.355		0.000		86.470		0.000		2278.954		0.000		2278.954
12-2013		23.251		0.000		15.811		0.000		86.470		0.000		1367.209		0.000		1367.209
12-2014		17.626		0.000		11.970		0.000		86.470		0.000		1035.080		0.000		1035.080
12-2015		14.518		0.000		9.854		0.000		86.470		0.000		852.058		0.000		852.058
12-2016		12.499		0.000		8.481		0.000		86.470		0.000		733.318		0.000		733.318
12-2017		11.063		0.000		7.505		0.000		86.470		0.000		648.916		0.000		648.916
12-2018		9.980		0.000		6.769		0.000		86.470		0.000		585.279		0.000		585.279
12-2019		9.128		0.000		6.190		0.000		86.470		0.000		535.269		0.000		535.269
12-2020		8.438		0.000		5.722		0.000		86.470		0.000		494.743		0.000		494.743
12-2021		7.865		0.000		5.333		0.000		86.470		0.000		461.115		0.000		461.115
12-2022		7.380		0.000		5.004		0.000		86.470		0.000		432.677		0.000		432.677
12-2023		6.964		0.000		4.721		0.000		86.470		0.000		408.256		0.000		408.256
12-2024		6.602		0.000		4.475		0.000		86.470		0.000		386.982		0.000		386.982
12-2025		6.271		0.000		4.251		0.000		86.470		0.000		367.598		0.000		367.598
12-2026		5.957		0.000		4.039		0.000		86.470		0.000		349.218		0.000		349.218
S TOT		186.090		0.000		126.479		0.000		86.470		0.000		10936.672		0.000		10936.672
AFTER		68.992		0.000		44.772		0.000		86.470		0.000		3871.412		0.000		3871.412
TOTAL		255.082		0.000		171.251		0.000		86.470		0.000		14808.084		0.000		14808.084

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		0.000		0.000		267.699		0.000		0.000		0.000		2011.255		2011.255		1928.209
12-2013		0.000		0.000		130.887		0.000		0.000		0.000		1236.322		3247.576		3003.313
12-2014		0.000		0.000		120.692		0.000		0.000		0.000		914.388		4161.965		3725.520
12-2015		0.000		0.000		117.318		0.000		0.000		0.000		734.740		4896.705		4252.845
12-2016		0.000		0.000		115.479		0.000		0.000		0.000		617.839		5514.544		4655.847
12-2017		0.000		33.170		114.203		0.000		0.000		0.000		501.543		6016.087		4953.524
12-2018		0.000		45.767		113.256		0.000		0.000		0.000		426.256		6442.343		5183.238
12-2019		0.000		41.881		112.521		0.000		0.000		0.000		380.868		6823.210		5369.815
12-2020		0.000		38.728		111.930		0.000		0.000		0.000		344.086		7167.296		5523.038
12-2021		0.000		36.108		111.443		0.000		0.000		0.000		313.563		7480.859		5649.967
12-2022		0.000		33.891		111.034		0.000		0.000		0.000		287.752		7768.611		5755.854
12-2023		0.000		31.986		110.684		0.000		0.000		0.000		265.586		8034.196		5844.696
12-2024		0.000		30.325		110.381		0.000		0.000		0.000		246.276		8280.472		5919.587
12-2025		0.000		28.807		110.110		0.000		0.000		0.000		228.681		8509.153		5982.806
12-2026		0.000		27.367		109.854		0.000		0.000		0.000		211.997		8721.150		6036.085
S TOT		0.000		348.030		1867.491		0.000		0.000		0.000		8721.150		8721.150		6036.085
AFTER		0.000		368.790		1255.541		0.000		0.000		0.000		2247.080		10968.230		6317.507
TOTAL		0.000		716.820		3123.032		0.000		0.000		0.000		10968.230		10968.230		6317.507

	OIL		GAS
GROSS WELLS		2.0		0.0
GROSS ULT., MB & MMF		273.798		0.000
GROSS CUM., MB & MMF		18.716		0.000
GROSS RES., MB & MMF		255.082		0.000
NET RES., MB & MMF		171.251		0.000
NET REVENUE, M$		14808.086		0.000
INITIAL PRICE, $		86.470		0.000
INITIAL N.I., PCT.		68.374		0.000

		P.W. %		P.W., M$
LIFE, YRS.	39.08		5.00		7858.927
DISCOUNT %	10.00		10.00		6317.506
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		5899.520
DISCOUNTED PAYOUT, YRS.	0.00		15.00		5397.143
UNDISCOUNTED NET/INVEST.	0.00		18.00		4999.930
DISCOUNTED NET/INVEST.	0.00		20.00		4777.461
RATE-OF-RETURN, PCT.	100.00		30.00		3980.000
INITIAL W.I., PCT.	80.482		60.00		2863.628
			80.00		2494.029
			100.00		2243.028

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 19

AMERICAN EAGLE ENERGY	DATE	: 03/09/2012
HARDY	TIME	: 12:15:45
TOTAL PUD	DBS	: MHA
	SETTINGS	: SETDATA
	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		30.361		0.000		19.469		0.000		86.470		0.000		1683.485		0.000		1683.485
12-2013		96.450		0.000		61.849		0.000		86.470		0.000		5348.043		0.000		5348.043
12-2014		70.245		0.000		45.045		0.000		86.470		0.000		3895.031		0.000		3895.031
12-2015		56.852		0.000		36.456		0.000		86.470		0.000		3152.381		0.000		3152.381
12-2016		48.461		0.000		31.076		0.000		86.470		0.000		2687.107		0.000		2687.107
12-2017		42.618		0.000		27.329		0.000		86.470		0.000		2363.106		0.000		2363.106
12-2018		38.271		0.000		24.542		0.000		86.470		0.000		2122.111		0.000		2122.111
12-2019		34.889		0.000		22.373		0.000		86.470		0.000		1934.551		0.000		1934.551
12-2020		32.168		0.000		20.628		0.000		86.470		0.000		1783.660		0.000		1783.660
12-2021		29.922		0.000		19.188		0.000		86.470		0.000		1659.154		0.000		1659.154
12-2022		28.032		0.000		17.976		0.000		86.470		0.000		1554.344		0.000		1554.344
12-2023		26.415		0.000		16.938		0.000		86.470		0.000		1464.670		0.000		1464.670
12-2024		25.012		0.000		16.039		0.000		86.470		0.000		1386.912		0.000		1386.912
12-2025		23.783		0.000		15.251		0.000		86.470		0.000		1318.720		0.000		1318.720
12-2026		22.694		0.000		14.552		0.000		86.470		0.000		1258.341		0.000		1258.341
S TOT		606.173		0.000		388.708		0.000		86.470		0.000		33611.617		0.000		33611.617
AFTER		65.828		0.000		42.212		0.000		86.470		0.000		3650.064		0.000		3650.064
TOTAL		672.000		0.000		430.920		0.000		86.470		0.000		37261.680		0.000		37261.680

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		0.000		0.000		85.119		0.000		0.000		7200.000		-5601.634		-5601.634		-5383.185
12-2013		0.000		0.000		270.633		0.000		0.000		0.000		5077.411		-524.224		-966.208
12-2014		0.000		0.000		233.783		0.000		0.000		0.000		3661.248		3137.024		1925.730
12-2015		0.000		0.000		214.948		0.000		0.000		0.000		2937.433		6074.457		4033.876
12-2016		0.000		34.552		203.148		0.000		0.000		0.000		2449.406		8523.864		5632.262
12-2017		0.000		222.086		194.931		0.000		0.000		0.000		1946.088		10469.952		6786.292
12-2018		0.000		212.211		188.819		0.000		0.000		0.000		1721.081		12191.033		7713.715
12-2019		0.000		193.455		184.063		0.000		0.000		0.000		1557.034		13748.067		8476.386
12-2020		0.000		178.366		180.236		0.000		0.000		0.000		1425.058		15173.125		9110.904
12-2021		0.000		165.915		177.078		0.000		0.000		0.000		1316.161		16489.285		9643.626
12-2022		0.000		155.434		174.420		0.000		0.000		0.000		1224.490		17713.775		10094.164
12-2023		0.000		146.467		172.146		0.000		0.000		0.000		1146.057		18859.834		10477.492
12-2024		0.000		138.691		170.174		0.000		0.000		0.000		1078.047		19937.881		10805.281
12-2025		0.000		131.872		168.444		0.000		0.000		0.000		1018.404		20956.283		11086.776
12-2026		0.000		125.834		166.913		0.000		0.000		0.000		965.594		21921.879		11329.404
S TOT		0.000		1704.885		2784.854		0.000		0.000		7200.000		21921.879		21921.879		11329.404
AFTER		0.000		365.006		520.070		0.000		0.000		0.000		2764.988		24686.865		11902.661
TOTAL		0.000		2069.892		3304.924		0.000		0.000		7200.000		24686.865		24686.865		11902.661

	OIL		GAS
GROSS WELLS		3.0		0.0
GROSS ULT., MB & MMF		672.000		0.000
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		672.000		0.000
NET RES., MB & MMF		430.920		0.000
NET REVENUE, M$		37261.652		0.000
INITIAL PRICE, $		86.470		0.000
INITIAL N.I., PCT.		64.125		0.000

		P.W. %		P.W., M$
LIFE, YRS.	18.42		5.00		16735.590
DISCOUNT %	10.00		10.00		11902.660
UNDISCOUNTED PAYOUT, YRS.	2.14		12.00		10491.310
DISCOUNTED PAYOUT, YRS.	2.33		15.00		8753.830
UNDISCOUNTED NET/INVEST.	4.43		18.00		7361.191
DISCOUNTED NET/INVEST.	2.73		20.00		6579.516
RATE-OF-RETURN, PCT.	66.00		30.00		3820.532
INITIAL W.I., PCT.	75.000		60.00		330.988
			80.00		-635.789
			100.00		-1207.666

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 20

AMERICAN EAGLE ENERGY	DATE	: 03/09/2012
HARDY	TIME	: 12:15:45
TOTAL POSSIBLE	DBS	: MHA
	SETTINGS	: SETDATA
	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		28.046		0.000		20.383		0.000		86.470		0.000		1762.490		0.000		1762.490
12-2013		26.771		0.000		19.456		0.000		86.470		0.000		1682.373		0.000		1682.373
12-2014		20.838		0.000		15.144		0.000		86.470		0.000		1309.522		0.000		1309.522
12-2015		17.389		0.000		12.638		0.000		86.470		0.000		1092.776		0.000		1092.776
12-2016		15.089		0.000		10.966		0.000		86.470		0.000		948.193		0.000		948.193
12-2017		13.425		0.000		9.756		0.000		86.470		0.000		843.636		0.000		843.636
12-2018		12.155		0.000		8.834		0.000		86.470		0.000		763.867		0.000		763.867
12-2019		11.149		0.000		8.103		0.000		86.470		0.000		700.641		0.000		700.641
12-2020		10.329		0.000		7.506		0.000		86.470		0.000		649.068		0.000		649.068
12-2021		9.644		0.000		7.009		0.000		86.470		0.000		606.052		0.000		606.052
12-2022		9.063		0.000		6.586		0.000		86.470		0.000		569.524		0.000		569.524
12-2023		8.562		0.000		6.222		0.000		86.470		0.000		538.048		0.000		538.048
12-2024		8.125		0.000		5.905		0.000		86.470		0.000		510.590		0.000		510.590
12-2025		7.740		0.000		5.625		0.000		86.470		0.000		486.389		0.000		486.389
12-2026		7.397		0.000		5.376		0.000		86.470		0.000		464.866		0.000		464.866
S TOT		205.723		0.000		149.509		0.000		86.470		0.000		12928.037		0.000		12928.037
AFTER		18.278		0.000		13.283		0.000		86.470		0.000		1148.598		0.000		1148.598
TOTAL		224.000		0.000		162.792		0.000		86.470		0.000		14076.635		0.000		14076.635

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		0.000		0.000		119.523		0.000		0.000		0.000		1642.967		1642.967		1551.127
12-2013		0.000		0.000		93.667		0.000		0.000		0.000		1588.706		3231.673		2932.087
12-2014		0.000		0.000		84.211		0.000		0.000		0.000		1225.311		4456.984		3899.619
12-2015		0.000		0.000		78.714		0.000		0.000		0.000		1014.062		5471.045		4627.266
12-2016		0.000		53.831		75.047		0.000		0.000		0.000		819.315		6290.360		5162.319
12-2017		0.000		84.364		72.396		0.000		0.000		0.000		686.877		6977.237		5569.489
12-2018		0.000		76.387		70.373		0.000		0.000		0.000		617.108		7594.346		5902.006
12-2019		0.000		70.064		68.769		0.000		0.000		0.000		561.808		8156.153		6177.181
12-2020		0.000		64.907		67.461		0.000		0.000		0.000		516.700		8672.854		6407.237
12-2021		0.000		60.605		66.370		0.000		0.000		0.000		479.077		9151.931		6601.141
12-2022		0.000		56.952		65.444		0.000		0.000		0.000		447.128		9599.059		6765.652
12-2023		0.000		53.805		64.646		0.000		0.000		0.000		419.598		10018.657		6905.995
12-2024		0.000		51.059		63.949		0.000		0.000		0.000		395.582		10414.239		7026.273
12-2025		0.000		48.639		63.335		0.000		0.000		0.000		374.414		10788.653		7129.763
12-2026		0.000		46.487		62.790		0.000		0.000		0.000		355.589		11144.242		7219.111
S TOT		0.000		667.099		1116.695		0.000		0.000		0.000		11144.242		11144.242		7219.111
AFTER		0.000		114.860		165.130		0.000		0.000		0.000		868.609		12012.851		7403.234
TOTAL		0.000		781.959		1281.825		0.000		0.000		0.000		12012.851		12012.851		7403.234

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		224.000		0.000
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		224.000		0.000
NET RES., MB & MMF		162.792		0.000
NET REVENUE, M$		14076.636		0.000
INITIAL PRICE, $		86.470		0.000
INITIAL N.I., PCT.		72.675		0.000

		P.W. %		P.W., M$
LIFE, YRS.	17.67		5.00		9165.565
DISCOUNT %	10.00		10.00		7403.234
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		6881.680
DISCOUNTED PAYOUT, YRS.	0.00		15.00		6233.646
UNDISCOUNTED NET/INVEST.	0.00		18.00		5708.184
DISCOUNTED NET/INVEST.	0.00		20.00		5410.263
RATE-OF-RETURN, PCT.	100.00		30.00		4333.668
INITIAL W.I., PCT.	85.000		60.00		2850.468
			80.00		2374.480
			100.00		2056.803

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 21

Hardy 4-16	DATE	: 03/09/2012
4N 21W 16	TIME	: 12:20:36
1PDP	DBS	: MHA
	SETTINGS	: SETDATA
	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		30.884		0.000		19.804		0.000		86.470		0.000		1712.466		0.000		1712.466
12-2013		19.034		0.000		12.206		0.000		86.470		0.000		1055.435		0.000		1055.435
12-2014		14.502		0.000		9.299		0.000		86.470		0.000		804.125		0.000		804.125
12-2015		11.973		0.000		7.678		0.000		86.470		0.000		663.885		0.000		663.885
12-2016		10.322		0.000		6.619		0.000		86.470		0.000		572.342		0.000		572.342
12-2017		9.144		0.000		5.864		0.000		86.470		0.000		507.033		0.000		507.033
12-2018		8.254		0.000		5.293		0.000		86.470		0.000		457.669		0.000		457.669
12-2019		7.553		0.000		4.843		0.000		86.470		0.000		418.809		0.000		418.809
12-2020		6.984		0.000		4.479		0.000		86.470		0.000		387.275		0.000		387.275
12-2021		6.512		0.000		4.176		0.000		86.470		0.000		361.082		0.000		361.082
12-2022		6.112		0.000		3.919		0.000		86.470		0.000		338.913		0.000		338.913
12-2023		5.769		0.000		3.699		0.000		86.470		0.000		319.862		0.000		319.862
12-2024		5.469		0.000		3.507		0.000		86.470		0.000		303.251		0.000		303.251
12-2025		5.195		0.000		3.331		0.000		86.470		0.000		288.071		0.000		288.071
12-2026		4.935		0.000		3.165		0.000		86.470		0.000		273.667		0.000		273.667
S TOT		152.643		0.000		97.882		0.000		86.470		0.000		8463.885		0.000		8463.885
AFTER		66.510		0.000		42.650		0.000		86.470		0.000		3687.903		0.000		3687.903
TOTAL		219.153		0.000		140.532		0.000		86.470		0.000		12151.788		0.000		12151.788

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		0.000		0.000		113.088		0.000		0.000		0.000		1599.378		1599.378		1533.044
12-2013		0.000		0.000		49.817		0.000		0.000		0.000		1005.618		2604.996		2407.365
12-2014		0.000		0.000		45.425		0.000		0.000		0.000		758.700		3363.696		3006.527
12-2015		0.000		0.000		45.000		0.000		0.000		0.000		618.885		3982.581		3450.654
12-2016		0.000		0.000		45.000		0.000		0.000		0.000		527.342		4509.923		3794.592
12-2017		0.000		33.170		45.000		0.000		0.000		0.000		428.863		4938.786		4049.154
12-2018		0.000		45.767		45.000		0.000		0.000		0.000		366.902		5305.688		4246.862
12-2019		0.000		41.881		45.000		0.000		0.000		0.000		331.928		5637.616		4409.449
12-2020		0.000		38.728		45.000		0.000		0.000		0.000		303.548		5941.164		4544.607
12-2021		0.000		36.108		45.000		0.000		0.000		0.000		279.973		6221.138		4657.929
12-2022		0.000		33.891		45.000		0.000		0.000		0.000		260.021		6481.159		4753.603
12-2023		0.000		31.986		45.000		0.000		0.000		0.000		242.876		6724.035		4834.840
12-2024		0.000		30.325		45.000		0.000		0.000		0.000		227.926		6951.961		4904.145
12-2025		0.000		28.807		45.000		0.000		0.000		0.000		214.263		7166.225		4963.372
12-2026		0.000		27.367		45.000		0.000		0.000		0.000		201.300		7367.525		5013.958
S TOT		0.000		348.030		748.330		0.000		0.000		0.000		7367.525		7367.525		5013.958
AFTER		0.000		368.790		1083.750		0.000		0.000		0.000		2235.362		9602.886		5292.797
TOTAL		0.000		716.820		1832.080		0.000		0.000		0.000		9602.887		9602.886		5292.797

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		228.778		0.000
GROSS CUM., MB & MMF		9.625		0.000
GROSS RES., MB & MMF		219.153		0.000
NET RES., MB & MMF		140.532		0.000
NET REVENUE, M$		12151.791		0.000
INITIAL PRICE, $		86.470		0.000
INITIAL N.I., PCT.		64.125		0.000

		P.W. %		P.W., M$
LIFE, YRS.	39.08		5.00		6693.821
DISCOUNT %	10.00		10.00		5292.797
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		4919.718
DISCOUNTED PAYOUT, YRS.	0.00		15.00		4475.776
UNDISCOUNTED NET/INVEST.	0.00		18.00		4128.382
DISCOUNTED NET/INVEST.	0.00		20.00		3935.241
RATE-OF-RETURN, PCT.	100.00		30.00		3251.220
INITIAL W.I., PCT.	75.000		60.00		2313.749
			80.00		2007.931
			100.00		1801.443

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 22

Hardy 7-9	DATE	: 03/09/2012
4N 21W 9	TIME	: 12:20:36
1PDP	DBS	: MHA
	SETTINGS	: SETDATA
	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		7.662		0.000		6.551		0.000		86.470		0.000		566.487		0.000		566.487
12-2013		4.217		0.000		3.606		0.000		86.470		0.000		311.774		0.000		311.774
12-2014		3.124		0.000		2.671		0.000		86.470		0.000		230.955		0.000		230.955
12-2015		2.545		0.000		2.176		0.000		86.470		0.000		188.173		0.000		188.173
12-2016		2.177		0.000		1.862		0.000		86.470		0.000		160.976		0.000		160.976
12-2017		1.919		0.000		1.641		0.000		86.470		0.000		141.884		0.000		141.884
12-2018		1.726		0.000		1.476		0.000		86.470		0.000		127.609		0.000		127.609
12-2019		1.575		0.000		1.347		0.000		86.470		0.000		116.461		0.000		116.461
12-2020		1.454		0.000		1.243		0.000		86.470		0.000		107.468		0.000		107.468
12-2021		1.353		0.000		1.157		0.000		86.470		0.000		100.033		0.000		100.033
12-2022		1.268		0.000		1.084		0.000		86.470		0.000		93.764		0.000		93.764
12-2023		1.196		0.000		1.022		0.000		86.470		0.000		88.394		0.000		88.394
12-2024		1.133		0.000		0.968		0.000		86.470		0.000		83.730		0.000		83.730
12-2025		1.076		0.000		0.920		0.000		86.470		0.000		79.527		0.000		79.527
12-2026		1.022		0.000		0.874		0.000		86.470		0.000		75.551		0.000		75.551
S TOT		33.447		0.000		28.597		0.000		86.470		0.000		2472.785		0.000		2472.785
AFTER		2.482		0.000		2.122		0.000		86.470		0.000		183.509		0.000		183.509
TOTAL		35.929		0.000		30.719		0.000		86.470		0.000		2656.294		0.000		2656.294

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		0.000		0.000		154.611		0.000		0.000		0.000		411.876		411.876		395.165
12-2013		0.000		0.000		81.070		0.000		0.000		0.000		230.704		642.580		595.949
12-2014		0.000		0.000		75.267		0.000		0.000		0.000		155.688		798.269		718.993
12-2015		0.000		0.000		72.318		0.000		0.000		0.000		115.855		914.123		802.191
12-2016		0.000		0.000		70.479		0.000		0.000		0.000		90.497		1004.620		861.254
12-2017		0.000		0.000		69.203		0.000		0.000		0.000		72.681		1077.301		904.370
12-2018		0.000		0.000		68.256		0.000		0.000		0.000		59.353		1136.654		936.376
12-2019		0.000		0.000		67.521		0.000		0.000		0.000		48.940		1185.594		960.366
12-2020		0.000		0.000		66.930		0.000		0.000		0.000		40.538		1226.132		978.430
12-2021		0.000		0.000		66.443		0.000		0.000		0.000		33.590		1259.722		992.038
12-2022		0.000		0.000		66.034		0.000		0.000		0.000		27.730		1287.452		1002.251
12-2023		0.000		0.000		65.684		0.000		0.000		0.000		22.710		1310.161		1009.856
12-2024		0.000		0.000		65.381		0.000		0.000		0.000		18.349		1328.511		1015.442
12-2025		0.000		0.000		65.110		0.000		0.000		0.000		14.417		1342.928		1019.434
12-2026		0.000		0.000		64.854		0.000		0.000		0.000		10.696		1353.625		1022.128
S TOT		0.000		0.000		1119.161		0.000		0.000		0.000		1353.625		1353.625		1022.128
AFTER		0.000		0.000		171.791		0.000		0.000		0.000		11.718		1365.343		1024.710
TOTAL		0.000		0.000		1290.952		0.000		0.000		0.000		1365.343		1365.343		1024.710

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		45.020		0.000
GROSS CUM., MB & MMF		9.091		0.000
GROSS RES., MB & MMF		35.929		0.000
NET RES., MB & MMF		30.719		0.000
NET REVENUE, M$		2656.294		0.000
INITIAL PRICE, $		86.470		0.000
INITIAL N.I., PCT.		85.500		0.000

		P.W. %		P.W., M$
LIFE, YRS.	17.67		5.00		1165.105
DISCOUNT %	10.00		10.00		1024.710
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		979.802
DISCOUNTED PAYOUT, YRS.	0.00		15.00		921.367
UNDISCOUNTED NET/INVEST.	0.00		18.00		871.547
DISCOUNTED NET/INVEST.	0.00		20.00		842.220
RATE-OF-RETURN, PCT.	100.00		30.00		728.780
INITIAL W.I., PCT.	100.000		60.00		549.880
			80.00		486.098
			100.00		441.584

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 23

PUD SEC16-4-21W2	DATE	: 03/09/2012
4N 21W 16	TIME	: 12:20:36
4PUD	DBS	: MHA
	SETTINGS	: SETDATA
	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		10.565		0.000		6.775		0.000		86.470		0.000		585.839		0.000		585.839
12-2013		31.870		0.000		20.437		0.000		86.470		0.000		1767.144		0.000		1767.144
12-2014		23.339		0.000		14.966		0.000		86.470		0.000		1294.138		0.000		1294.138
12-2015		18.918		0.000		12.131		0.000		86.470		0.000		1049.010		0.000		1049.010
12-2016		16.137		0.000		10.348		0.000		86.470		0.000		894.765		0.000		894.765
12-2017		14.196		0.000		9.103		0.000		86.470		0.000		787.143		0.000		787.143
12-2018		12.751		0.000		8.176		0.000		86.470		0.000		707.007		0.000		707.007
12-2019		11.625		0.000		7.455		0.000		86.470		0.000		644.600		0.000		644.600
12-2020		10.719		0.000		6.874		0.000		86.470		0.000		594.372		0.000		594.372
12-2021		9.972		0.000		6.394		0.000		86.470		0.000		552.916		0.000		552.916
12-2022		9.342		0.000		5.991		0.000		86.470		0.000		518.010		0.000		518.010
12-2023		8.803		0.000		5.645		0.000		86.470		0.000		488.141		0.000		488.141
12-2024		8.336		0.000		5.346		0.000		86.470		0.000		462.238		0.000		462.238
12-2025		7.927		0.000		5.083		0.000		86.470		0.000		439.520		0.000		439.520
12-2026		7.564		0.000		4.850		0.000		86.470		0.000		419.402		0.000		419.402
S TOT		202.064		0.000		129.574		0.000		86.470		0.000		11204.247		0.000		11204.247
AFTER		21.936		0.000		14.066		0.000		86.470		0.000		1216.314		0.000		1216.314
TOTAL		224.000		0.000		143.640		0.000		86.470		0.000		12420.561		0.000		12420.561

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		0.000		0.000		26.108		0.000		0.000		2400.000		-1840.269		-1840.269		-1773.216
12-2013		0.000		0.000		89.817		0.000		0.000		0.000		1677.327		-162.941		-314.183
12-2014		0.000		0.000		77.821		0.000		0.000		0.000		1216.317		1053.375		646.540
12-2015		0.000		0.000		71.604		0.000		0.000		0.000		977.406		2030.781		1348.003
12-2016		0.000		6.997		67.692		0.000		0.000		0.000		820.076		2850.857		1883.088
12-2017		0.000		78.714		64.963		0.000		0.000		0.000		643.466		3494.323		2264.553
12-2018		0.000		70.701		62.931		0.000		0.000		0.000		573.376		4067.698		2573.522
12-2019		0.000		64.460		61.348		0.000		0.000		0.000		518.792		4586.491		2827.638
12-2020		0.000		59.437		60.074		0.000		0.000		0.000		474.861		5061.352		3039.074
12-2021		0.000		55.292		59.023		0.000		0.000		0.000		438.602		5499.954		3216.600
12-2022		0.000		51.801		58.137		0.000		0.000		0.000		408.072		5908.026		3366.746
12-2023		0.000		48.814		57.380		0.000		0.000		0.000		381.947		6289.974		3494.498
12-2024		0.000		46.224		56.723		0.000		0.000		0.000		359.291		6649.265		3603.743
12-2025		0.000		43.952		56.147		0.000		0.000		0.000		339.421		6988.686		3697.562
12-2026		0.000		41.940		55.637		0.000		0.000		0.000		321.826		7310.511		3778.427
S TOT		0.000		568.332		925.403		0.000		0.000		2400.000		7310.511		7310.511		3778.427
AFTER		0.000		121.631		173.347		0.000		0.000		0.000		921.336		8231.847		3969.548
TOTAL		0.000		689.964		1098.750		0.000		0.000		2400.000		8231.847		8231.847		3969.548

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		224.000		0.000
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		224.000		0.000
NET RES., MB & MMF		143.640		0.000
NET REVENUE, M$		12420.551		0.000
INITIAL PRICE, $		86.470		0.000
INITIAL N.I., PCT.		64.125		0.000

		P.W. %		P.W., M$
LIFE, YRS.	18.17		5.00		5581.068
DISCOUNT %	10.00		10.00		3969.548
UNDISCOUNTED PAYOUT, YRS.	2.13		12.00		3498.886
DISCOUNTED PAYOUT, YRS.	2.33		15.00		2919.436
UNDISCOUNTED NET/INVEST.	4.43		18.00		2454.972
DISCOUNTED NET/INVEST.	2.73		20.00		2194.271
RATE-OF-RETURN, PCT.	66.12		30.00		1274.191
INITIAL W.I., PCT.	75.000		60.00		112.054
			80.00		-208.325
			100.00		-396.590

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 24

PUD SEC16-4-21W2 W2	DATE	: 03/09/2012
4N 21W 16	TIME	: 12:20:36
4PUD	DBS	: MHA
	SETTINGS	: SETDATA
	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		0.000		0.000		0.000		0.000		0.000		0.000		0.000		0.000		0.000
12-2013		35.542		0.000		22.791		0.000		86.470		0.000		1970.773		0.000		1970.773
12-2014		24.907		0.000		15.971		0.000		86.470		0.000		1381.043		0.000		1381.043
12-2015		19.820		0.000		12.710		0.000		86.470		0.000		1099.002		0.000		1099.002
12-2016		16.734		0.000		10.730		0.000		86.470		0.000		927.862		0.000		927.862
12-2017		14.625		0.000		9.378		0.000		86.470		0.000		810.947		0.000		810.947
12-2018		13.077		0.000		8.385		0.000		86.470		0.000		725.094		0.000		725.094
12-2019		11.883		0.000		7.620		0.000		86.470		0.000		658.890		0.000		658.890
12-2020		10.929		0.000		7.008		0.000		86.470		0.000		605.999		0.000		605.999
12-2021		10.146		0.000		6.506		0.000		86.470		0.000		562.594		0.000		562.594
12-2022		9.490		0.000		6.086		0.000		86.470		0.000		526.215		0.000		526.215
12-2023		8.931		0.000		5.727		0.000		86.470		0.000		495.201		0.000		495.201
12-2024		8.447		0.000		5.417		0.000		86.470		0.000		468.389		0.000		468.389
12-2025		8.024		0.000		5.146		0.000		86.470		0.000		444.935		0.000		444.935
12-2026		7.651		0.000		4.906		0.000		86.470		0.000		424.214		0.000		424.214
S TOT		200.205		0.000		128.382		0.000		86.470		0.000		11101.157		0.000		11101.157
AFTER		23.795		0.000		15.259		0.000		86.470		0.000		1319.403		0.000		1319.403
TOTAL		224.000		0.000		143.640		0.000		86.470		0.000		12420.560		0.000		12420.560

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		0.000		0.000		0.000		0.000		0.000		2400.000		-2400.000		-2400.000		-2234.430
12-2013		0.000		0.000		94.981		0.000		0.000		0.000		1875.792		-524.208		-601.865
12-2014		0.000		0.000		80.025		0.000		0.000		0.000		1301.018		776.810		425.966
12-2015		0.000		0.000		72.872		0.000		0.000		0.000		1026.130		1802.940		1162.473
12-2016		0.000		0.000		68.532		0.000		0.000		0.000		859.330		2662.271		1722.995
12-2017		0.000		66.871		65.567		0.000		0.000		0.000		678.510		3340.780		2125.582
12-2018		0.000		72.509		63.389		0.000		0.000		0.000		589.195		3929.975		2443.085
12-2019		0.000		65.889		61.710		0.000		0.000		0.000		531.291		4461.266		2703.329
12-2020		0.000		60.600		60.369		0.000		0.000		0.000		485.030		4946.296		2919.297
12-2021		0.000		56.259		59.268		0.000		0.000		0.000		447.067		5393.363		3100.251
12-2022		0.000		52.621		58.345		0.000		0.000		0.000		415.248		5808.610		3253.039
12-2023		0.000		49.520		57.559		0.000		0.000		0.000		388.122		6196.732		3382.858
12-2024		0.000		46.839		56.879		0.000		0.000		0.000		364.671		6561.403		3493.740
12-2025		0.000		44.494		56.284		0.000		0.000		0.000		344.158		6905.561		3588.868
12-2026		0.000		42.421		55.759		0.000		0.000		0.000		326.034		7231.595		3670.792
S TOT		0.000		558.023		911.539		0.000		0.000		2400.000		7231.595		7231.595		3670.792
AFTER		0.000		131.940		187.212		0.000		0.000		0.000		1000.251		8231.847		3876.082
TOTAL		0.000		689.964		1098.750		0.000		0.000		2400.000		8231.847		8231.847		3876.082

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		224.000		0.000
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		224.000		0.000
NET RES., MB & MMF		143.640		0.000
NET REVENUE, M$		12420.551		0.000
INITIAL PRICE, $		86.470		0.000
INITIAL N.I., PCT.		64.125		0.000

		P.W. %		P.W., M$
LIFE, YRS.	18.42		5.00		5513.407
DISCOUNT %	10.00		10.00		3876.081
UNDISCOUNTED PAYOUT, YRS.	2.40		12.00		3401.146
DISCOUNTED PAYOUT, YRS.	2.59		15.00		2819.190
UNDISCOUNTED NET/INVEST.	4.43		18.00		2355.462
DISCOUNTED NET/INVEST.	2.73		20.00		2096.501
RATE-OF-RETURN, PCT.	66.16		30.00		1193.297
INITIAL W.I., PCT.	75.000		60.00		99.632
			80.00		-179.855
			100.00		-333.491

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 25

PUD SEC9-4-21W2	DATE	: 03/09/2012
4N 21W 9	TIME	: 12:20:36
4PUD	DBS	: MHA
	SETTINGS	: SETDATA
	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		19.796		0.000		12.694		0.000		86.470		0.000		1097.646		0.000		1097.646
12-2013		29.038		0.000		18.621		0.000		86.470		0.000		1610.126		0.000		1610.126
12-2014		22.000		0.000		14.107		0.000		86.470		0.000		1219.850		0.000		1219.850
12-2015		18.113		0.000		11.615		0.000		86.470		0.000		1004.369		0.000		1004.369
12-2016		15.591		0.000		9.997		0.000		86.470		0.000		864.480		0.000		864.480
12-2017		13.797		0.000		8.847		0.000		86.470		0.000		765.016		0.000		765.016
12-2018		12.444		0.000		7.980		0.000		86.470		0.000		690.010		0.000		690.010
12-2019		11.381		0.000		7.298		0.000		86.470		0.000		631.061		0.000		631.061
12-2020		10.519		0.000		6.746		0.000		86.470		0.000		583.288		0.000		583.288
12-2021		9.804		0.000		6.287		0.000		86.470		0.000		543.644		0.000		543.644
12-2022		9.200		0.000		5.899		0.000		86.470		0.000		510.119		0.000		510.119
12-2023		8.681		0.000		5.566		0.000		86.470		0.000		481.328		0.000		481.328
12-2024		8.229		0.000		5.277		0.000		86.470		0.000		456.285		0.000		456.285
12-2025		7.832		0.000		5.022		0.000		86.470		0.000		434.266		0.000		434.266
12-2026		7.479		0.000		4.796		0.000		86.470		0.000		414.725		0.000		414.725
S TOT		203.903		0.000		130.753		0.000		86.470		0.000		11306.214		0.000		11306.214
AFTER		20.097		0.000		12.887		0.000		86.470		0.000		1114.346		0.000		1114.346
TOTAL		224.000		0.000		143.640		0.000		86.470		0.000		12420.560		0.000		12420.560

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		0.000		0.000		59.011		0.000		0.000		2400.000		-1361.365		-1361.365		-1375.539
12-2013		0.000		0.000		85.835		0.000		0.000		0.000		1524.291		162.926		-50.160
12-2014		0.000		0.000		75.937		0.000		0.000		0.000		1143.913		1306.839		853.224
12-2015		0.000		0.000		70.472		0.000		0.000		0.000		933.897		2240.736		1523.401
12-2016		0.000		27.555		66.924		0.000		0.000		0.000		770.001		3010.737		2026.180
12-2017		0.000		76.502		64.402		0.000		0.000		0.000		624.113		3634.850		2396.158
12-2018		0.000		69.001		62.499		0.000		0.000		0.000		558.510		4193.360		2697.108
12-2019		0.000		63.106		61.004		0.000		0.000		0.000		506.951		4700.311		2945.418
12-2020		0.000		58.329		59.793		0.000		0.000		0.000		465.167		5165.477		3152.534
12-2021		0.000		54.364		58.787		0.000		0.000		0.000		430.492		5595.970		3326.775
12-2022		0.000		51.012		57.937		0.000		0.000		0.000		401.170		5997.139		3474.379
12-2023		0.000		48.133		57.207		0.000		0.000		0.000		375.988		6373.127		3600.137
12-2024		0.000		45.629		56.572		0.000		0.000		0.000		354.085		6727.212		3707.799
12-2025		0.000		43.427		56.014		0.000		0.000		0.000		334.826		7062.038		3800.346
12-2026		0.000		41.472		55.518		0.000		0.000		0.000		317.734		7379.772		3880.184
S TOT		0.000		578.529		947.912		0.000		0.000		2400.000		7379.772		7379.772		3880.184
AFTER		0.000		111.435		159.511		0.000		0.000		0.000		843.400		8223.173		4057.031
TOTAL		0.000		689.964		1107.423		0.000		0.000		2400.000		8223.173		8223.173		4057.031

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		224.000		0.000
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		224.000		0.000
NET RES., MB & MMF		143.640		0.000
NET REVENUE, M$		12420.551		0.000
INITIAL PRICE, $		86.470		0.000
INITIAL N.I., PCT.		64.125		0.000

		P.W. %		P.W., M$
LIFE, YRS.	17.92		5.00		5641.113
DISCOUNT %	10.00		10.00		4057.031
UNDISCOUNTED PAYOUT, YRS.	1.89		12.00		3591.278
DISCOUNTED PAYOUT, YRS.	2.06		15.00		3015.204
UNDISCOUNTED NET/INVEST.	4.43		18.00		2550.757
DISCOUNTED NET/INVEST.	2.73		20.00		2288.744
RATE-OF-RETURN, PCT.	65.77		30.00		1353.044
INITIAL W.I., PCT.	75.000		60.00		119.302
			80.00		-247.609
			100.00		-477.586

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 26

Hardy 14-17	DATE	: 03/09/2012
4N 21W 17	TIME	: 12:20:36
6POS	DBS	: MHA
	SETTINGS	: SETDATA
	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		28.046		0.000		20.383		0.000		86.470		0.000		1762.490		0.000		1762.490
12-2013		26.771		0.000		19.456		0.000		86.470		0.000		1682.373		0.000		1682.373
12-2014		20.838		0.000		15.144		0.000		86.470		0.000		1309.522		0.000		1309.522
12-2015		17.389		0.000		12.638		0.000		86.470		0.000		1092.776		0.000		1092.776
12-2016		15.089		0.000		10.966		0.000		86.470		0.000		948.193		0.000		948.193
12-2017		13.425		0.000		9.756		0.000		86.470		0.000		843.636		0.000		843.636
12-2018		12.155		0.000		8.834		0.000		86.470		0.000		763.867		0.000		763.867
12-2019		11.149		0.000		8.103		0.000		86.470		0.000		700.641		0.000		700.641
12-2020		10.329		0.000		7.506		0.000		86.470		0.000		649.068		0.000		649.068
12-2021		9.644		0.000		7.009		0.000		86.470		0.000		606.052		0.000		606.052
12-2022		9.063		0.000		6.586		0.000		86.470		0.000		569.524		0.000		569.524
12-2023		8.562		0.000		6.222		0.000		86.470		0.000		538.048		0.000		538.048
12-2024		8.125		0.000		5.905		0.000		86.470		0.000		510.590		0.000		510.590
12-2025		7.740		0.000		5.625		0.000		86.470		0.000		486.389		0.000		486.389
12-2026		7.397		0.000		5.376		0.000		86.470		0.000		464.866		0.000		464.866
S TOT		205.723		0.000		149.509		0.000		86.470		0.000		12928.037		0.000		12928.037
AFTER		18.278		0.000		13.283		0.000		86.470		0.000		1148.598		0.000		1148.598
TOTAL		224.000		0.000		162.792		0.000		86.470		0.000		14076.635		0.000		14076.635

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		0.000		0.000		119.523		0.000		0.000		0.000		1642.967		1642.967		1551.127
12-2013		0.000		0.000		93.667		0.000		0.000		0.000		1588.706		3231.673		2932.087
12-2014		0.000		0.000		84.211		0.000		0.000		0.000		1225.311		4456.984		3899.619
12-2015		0.000		0.000		78.714		0.000		0.000		0.000		1014.062		5471.045		4627.266
12-2016		0.000		53.831		75.047		0.000		0.000		0.000		819.315		6290.360		5162.319
12-2017		0.000		84.364		72.396		0.000		0.000		0.000		686.877		6977.237		5569.489
12-2018		0.000		76.387		70.373		0.000		0.000		0.000		617.108		7594.346		5902.006
12-2019		0.000		70.064		68.769		0.000		0.000		0.000		561.808		8156.153		6177.181
12-2020		0.000		64.907		67.461		0.000		0.000		0.000		516.700		8672.854		6407.237
12-2021		0.000		60.605		66.370		0.000		0.000		0.000		479.077		9151.931		6601.141
12-2022		0.000		56.952		65.444		0.000		0.000		0.000		447.128		9599.059		6765.652
12-2023		0.000		53.805		64.646		0.000		0.000		0.000		419.598		10018.657		6905.995
12-2024		0.000		51.059		63.949		0.000		0.000		0.000		395.582		10414.239		7026.273
12-2025		0.000		48.639		63.335		0.000		0.000		0.000		374.414		10788.653		7129.763
12-2026		0.000		46.487		62.790		0.000		0.000		0.000		355.589		11144.242		7219.111
S TOT		0.000		667.099		1116.695		0.000		0.000		0.000		11144.242		11144.242		7219.111
AFTER		0.000		114.860		165.130		0.000		0.000		0.000		868.609		12012.851		7403.234
TOTAL		0.000		781.959		1281.825		0.000		0.000		0.000		12012.851		12012.851		7403.234

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		224.000		0.000
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		224.000		0.000
NET RES., MB & MMF		162.792		0.000
NET REVENUE, M$		14076.636		0.000
INITIAL PRICE, $		86.470		0.000
INITIAL N.I., PCT.		72.675		0.000

		P.W. %		P.W., M$
LIFE, YRS.	17.67		5.00		9165.565
DISCOUNT %	10.00		10.00		7403.234
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		6881.680
DISCOUNTED PAYOUT, YRS.	0.00		15.00		6233.646
UNDISCOUNTED NET/INVEST.	0.00		18.00		5708.184
DISCOUNTED NET/INVEST.	0.00		20.00		5410.263
RATE-OF-RETURN, PCT.	100.00		30.00		4333.668
INITIAL W.I., PCT.	85.000		60.00		2850.468
			80.00		2374.480
			100.00		2056.803

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 27

Hardy Area

Sproule Pricing

American Eagle Energy

Reserves and Economics

HARDY

Sproule Pricing Effective 01/2012

Reserve Cat	Well	Life		WI (%)		NRI (%)		Start	Gross Oil (Mbbl)		Net Oil (Mbbl)		Net Revenue (M$)		Taxes (M$)		Operating Expense (M$)		Investment (M$)		Un- discounted NCF(M$)		Discounted NCF @ 10% (M$)
1PDP	Hardy 4-16		39.1		75.00000		64.12500	01/2012		219.2		140.5		15,495.1		1,028.7		2,702.1		0.0		11,764.2		5,820.5
1PDP	Hardy 7-9		18.3		100.00000		85.50000	01/2012		36.5		31.2		3,049.8		0.0		1,547.0		0.0		1,502.8		1,103.5
	TOTAL PDP									255.7		171.7		18,544.9		1,028.7		4,249.1		0.0		13,267.1		6,923.9
4PUD	PUD SEC16-4-21W2		18.2		75.00000		64.12501	10/2012		224.0		143.6		14,193.1		848.1		1,255.5		2,400.0		9,689.4		4,534.6
4PUD	PUD SEC16-4-21W2 W2		18.4		75.00000		64.12501	01/2013		224.0		143.6		14,230.6		852.6		1,260.3		2,400.0		9,717.7		4,430.0
4PUD	PUD SEC9-4-21W2		17.9		75.00000		64.12501	07/2012		224.0		143.6		14,154.8		843.5		1,259.5		2,400.0		9,651.8		4,631.7
	TOTAL PUD									672.0		430.9		42,578.4		2,544.2		3,775.3		7,200.0		29,058.9		13,596.3
6POS	Hardy 14-17		17.7		85.00000		72.67501	04/2012		224.0		162.8		15,999.6		951.0		1,449.0		0.0		13,599.5		8,064.4
	TOTAL POS									224.0		162.8		15,999.6		951.0		1,449.0		0.0		13,599.5		8,064.4
	TOTAL ALL RESERVE CATEGORIES									1,151.7		765.5		77,122.9		4,523.9		9,473.5		7,200.0		55,925.5		28,584.6

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 28

AMERICAN EAGLE ENERGY	DATE	: 03/09/2012
HARDY	TIME	: 12:17:26
TOTAL PROVED AND POSSIBLE	DBS	: MHA
	SETTINGS	: SETDATA
	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		96.953		0.000		66.207		0.000		91.830		0.000		6079.799		0.000		6079.799
12-2013		146.473		0.000		97.116		0.000		88.660		0.000		8610.309		0.000		8610.309
12-2014		108.710		0.000		72.160		0.000		85.760		0.000		6188.399		0.000		6188.399
12-2015		88.759		0.000		58.948		0.000		91.180		0.000		5374.858		0.000		5374.858
12-2016		76.049		0.000		50.522		0.000		93.130		0.000		4705.094		0.000		4705.094
12-2017		67.106		0.000		44.590		0.000		95.110		0.000		4240.913		0.000		4240.913
12-2018		60.407		0.000		40.144		0.000		97.140		0.000		3899.594		0.000		3899.594
12-2019		55.166		0.000		36.665		0.000		99.210		0.000		3637.579		0.000		3637.579
12-2020		50.934		0.000		33.855		0.000		101.320		0.000		3430.224		0.000		3430.224
12-2021		47.431		0.000		31.529		0.000		103.470		0.000		3262.316		0.000		3262.316
12-2022		44.475		0.000		29.566		0.000		105.664		0.000		3124.034		0.000		3124.034
12-2023		41.941		0.000		27.882		0.000		107.902		0.000		3008.553		0.000		3008.553
12-2024		39.739		0.000		26.419		0.000		110.185		0.000		2911.023		0.000		2911.023
12-2025		37.793		0.000		25.127		0.000		112.514		0.000		2827.098		0.000		2827.098
12-2026		36.048		0.000		23.967		0.000		114.889		0.000		2753.535		0.000		2753.535
S TOT		997.985		0.000		664.697		0.000		96.365		0.000		64053.332		0.000		64053.332
AFTER		153.666		0.000		100.754		0.000		129.718		0.000		13069.568		0.000		13069.568
TOTAL		1151.652		0.000		765.450		0.000		100.755		0.000		77122.898		0.000		77122.898

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		0.000		0.000		472.341		0.000		0.000		7200.000		-1592.542		-1592.542		-1568.303
12-2013		0.000		0.000		501.007		0.000		0.000		0.000		8109.303		6516.761		5484.651
12-2014		0.000		0.000		450.442		0.000		0.000		0.000		5737.958		12254.719		10016.600
12-2015		0.000		0.000		428.791		0.000		0.000		0.000		4946.067		17200.785		13566.188
12-2016		0.000		95.191		417.662		0.000		0.000		0.000		4192.241		21393.027		16302.120
12-2017		0.000		373.555		411.817		0.000		0.000		0.000		3455.541		24848.568		18351.381
12-2018		0.000		375.624		409.161		0.000		0.000		0.000		3114.810		27963.379		20029.832
12-2019		0.000		350.396		408.620		0.000		0.000		0.000		2878.563		30841.941		21439.826
12-2020		0.000		330.430		409.580		0.000		0.000		0.000		2690.214		33532.156		22637.674
12-2021		0.000		314.262		411.664		0.000		0.000		0.000		2536.390		36068.547		23664.299
12-2022		0.000		300.946		414.625		0.000		0.000		0.000		2408.464		38477.012		24550.477
12-2023		0.000		289.825		418.297		0.000		0.000		0.000		2300.431		40777.445		25319.924
12-2024		0.000		280.433		422.562		0.000		0.000		0.000		2208.028		42985.473		25991.301
12-2025		0.000		272.362		427.329		0.000		0.000		0.000		2127.406		45112.879		26579.342
12-2026		0.000		265.315		432.525		0.000		0.000		0.000		2055.694		47168.574		27095.895
S TOT		0.000		3248.338		6436.423		0.000		0.000		7200.000		47168.574		47168.574		27095.895
AFTER		0.000		1275.599		3037.033		0.000		0.000		0.000		8756.935		55925.516		28584.641
TOTAL		0.000		4523.937		9473.456		0.000		0.000		7200.000		55925.512		55925.516		28584.641

	OIL		GAS
GROSS WELLS		6.0		0.0
GROSS ULT., MB & MMF		1170.368		0.000
GROSS CUM., MB & MMF		18.716		0.000
GROSS RES., MB & MMF		1151.652		0.000
NET RES., MB & MMF		765.450		0.000
NET REVENUE, M$		77122.914		0.000
INITIAL PRICE, $		91.226		0.000
INITIAL N.I., PCT.		68.288		0.000

		P.W. %		P.W., M$
LIFE, YRS.	39.08		5.00		38405.715
DISCOUNT %	10.00		10.00		28584.639
UNDISCOUNTED PAYOUT, YRS.	1.20		12.00		25812.721
DISCOUNTED PAYOUT, YRS.	1.22		15.00		22451.340
UNDISCOUNTED NET/INVEST.	8.77		18.00		19793.141
DISCOUNTED NET/INVEST.	5.16		20.00		18313.295
RATE-OF-RETURN, PCT.	100.00		30.00		13140.178
INITIAL W.I., PCT.	78.232		60.00		6563.710
			80.00		4648.738
			100.00		3450.234

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 29

AMERICAN EAGLE ENERGY	DATE	: 03/09/2012
HARDY	TIME	: 12:17:26
TOTAL PDP	DBS	: MHA
	SETTINGS	: SETDATA
	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		38.546		0.000		26.355		0.000		91.830		0.000		2420.219		0.000		2420.219
12-2013		23.251		0.000		15.811		0.000		88.660		0.000		1401.836		0.000		1401.836
12-2014		17.626		0.000		11.970		0.000		85.760		0.000		1026.581		0.000		1026.581
12-2015		14.518		0.000		9.854		0.000		91.180		0.000		898.469		0.000		898.469
12-2016		12.499		0.000		8.481		0.000		93.130		0.000		789.799		0.000		789.799
12-2017		11.063		0.000		7.505		0.000		95.110		0.000		713.755		0.000		713.755
12-2018		9.980		0.000		6.769		0.000		97.140		0.000		657.500		0.000		657.500
12-2019		9.128		0.000		6.190		0.000		99.210		0.000		614.133		0.000		614.133
12-2020		8.438		0.000		5.722		0.000		101.320		0.000		579.709		0.000		579.709
12-2021		7.865		0.000		5.333		0.000		103.470		0.000		551.770		0.000		551.770
12-2022		7.380		0.000		5.004		0.000		105.664		0.000		528.720		0.000		528.720
12-2023		6.964		0.000		4.721		0.000		107.902		0.000		509.445		0.000		509.445
12-2024		6.602		0.000		4.475		0.000		110.185		0.000		493.115		0.000		493.115
12-2025		6.271		0.000		4.251		0.000		112.514		0.000		478.313		0.000		478.313
12-2026		5.957		0.000		4.039		0.000		114.889		0.000		463.989		0.000		463.989
S TOT		186.090		0.000		126.479		0.000		95.884		0.000		12127.352		0.000		12127.352
AFTER		69.561		0.000		45.258		0.000		141.798		0.000		6417.564		0.000		6417.564
TOTAL		255.651		0.000		171.738		0.000		107.984		0.000		18544.916		0.000		18544.916

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		0.000		0.000		267.699		0.000		0.000		0.000		2152.520		2152.520		2063.738
12-2013		0.000		0.000		132.987		0.000		0.000		0.000		1268.849		3421.368		3167.127
12-2014		0.000		0.000		124.934		0.000		0.000		0.000		901.648		4323.016		3879.279
12-2015		0.000		0.000		123.744		0.000		0.000		0.000		774.725		5097.741		4435.301
12-2016		0.000		0.000		124.134		0.000		0.000		0.000		665.664		5763.405		4869.499
12-2017		0.000		36.484		125.131		0.000		0.000		0.000		552.140		6315.544		5197.206
12-2018		0.000		51.414		126.503		0.000		0.000		0.000		479.582		6795.126		5455.659
12-2019		0.000		48.051		128.133		0.000		0.000		0.000		437.949		7233.075		5670.197
12-2020		0.000		45.378		129.954		0.000		0.000		0.000		404.376		7637.451		5850.268
12-2021		0.000		43.207		131.928		0.000		0.000		0.000		376.635		8014.085		6002.728
12-2022		0.000		41.414		134.028		0.000		0.000		0.000		353.278		8367.363		6132.727
12-2023		0.000		39.914		136.238		0.000		0.000		0.000		333.293		8700.656		6244.217
12-2024		0.000		38.642		138.546		0.000		0.000		0.000		315.926		9016.582		6340.288
12-2025		0.000		37.483		140.938		0.000		0.000		0.000		299.891		9316.473		6423.193
12-2026		0.000		36.361		143.400		0.000		0.000		0.000		284.229		9600.702		6494.626
S TOT		0.000		418.350		2108.300		0.000		0.000		0.000		9600.702		9600.702		6494.626
AFTER		0.000		610.399		2140.783		0.000		0.000		0.000		3666.383		13267.083		6923.949
TOTAL		0.000		1028.750		4249.083		0.000		0.000		0.000		13267.084		13267.083		6923.949

	OIL		GAS
GROSS WELLS		2.0		0.0
GROSS ULT., MB & MMF		274.367		0.000
GROSS CUM., MB & MMF		18.716		0.000
GROSS RES., MB & MMF		255.651		0.000
NET RES., MB & MMF		171.738		0.000
NET REVENUE, M$		18544.912		0.000
INITIAL PRICE, $		91.830		0.000
INITIAL N.I., PCT.		68.374		0.000

		P.W. %		P.W., M$
LIFE, YRS.	39.08		5.00		8900.073
DISCOUNT %	10.00		10.00		6923.950
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		6414.200
DISCOUNTED PAYOUT, YRS.	0.00		15.00		5816.630
UNDISCOUNTED NET/INVEST.	0.00		18.00		5355.525
DISCOUNTED NET/INVEST.	0.00		20.00		5101.468
RATE-OF-RETURN, PCT.	100.00		30.00		4213.291
INITIAL W.I., PCT.	80.482		60.00		3017.084
			80.00		2629.260
			100.00		2367.205

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 30

AMERICAN EAGLE ENERGY	DATE	: 03/09/2012
HARDY	TIME	: 12:17:26
TOTAL PUD	DBS	: MHA
	SETTINGS	: SETDATA
	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		30.361		0.000		19.469		0.000		91.830		0.000		1787.839		0.000		1787.839
12-2013		96.450		0.000		61.849		0.000		88.660		0.000		5483.492		0.000		5483.492
12-2014		70.245		0.000		45.045		0.000		85.760		0.000		3863.049		0.000		3863.049
12-2015		56.852		0.000		36.456		0.000		91.180		0.000		3324.090		0.000		3324.090
12-2016		48.461		0.000		31.076		0.000		93.130		0.000		2894.071		0.000		2894.071
12-2017		42.618		0.000		27.329		0.000		95.110		0.000		2599.225		0.000		2599.225
12-2018		38.271		0.000		24.542		0.000		97.140		0.000		2383.970		0.000		2383.970
12-2019		34.889		0.000		22.373		0.000		99.210		0.000		2219.577		0.000		2219.577
12-2020		32.168		0.000		20.628		0.000		101.320		0.000		2089.978		0.000		2089.978
12-2021		29.922		0.000		19.188		0.000		103.470		0.000		1985.344		0.000		1985.344
12-2022		28.032		0.000		17.976		0.000		105.664		0.000		1899.370		0.000		1899.370
12-2023		26.415		0.000		16.938		0.000		107.902		0.000		1827.700		0.000		1827.700
12-2024		25.012		0.000		16.039		0.000		110.185		0.000		1767.284		0.000		1767.284
12-2025		23.783		0.000		15.251		0.000		112.514		0.000		1715.902		0.000		1715.902
12-2026		22.694		0.000		14.552		0.000		114.889		0.000		1671.900		0.000		1671.900
S TOT		606.173		0.000		388.708		0.000		96.506		0.000		37512.789		0.000		37512.789
AFTER		65.828		0.000		42.212		0.000		120.005		0.000		5065.633		0.000		5065.633
TOTAL		672.000		0.000		430.920		0.000		98.808		0.000		42578.422		0.000		42578.422

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		0.000		0.000		85.119		0.000		0.000		7200.000		-5497.280		-5497.280		-5286.349
12-2013		0.000		0.000		273.333		0.000		0.000		0.000		5210.160		-287.121		-753.893
12-2014		0.000		0.000		239.237		0.000		0.000		0.000		3623.812		3336.692		2108.486
12-2015		0.000		0.000		223.211		0.000		0.000		0.000		3100.879		6437.571		4333.935
12-2016		0.000		37.214		214.277		0.000		0.000		0.000		2642.581		9080.152		6058.377
12-2017		0.000		244.277		208.982		0.000		0.000		0.000		2145.966		11226.118		7330.934
12-2018		0.000		238.397		205.851		0.000		0.000		0.000		1939.722		13165.840		8376.175
12-2019		0.000		221.958		204.135		0.000		0.000		0.000		1793.484		14959.324		9254.664
12-2020		0.000		208.998		203.410		0.000		0.000		0.000		1677.571		16636.895		10001.616
12-2021		0.000		198.534		203.416		0.000		0.000		0.000		1583.394		18220.287		10642.501
12-2022		0.000		189.937		203.984		0.000		0.000		0.000		1505.448		19725.736		11196.414
12-2023		0.000		182.770		205.001		0.000		0.000		0.000		1439.929		21165.666		11678.035
12-2024		0.000		176.728		206.386		0.000		0.000		0.000		1384.170		22549.836		12098.902
12-2025		0.000		171.590		208.081		0.000		0.000		0.000		1336.230		23886.066		12468.246
12-2026		0.000		167.190		210.043		0.000		0.000		0.000		1294.667		25180.734		12793.561
S TOT		0.000		2037.593		3094.465		0.000		0.000		7200.000		25180.734		25180.734		12793.561
AFTER		0.000		506.563		680.861		0.000		0.000		0.000		3878.209		29058.941		13596.288
TOTAL		0.000		2544.156		3775.326		0.000		0.000		7200.000		29058.941		29058.941		13596.288

	OIL		GAS
GROSS WELLS		3.0		0.0
GROSS ULT., MB & MMF		672.000		0.000
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		672.000		0.000
NET RES., MB & MMF		430.920		0.000
NET REVENUE, M$		42578.441		0.000
INITIAL PRICE, $		90.773		0.000
INITIAL N.I., PCT.		64.125		0.000

		P.W. %		P.W., M$
LIFE, YRS.	18.42		5.00		19355.814
DISCOUNT %	10.00		10.00		13596.288
UNDISCOUNTED PAYOUT, YRS.	2.08		12.00		11941.366
DISCOUNTED PAYOUT, YRS.	2.26		15.00		9924.422
UNDISCOUNTED NET/INVEST.	5.04		18.00		8325.996
DISCOUNTED NET/INVEST.	2.98		20.00		7436.622
RATE-OF-RETURN, PCT.	69.56		30.00		4347.397
INITIAL W.I., PCT.	75.000		60.00		560.836
			80.00		-466.280
			100.00		-1071.099

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 31

AMERICAN EAGLE ENERGY	DATE	: 03/09/2012
HARDY	TIME	: 12:17:26
TOTAL POSSIBLE	DBS	: MHA
	SETTINGS	: SETDATA
	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		28.046		0.000		20.383		0.000		91.830		0.000		1871.741		0.000		1871.741
12-2013		26.771		0.000		19.456		0.000		88.660		0.000		1724.982		0.000		1724.982
12-2014		20.838		0.000		15.144		0.000		85.760		0.000		1298.770		0.000		1298.770
12-2015		17.389		0.000		12.638		0.000		91.180		0.000		1152.299		0.000		1152.299
12-2016		15.089		0.000		10.966		0.000		93.130		0.000		1021.224		0.000		1021.224
12-2017		13.425		0.000		9.756		0.000		95.110		0.000		927.932		0.000		927.932
12-2018		12.155		0.000		8.834		0.000		97.140		0.000		858.125		0.000		858.125
12-2019		11.149		0.000		8.103		0.000		99.210		0.000		803.869		0.000		803.869
12-2020		10.329		0.000		7.506		0.000		101.320		0.000		760.537		0.000		760.537
12-2021		9.644		0.000		7.009		0.000		103.470		0.000		725.202		0.000		725.202
12-2022		9.063		0.000		6.586		0.000		105.664		0.000		695.945		0.000		695.945
12-2023		8.562		0.000		6.222		0.000		107.902		0.000		671.407		0.000		671.407
12-2024		8.125		0.000		5.905		0.000		110.185		0.000		650.624		0.000		650.624
12-2025		7.740		0.000		5.625		0.000		112.514		0.000		632.882		0.000		632.882
12-2026		7.397		0.000		5.376		0.000		114.889		0.000		617.645		0.000		617.645
S TOT		205.723		0.000		149.509		0.000		96.404		0.000		14413.185		0.000		14413.185
AFTER		18.278		0.000		13.283		0.000		119.427		0.000		1586.371		0.000		1586.371
TOTAL		224.000		0.000		162.792		0.000		98.282		0.000		15999.556		0.000		15999.556

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		0.000		0.000		119.523		0.000		0.000		0.000		1752.218		1752.218		1654.308
12-2013		0.000		0.000		94.687		0.000		0.000		0.000		1630.295		3382.513		3071.418
12-2014		0.000		0.000		86.271		0.000		0.000		0.000		1212.498		4595.012		4028.836
12-2015		0.000		0.000		81.836		0.000		0.000		0.000		1070.463		5665.475		4796.954
12-2016		0.000		57.977		79.251		0.000		0.000		0.000		883.996		6549.471		5374.246
12-2017		0.000		92.793		77.704		0.000		0.000		0.000		757.435		7306.905		5823.241
12-2018		0.000		85.813		76.807		0.000		0.000		0.000		695.506		8002.412		6198.001
12-2019		0.000		80.387		76.352		0.000		0.000		0.000		647.130		8649.542		6514.966
12-2020		0.000		76.054		76.216		0.000		0.000		0.000		608.267		9257.809		6785.793
12-2021		0.000		72.520		76.320		0.000		0.000		0.000		576.362		9834.171		7019.071
12-2022		0.000		69.594		76.613		0.000		0.000		0.000		549.738		10383.909		7221.337
12-2023		0.000		67.141		77.058		0.000		0.000		0.000		527.209		10911.118		7397.672
12-2024		0.000		65.062		77.629		0.000		0.000		0.000		507.932		11419.050		7552.110
12-2025		0.000		63.288		78.309		0.000		0.000		0.000		491.285		11910.335		7687.903
12-2026		0.000		61.765		79.083		0.000		0.000		0.000		476.798		12387.133		7807.708
S TOT		0.000		792.394		1233.659		0.000		0.000		0.000		12387.133		12387.133		7807.708
AFTER		0.000		158.637		215.389		0.000		0.000		0.000		1212.344		13599.478		8064.399
TOTAL		0.000		951.031		1449.048		0.000		0.000		0.000		13599.477		13599.478		8064.399

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		224.000		0.000
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		224.000		0.000
NET RES., MB & MMF		162.792		0.000
NET REVENUE, M$		15999.558		0.000
INITIAL PRICE, $		91.830		0.000
INITIAL N.I., PCT.		72.675		0.000

		P.W. %		P.W., M$
LIFE, YRS.	17.67		5.00		10149.829
DISCOUNT %	10.00		10.00		8064.399
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		7457.154
DISCOUNTED PAYOUT, YRS.	0.00		15.00		6710.288
UNDISCOUNTED NET/INVEST.	0.00		18.00		6111.618
DISCOUNTED NET/INVEST.	0.00		20.00		5775.204
RATE-OF-RETURN, PCT.	100.00		30.00		4579.491
INITIAL W.I., PCT.	85.000		60.00		2985.789
			80.00		2485.758
			100.00		2154.128

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 32

Hardy 4-16	DATE	: 03/09/2012
4N 21W 16	TIME	: 12:18:43
1PDP	DBS	: MHA
	SETTINGS	: SETDATA
	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		30.884		0.000		19.804		0.000		91.830		0.000		1818.617		0.000		1818.617
12-2013		19.034		0.000		12.206		0.000		88.660		0.000		1082.165		0.000		1082.165
12-2014		14.502		0.000		9.299		0.000		85.760		0.000		797.523		0.000		797.523
12-2015		11.973		0.000		7.678		0.000		91.180		0.000		700.047		0.000		700.047
12-2016		10.322		0.000		6.619		0.000		93.130		0.000		616.424		0.000		616.424
12-2017		9.144		0.000		5.864		0.000		95.110		0.000		557.695		0.000		557.695
12-2018		8.254		0.000		5.293		0.000		97.140		0.000		514.144		0.000		514.144
12-2019		7.553		0.000		4.843		0.000		99.210		0.000		480.514		0.000		480.514
12-2020		6.984		0.000		4.479		0.000		101.320		0.000		453.785		0.000		453.785
12-2021		6.512		0.000		4.176		0.000		103.470		0.000		432.070		0.000		432.070
12-2022		6.112		0.000		3.919		0.000		105.664		0.000		414.143		0.000		414.143
12-2023		5.769		0.000		3.699		0.000		107.902		0.000		399.142		0.000		399.142
12-2024		5.469		0.000		3.507		0.000		110.185		0.000		386.421		0.000		386.421
12-2025		5.195		0.000		3.331		0.000		112.514		0.000		374.834		0.000		374.834
12-2026		4.935		0.000		3.165		0.000		114.889		0.000		363.609		0.000		363.609
S TOT		152.643		0.000		97.882		0.000		95.943		0.000		9391.131		0.000		9391.131
AFTER		66.510		0.000		42.650		0.000		143.120		0.000		6103.992		0.000		6103.992
TOTAL		219.153		0.000		140.532		0.000		110.261		0.000		15495.122		0.000		15495.122

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		0.000		0.000		113.088		0.000		0.000		0.000		1705.528		1705.528		1634.839
12-2013		0.000		0.000		50.717		0.000		0.000		0.000		1031.449		2736.977		2531.618
12-2014		0.000		0.000		47.243		0.000		0.000		0.000		750.279		3487.257		3124.134
12-2015		0.000		0.000		47.754		0.000		0.000		0.000		652.292		4139.549		3592.235
12-2016		0.000		0.000		48.709		0.000		0.000		0.000		567.715		4707.264		3962.505
12-2017		0.000		36.484		49.684		0.000		0.000		0.000		471.527		5178.791		4242.391
12-2018		0.000		51.414		50.677		0.000		0.000		0.000		412.052		5590.843		4464.429
12-2019		0.000		48.051		51.691		0.000		0.000		0.000		380.771		5971.614		4650.940
12-2020		0.000		45.378		52.725		0.000		0.000		0.000		355.681		6327.296		4809.312
12-2021		0.000		43.207		53.779		0.000		0.000		0.000		335.084		6662.380		4944.940
12-2022		0.000		41.414		54.855		0.000		0.000		0.000		317.874		6980.254		5061.900
12-2023		0.000		39.914		55.952		0.000		0.000		0.000		303.276		7283.530		5163.340
12-2024		0.000		38.642		57.071		0.000		0.000		0.000		290.708		7574.237		5251.734
12-2025		0.000		37.483		58.212		0.000		0.000		0.000		279.138		7853.375		5328.895
12-2026		0.000		36.361		59.377		0.000		0.000		0.000		267.871		8121.247		5396.209
S TOT		0.000		418.350		851.534		0.000		0.000		0.000		8121.247		8121.247		5396.209
AFTER		0.000		610.399		1850.589		0.000		0.000		0.000		3643.003		11764.249		5820.479
TOTAL		0.000		1028.750		2702.123		0.000		0.000		0.000		11764.250		11764.249		5820.479

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		228.778		0.000
GROSS CUM., MB & MMF		9.625		0.000
GROSS RES., MB & MMF		219.153		0.000
NET RES., MB & MMF		140.532		0.000
NET REVENUE, M$		15495.119		0.000
INITIAL PRICE, $		91.830		0.000
INITIAL N.I., PCT.		64.125		0.000

		P.W. %		P.W., M$
LIFE, YRS.	39.08		5.00		7634.618
DISCOUNT %	10.00		10.00		5820.479
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		5361.707
DISCOUNTED PAYOUT, YRS.	0.00		15.00		4829.845
UNDISCOUNTED NET/INVEST.	0.00		18.00		4424.196
DISCOUNTED NET/INVEST.	0.00		20.00		4202.542
RATE-OF-RETURN, PCT.	100.00		30.00		3438.060
INITIAL W.I., PCT.	75.000		60.00		2432.310
			80.00		2111.430
			100.00		1895.954

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 33

Hardy 7-9	DATE	: 03/09/2012
4N 21W 9	TIME	: 12:18:43
1PDP	DBS	: MHA
	SETTINGS	: SETDATA
	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		7.662		0.000		6.551		0.000		91.830		0.000		601.602		0.000		601.602
12-2013		4.217		0.000		3.606		0.000		88.660		0.000		319.670		0.000		319.670
12-2014		3.124		0.000		2.671		0.000		85.760		0.000		229.059		0.000		229.059
12-2015		2.545		0.000		2.176		0.000		91.180		0.000		198.422		0.000		198.422
12-2016		2.177		0.000		1.862		0.000		93.130		0.000		173.374		0.000		173.374
12-2017		1.919		0.000		1.641		0.000		95.110		0.000		156.060		0.000		156.060
12-2018		1.726		0.000		1.476		0.000		97.140		0.000		143.356		0.000		143.356
12-2019		1.575		0.000		1.347		0.000		99.210		0.000		133.619		0.000		133.619
12-2020		1.454		0.000		1.243		0.000		101.320		0.000		125.924		0.000		125.924
12-2021		1.353		0.000		1.157		0.000		103.470		0.000		119.700		0.000		119.700
12-2022		1.268		0.000		1.084		0.000		105.664		0.000		114.578		0.000		114.578
12-2023		1.196		0.000		1.022		0.000		107.902		0.000		110.303		0.000		110.303
12-2024		1.133		0.000		0.968		0.000		110.185		0.000		106.694		0.000		106.694
12-2025		1.076		0.000		0.920		0.000		112.514		0.000		103.480		0.000		103.480
12-2026		1.022		0.000		0.874		0.000		114.889		0.000		100.381		0.000		100.381
S TOT		33.447		0.000		28.597		0.000		95.682		0.000		2736.221		0.000		2736.221
AFTER		3.051		0.000		2.609		0.000		120.191		0.000		313.573		0.000		313.573
TOTAL		36.498		0.000		31.206		0.000		97.731		0.000		3049.794		0.000		3049.794

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		0.000		0.000		154.611		0.000		0.000		0.000		446.991		446.991		428.899
12-2013		0.000		0.000		82.270		0.000		0.000		0.000		237.400		684.391		635.509
12-2014		0.000		0.000		77.691		0.000		0.000		0.000		151.368		835.759		755.145
12-2015		0.000		0.000		75.990		0.000		0.000		0.000		122.432		958.191		843.066
12-2016		0.000		0.000		75.425		0.000		0.000		0.000		97.950		1056.141		906.993
12-2017		0.000		0.000		75.448		0.000		0.000		0.000		80.613		1136.754		954.815
12-2018		0.000		0.000		75.826		0.000		0.000		0.000		67.530		1204.283		991.229
12-2019		0.000		0.000		76.442		0.000		0.000		0.000		57.177		1261.461		1019.257
12-2020		0.000		0.000		77.230		0.000		0.000		0.000		48.694		1310.155		1040.956
12-2021		0.000		0.000		78.149		0.000		0.000		0.000		41.551		1351.706		1057.788
12-2022		0.000		0.000		79.174		0.000		0.000		0.000		35.404		1387.110		1070.827
12-2023		0.000		0.000		80.286		0.000		0.000		0.000		30.016		1417.126		1080.877
12-2024		0.000		0.000		81.475		0.000		0.000		0.000		25.219		1442.345		1088.554
12-2025		0.000		0.000		82.726		0.000		0.000		0.000		20.753		1463.098		1094.299
12-2026		0.000		0.000		84.023		0.000		0.000		0.000		16.358		1479.456		1098.417
S TOT		0.000		0.000		1256.766		0.000		0.000		0.000		1479.456		1479.456		1098.417
AFTER		0.000		0.000		290.194		0.000		0.000		0.000		23.379		1502.835		1103.470
TOTAL		0.000		0.000		1546.959		0.000		0.000		0.000		1502.835		1502.835		1103.470

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		45.589		0.000
GROSS CUM., MB & MMF		9.091		0.000
GROSS RES., MB & MMF		36.498		0.000
NET RES., MB & MMF		31.206		0.000
NET REVENUE, M$		3049.794		0.000
INITIAL PRICE, $		91.830		0.000
INITIAL N.I., PCT.		85.500		0.000

		P.W. %		P.W., M$
LIFE, YRS.	18.33		5.00		1265.455
DISCOUNT %	10.00		10.00		1103.471
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		1052.493
DISCOUNTED PAYOUT, YRS.	0.00		15.00		986.785
UNDISCOUNTED NET/INVEST.	0.00		18.00		931.329
DISCOUNTED NET/INVEST.	0.00		20.00		898.926
RATE-OF-RETURN, PCT.	100.00		30.00		775.231
INITIAL W.I., PCT.	100.000		60.00		584.775
			80.00		517.830
			100.00		471.251

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 34

PUD SEC16-4-21W2	DATE	: 03/09/2012
4N 21W 16	TIME	: 12:18:43
4PUD	DBS	: MHA
	SETTINGS	: SETDATA
	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		10.565		0.000		6.775		0.000		91.830		0.000		622.153		0.000		622.153
12-2013		31.870		0.000		20.437		0.000		88.660		0.000		1811.900		0.000		1811.900
12-2014		23.339		0.000		14.966		0.000		85.760		0.000		1283.512		0.000		1283.512
12-2015		18.918		0.000		12.131		0.000		91.180		0.000		1106.149		0.000		1106.149
12-2016		16.137		0.000		10.348		0.000		93.130		0.000		963.681		0.000		963.681
12-2017		14.196		0.000		9.103		0.000		95.110		0.000		865.793		0.000		865.793
12-2018		12.751		0.000		8.176		0.000		97.140		0.000		794.249		0.000		794.249
12-2019		11.625		0.000		7.455		0.000		99.210		0.000		739.572		0.000		739.572
12-2020		10.719		0.000		6.874		0.000		101.320		0.000		696.448		0.000		696.448
12-2021		9.972		0.000		6.394		0.000		103.470		0.000		661.619		0.000		661.619
12-2022		9.342		0.000		5.991		0.000		105.664		0.000		632.996		0.000		632.996
12-2023		8.803		0.000		5.645		0.000		107.902		0.000		609.131		0.000		609.131
12-2024		8.336		0.000		5.346		0.000		110.185		0.000		589.010		0.000		589.010
12-2025		7.927		0.000		5.083		0.000		112.514		0.000		571.897		0.000		571.897
12-2026		7.564		0.000		4.850		0.000		114.889		0.000		557.240		0.000		557.240
S TOT		202.064		0.000		129.574		0.000		96.511		0.000		12505.350		0.000		12505.350
AFTER		21.936		0.000		14.066		0.000		119.981		0.000		1687.698		0.000		1687.698
TOTAL		224.000		0.000		143.640		0.000		98.810		0.000		14193.048		0.000		14193.048

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		0.000		0.000		26.108		0.000		0.000		2400.000		-1803.954		-1803.954		-1739.798
12-2013		0.000		0.000		90.717		0.000		0.000		0.000		1721.183		-82.771		-242.617
12-2014		0.000		0.000		79.639		0.000		0.000		0.000		1203.873		1121.102		708.281
12-2015		0.000		0.000		74.358		0.000		0.000		0.000		1031.791		2152.892		1448.774
12-2016		0.000		7.536		71.402		0.000		0.000		0.000		884.743		3037.635		2026.052
12-2017		0.000		86.579		69.647		0.000		0.000		0.000		709.568		3747.202		2446.705
12-2018		0.000		79.425		68.608		0.000		0.000		0.000		646.216		4393.418		2794.925
12-2019		0.000		73.957		68.039		0.000		0.000		0.000		597.576		4990.995		3087.631
12-2020		0.000		69.645		67.799		0.000		0.000		0.000		559.004		5549.999		3336.532
12-2021		0.000		66.162		67.802		0.000		0.000		0.000		527.656		6077.654		3550.103
12-2022		0.000		63.300		67.992		0.000		0.000		0.000		501.704		6579.358		3734.699
12-2023		0.000		60.913		68.332		0.000		0.000		0.000		479.886		7059.244		3895.209
12-2024		0.000		58.901		68.794		0.000		0.000		0.000		461.316		7520.560		4035.476
12-2025		0.000		57.190		69.359		0.000		0.000		0.000		445.348		7965.909		4158.573
12-2026		0.000		55.724		70.013		0.000		0.000		0.000		431.503		8397.412		4266.999
S TOT		0.000		679.332		1028.607		0.000		0.000		2400.000		8397.412		8397.412		4266.999
AFTER		0.000		168.770		226.909		0.000		0.000		0.000		1292.019		9689.431		4534.582
TOTAL		0.000		848.102		1255.516		0.000		0.000		2400.000		9689.430		9689.431		4534.582

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		224.000		0.000
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		224.000		0.000
NET RES., MB & MMF		143.640		0.000
NET REVENUE, M$		14193.053		0.000
INITIAL PRICE, $		91.830		0.000
INITIAL N.I., PCT.		64.125		0.000

		P.W. %		P.W., M$
LIFE, YRS.	18.17		5.00		6454.949
DISCOUNT %	10.00		10.00		4534.582
UNDISCOUNTED PAYOUT, YRS.	2.07		12.00		3982.712
DISCOUNTED PAYOUT, YRS.	2.26		15.00		3310.070
UNDISCOUNTED NET/INVEST.	5.04		18.00		2776.966
DISCOUNTED NET/INVEST.	2.98		20.00		2480.333
RATE-OF-RETURN, PCT.	69.67		30.00		1450.005
INITIAL W.I., PCT.	75.000		60.00		188.447
			80.00		-152.245
			100.00		-351.645

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 35

PUD SEC16-4-21W2 W2	DATE	: 03/09/2012
4N 21W 16	TIME	: 12:18:43
4PUD	DBS	: MHA
	SETTINGS	: SETDATA
	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		0.000		0.000		0.000		0.000		0.000		0.000		0.000		0.000		0.000
12-2013		35.542		0.000		22.791		0.000		88.660		0.000		2020.686		0.000		2020.686
12-2014		24.907		0.000		15.971		0.000		85.760		0.000		1369.703		0.000		1369.703
12-2015		19.820		0.000		12.710		0.000		91.180		0.000		1158.865		0.000		1158.865
12-2016		16.734		0.000		10.730		0.000		93.130		0.000		999.327		0.000		999.327
12-2017		14.625		0.000		9.378		0.000		95.110		0.000		891.976		0.000		891.976
12-2018		13.077		0.000		8.385		0.000		97.140		0.000		814.567		0.000		814.567
12-2019		11.883		0.000		7.620		0.000		99.210		0.000		755.967		0.000		755.967
12-2020		10.929		0.000		7.008		0.000		101.320		0.000		710.071		0.000		710.071
12-2021		10.146		0.000		6.506		0.000		103.470		0.000		673.200		0.000		673.200
12-2022		9.490		0.000		6.086		0.000		105.664		0.000		643.021		0.000		643.021
12-2023		8.931		0.000		5.727		0.000		107.902		0.000		617.940		0.000		617.940
12-2024		8.447		0.000		5.417		0.000		110.185		0.000		596.848		0.000		596.848
12-2025		8.024		0.000		5.146		0.000		112.514		0.000		578.944		0.000		578.944
12-2026		7.651		0.000		4.906		0.000		114.889		0.000		563.634		0.000		563.634
S TOT		200.205		0.000		128.382		0.000		96.546		0.000		12394.748		0.000		12394.748
AFTER		23.795		0.000		15.259		0.000		120.317		0.000		1835.861		0.000		1835.861
TOTAL		224.000		0.000		143.640		0.000		99.071		0.000		14230.609		0.000		14230.609

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		0.000		0.000		0.000		0.000		0.000		2400.000		-2400.000		-2400.000		-2234.430
12-2013		0.000		0.000		95.881		0.000		0.000		0.000		1924.806		-475.194		-559.208
12-2014		0.000		0.000		81.843		0.000		0.000		0.000		1287.860		812.666		458.232
12-2015		0.000		0.000		75.626		0.000		0.000		0.000		1083.238		1895.904		1235.729
12-2016		0.000		0.000		72.241		0.000		0.000		0.000		927.086		2822.990		1840.446
12-2017		0.000		73.552		70.250		0.000		0.000		0.000		748.173		3571.163		2284.366
12-2018		0.000		81.457		69.067		0.000		0.000		0.000		664.043		4235.207		2642.204
12-2019		0.000		75.597		68.401		0.000		0.000		0.000		611.969		4847.176		2941.967
12-2020		0.000		71.007		68.094		0.000		0.000		0.000		570.970		5418.146		3196.200
12-2021		0.000		67.320		68.047		0.000		0.000		0.000		537.833		5955.979		3413.894
12-2022		0.000		64.302		68.200		0.000		0.000		0.000		510.519		6466.499		3601.736
12-2023		0.000		61.794		68.511		0.000		0.000		0.000		487.636		6954.134		3764.839
12-2024		0.000		59.685		68.950		0.000		0.000		0.000		468.214		7422.348		3907.205
12-2025		0.000		57.894		69.496		0.000		0.000		0.000		451.553		7873.900		4032.018
12-2026		0.000		56.363		70.135		0.000		0.000		0.000		437.135		8311.035		4141.859
S TOT		0.000		668.971		1014.742		0.000		0.000		2400.000		8311.035		8311.035		4141.859
AFTER		0.000		183.586		245.591		0.000		0.000		0.000		1406.683		9717.718		4430.004
TOTAL		0.000		852.557		1260.334		0.000		0.000		2400.000		9717.719		9717.718		4430.004

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		224.000		0.000
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		224.000		0.000
NET RES., MB & MMF		143.640		0.000
NET REVENUE, M$		14230.617		0.000
INITIAL PRICE, $		88.660		0.000
INITIAL N.I., PCT.		64.125		0.000

		P.W. %		P.W., M$
LIFE, YRS.	18.42		5.00		6388.208
DISCOUNT %	10.00		10.00		4430.004
UNDISCOUNTED PAYOUT, YRS.	2.37		12.00		3871.125
DISCOUNTED PAYOUT, YRS.	2.55		15.00		3193.141
UNDISCOUNTED NET/INVEST.	5.05		18.00		2658.947
DISCOUNTED NET/INVEST.	2.98		20.00		2363.213
RATE-OF-RETURN, PCT.	69.01		30.00		1347.941
INITIAL W.I., PCT.	75.000		60.00		155.806
			80.00		-142.602
			100.00		-306.044

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 36

PUD SEC9-4-21W2	DATE	: 03/09/2012
4N 21W 9	TIME	: 12:18:43
4PUD	DBS	: MHA
	SETTINGS	: SETDATA
	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		19.796		0.000		12.694		0.000		91.830		0.000		1165.686		0.000		1165.686
12-2013		29.038		0.000		18.621		0.000		88.660		0.000		1650.905		0.000		1650.905
12-2014		22.000		0.000		14.107		0.000		85.760		0.000		1209.834		0.000		1209.834
12-2015		18.113		0.000		11.615		0.000		91.180		0.000		1059.077		0.000		1059.077
12-2016		15.591		0.000		9.997		0.000		93.130		0.000		931.063		0.000		931.063
12-2017		13.797		0.000		8.847		0.000		95.110		0.000		841.456		0.000		841.456
12-2018		12.444		0.000		7.980		0.000		97.140		0.000		775.154		0.000		775.154
12-2019		11.381		0.000		7.298		0.000		99.210		0.000		724.038		0.000		724.038
12-2020		10.519		0.000		6.746		0.000		101.320		0.000		683.460		0.000		683.460
12-2021		9.804		0.000		6.287		0.000		103.470		0.000		650.525		0.000		650.525
12-2022		9.200		0.000		5.899		0.000		105.664		0.000		623.353		0.000		623.353
12-2023		8.681		0.000		5.566		0.000		107.902		0.000		600.629		0.000		600.629
12-2024		8.229		0.000		5.277		0.000		110.185		0.000		581.425		0.000		581.425
12-2025		7.832		0.000		5.022		0.000		112.514		0.000		565.061		0.000		565.061
12-2026		7.479		0.000		4.796		0.000		114.889		0.000		551.026		0.000		551.026
S TOT		203.903		0.000		130.753		0.000		96.462		0.000		12612.693		0.000		12612.693
AFTER		20.097		0.000		12.887		0.000		119.661		0.000		1542.075		0.000		1542.075
TOTAL		224.000		0.000		143.640		0.000		98.543		0.000		14154.768		0.000		14154.768

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		0.000		0.000		59.011		0.000		0.000		2400.000		-1293.325		-1293.325		-1312.121
12-2013		0.000		0.000		86.735		0.000		0.000		0.000		1564.171		270.845		47.932
12-2014		0.000		0.000		77.755		0.000		0.000		0.000		1132.079		1402.924		941.974
12-2015		0.000		0.000		73.226		0.000		0.000		0.000		985.850		2388.774		1649.433
12-2016		0.000		29.677		70.634		0.000		0.000		0.000		830.752		3219.527		2191.879
12-2017		0.000		84.146		69.085		0.000		0.000		0.000		688.225		3907.752		2599.864
12-2018		0.000		77.515		68.177		0.000		0.000		0.000		629.462		4537.214		2939.046
12-2019		0.000		72.404		67.695		0.000		0.000		0.000		583.939		5121.153		3225.066
12-2020		0.000		68.346		67.518		0.000		0.000		0.000		547.596		5668.750		3468.884
12-2021		0.000		65.052		67.567		0.000		0.000		0.000		517.906		6186.655		3678.505
12-2022		0.000		62.335		67.792		0.000		0.000		0.000		493.225		6679.880		3859.979
12-2023		0.000		60.063		68.159		0.000		0.000		0.000		472.408		7152.288		4017.987
12-2024		0.000		58.143		68.643		0.000		0.000		0.000		454.640		7606.928		4156.223
12-2025		0.000		56.506		69.226		0.000		0.000		0.000		439.329		8046.257		4277.655
12-2026		0.000		55.103		69.894		0.000		0.000		0.000		426.029		8472.286		4384.704
S TOT		0.000		689.290		1051.116		0.000		0.000		2400.000		8472.286		8472.286		4384.704
AFTER		0.000		154.208		208.361		0.000		0.000		0.000		1179.507		9651.792		4631.702
TOTAL		0.000		843.497		1259.476		0.000		0.000		2400.000		9651.793		9651.792		4631.702

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		224.000		0.000
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		224.000		0.000
NET RES., MB & MMF		143.640		0.000
NET REVENUE, M$		14154.770		0.000
INITIAL PRICE, $		91.830		0.000
INITIAL N.I., PCT.		64.125		0.000

		P.W. %		P.W., M$
LIFE, YRS.	17.92		5.00		6512.659
DISCOUNT %	10.00		10.00		4631.702
UNDISCOUNTED PAYOUT, YRS.	1.83		12.00		4087.528
DISCOUNTED PAYOUT, YRS.	1.96		15.00		3421.211
UNDISCOUNTED NET/INVEST.	5.02		18.00		2890.084
DISCOUNTED NET/INVEST.	2.98		20.00		2593.076
RATE-OF-RETURN, PCT.	69.89		30.00		1549.451
INITIAL W.I., PCT.	75.000		60.00		216.583
			80.00		-171.433
			100.00		-413.410

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 37

Hardy 14-17	DATE	: 03/09/2012
4N 21W 17	TIME	: 12:18:43
6POS	DBS	: MHA
	SETTINGS	: SETDATA
	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		28.046		0.000		20.383		0.000		91.830		0.000		1871.741		0.000		1871.741
12-2013		26.771		0.000		19.456		0.000		88.660		0.000		1724.982		0.000		1724.982
12-2014		20.838		0.000		15.144		0.000		85.760		0.000		1298.770		0.000		1298.770
12-2015		17.389		0.000		12.638		0.000		91.180		0.000		1152.299		0.000		1152.299
12-2016		15.089		0.000		10.966		0.000		93.130		0.000		1021.224		0.000		1021.224
12-2017		13.425		0.000		9.756		0.000		95.110		0.000		927.932		0.000		927.932
12-2018		12.155		0.000		8.834		0.000		97.140		0.000		858.125		0.000		858.125
12-2019		11.149		0.000		8.103		0.000		99.210		0.000		803.869		0.000		803.869
12-2020		10.329		0.000		7.506		0.000		101.320		0.000		760.537		0.000		760.537
12-2021		9.644		0.000		7.009		0.000		103.470		0.000		725.202		0.000		725.202
12-2022		9.063		0.000		6.586		0.000		105.664		0.000		695.945		0.000		695.945
12-2023		8.562		0.000		6.222		0.000		107.902		0.000		671.407		0.000		671.407
12-2024		8.125		0.000		5.905		0.000		110.185		0.000		650.624		0.000		650.624
12-2025		7.740		0.000		5.625		0.000		112.514		0.000		632.882		0.000		632.882
12-2026		7.397		0.000		5.376		0.000		114.889		0.000		617.645		0.000		617.645
S TOT		205.723		0.000		149.509		0.000		96.404		0.000		14413.185		0.000		14413.185
AFTER		18.278		0.000		13.283		0.000		119.427		0.000		1586.371		0.000		1586.371
TOTAL		224.000		0.000		162.792		0.000		98.282		0.000		15999.556		0.000		15999.556

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		0.000		0.000		119.523		0.000		0.000		0.000		1752.218		1752.218		1654.308
12-2013		0.000		0.000		94.687		0.000		0.000		0.000		1630.295		3382.513		3071.418
12-2014		0.000		0.000		86.271		0.000		0.000		0.000		1212.498		4595.012		4028.836
12-2015		0.000		0.000		81.836		0.000		0.000		0.000		1070.463		5665.475		4796.954
12-2016		0.000		57.977		79.251		0.000		0.000		0.000		883.996		6549.471		5374.246
12-2017		0.000		92.793		77.704		0.000		0.000		0.000		757.435		7306.905		5823.241
12-2018		0.000		85.813		76.807		0.000		0.000		0.000		695.506		8002.412		6198.001
12-2019		0.000		80.387		76.352		0.000		0.000		0.000		647.130		8649.542		6514.966
12-2020		0.000		76.054		76.216		0.000		0.000		0.000		608.267		9257.809		6785.793
12-2021		0.000		72.520		76.320		0.000		0.000		0.000		576.362		9834.171		7019.071
12-2022		0.000		69.594		76.613		0.000		0.000		0.000		549.738		10383.909		7221.337
12-2023		0.000		67.141		77.058		0.000		0.000		0.000		527.209		10911.118		7397.672
12-2024		0.000		65.062		77.629		0.000		0.000		0.000		507.932		11419.050		7552.110
12-2025		0.000		63.288		78.309		0.000		0.000		0.000		491.285		11910.335		7687.903
12-2026		0.000		61.765		79.083		0.000		0.000		0.000		476.798		12387.133		7807.708
S TOT		0.000		792.394		1233.659		0.000		0.000		0.000		12387.133		12387.133		7807.708
AFTER		0.000		158.637		215.389		0.000		0.000		0.000		1212.344		13599.478		8064.399
TOTAL		0.000		951.031		1449.048		0.000		0.000		0.000		13599.477		13599.478		8064.399

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		224.000		0.000
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		224.000		0.000
NET RES., MB & MMF		162.792		0.000
NET REVENUE, M$		15999.558		0.000
INITIAL PRICE, $		91.830		0.000
INITIAL N.I., PCT.		72.675		0.000

		P.W. %		P.W., M$
LIFE, YRS.	17.67		5.00		10149.829
DISCOUNT %	10.00		10.00		8064.399
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		7457.154
DISCOUNTED PAYOUT, YRS.	0.00		15.00		6710.288
UNDISCOUNTED NET/INVEST.	0.00		18.00		6111.618
DISCOUNTED NET/INVEST.	0.00		20.00		5775.204
RATE-OF-RETURN, PCT.	100.00		30.00		4579.491
INITIAL W.I., PCT.	85.000		60.00		2985.789
			80.00		2485.758

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
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Spyglass Area

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March 15, 2012
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March 15, 2012
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March 15, 2012
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March 15, 2012
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MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 48

Spyglass Area

SEC Pricing

American Eagle Energy

Reserves and Economics

Spyglass

SEC Pricing Effective 01/2012

																	Net				Operating						Discounted
Reserve									Gross Oil		Gross Gas		Net Oil		Net Gas		Revenue				Expense		Investment		Un-discounted		NCF @ 10%
Cat	Well	Life		WI (%)		NRI (%)		Start	(Mbbl)		(MMCF)		(Mbbl)		(MMCF)		(M$)		Taxes (M$)		(M$)		(M$)		NCF (M$)		(M$)
1PDP	Bagley 4-30 H		46.8		3.87217		3.04970	01/2012		536.1		329.6		16.4		10.1		1,446.9		160.1		159.4		0.0		1,127.3		597.6
1PDP	Gerhardsen 1-10H		50.0		2.36907		1.89526	12/2011		474.5		240.0		9.0		4.5		792.5		87.9		101.0		0.0		603.6		287.1
1PDP	Legaard 4-25H		50.0		3.68594		2.91963	01/2012		432.1		224.6		12.6		6.6		1,112.4		123.3		155.0		0.0		834.1		423.5
1PDP	Mustang 7-6		50.0		0.32410		0.25928	01/2012		482.4		250.1		1.3		0.6		110.3		12.2		13.9		0.0		84.2		41.2
1PDP	Nielsen 1-12H		30.1		0.45697		0.36557	12/2011		150.1		94.7		0.5		0.3		48.6		5.4		10.9		0.0		32.3		19.8
1PDP	Riede 4-14H		39.6		0.34247		0.25594	01/2012		346.8		219.8		0.9		0.6		78.6		8.7		11.4		0.0		58.5		33.8
1PDP	Rostad 9-33H		19.6		0.62500		0.50000	12/2011		69.0		108.7		0.3		0.5		31.6		3.5		12.6		0.0		15.6		10.5
1PDP	Torgeson 1-15 H		50.0		4.37539		3.47689	01/2012		612.0		316.0		21.3		11.0		1,876.1		208.0		195.0		0.0		1,473.1		688.7
1PDP	Wolter 1-28H		48.1		1.29766		1.03813	01/2012		574.1		344.2		6.0		3.6		527.1		58.4		54.2		0.0		414.5		216.5
1PDP	Wolter 13-9 H		50.0		5.91941		4.64919	01/2012		487.7		340.5		22.7		15.8		2,012.9		222.5		253.5		0.0		1,536.8		774.0
	TOTAL PDP									4,164.8		2,468.2		90.9		53.7		8,037.0		889.9		966.9		0.0		6,180.2		3,092.7
2PNP	Thomte 8-5		50.0		3.17928		2.49573	03/2012		482.1		250.1		12.0		6.2		1,061.0		117.6		135.5		12.7		795.1		377.1
	TOTAL PNP									482.1		250.1		12.0		6.2		1,061.0		117.6		135.5		12.7		795.1		377.1
4PUD	Blazer 2-11		50.0		0.93777		0.75022	04/2012		482.0		250.1		3.6		1.9		318.8		35.3		39.9		3.8		239.8		112.7
4PUD	CHRISTIANSON		50.0		35.49470		28.26233	04/2012		630.6		336.6		178.2		95.1		15,724.2		1,742.6		1,584.8		2,768.6		9,628.2		3,085.0
4PUD	CODY 16-11		50.0		31.20150		24.95263	06/2012		630.2		336.6		157.3		84.0		13,874.3		1,537.5		1,389.2		2,074.9		8,872.7		3,045.9
4PUD	CO PLAN		50.0		12.85535		10.21519	07/2012		630.0		336.6		64.4		34.4		5,678.2		629.3		571.6		854.9		3,622.5		1,237.5
4PUD	Denali 31-21		50.0		0.03125		0.02483	05/2012		481.8		250.1		0.1		0.1		10.6		1.2		1.3		0.1		7.9		3.7
4PUD	Jurasin 32-29		50.0		0.60625		0.48500	04/2012		630.6		336.6		3.1		1.6		269.8		29.9		27.1		39.6		173.3		61.2
4PUD	Lancaster 2-11H		50.0		6.22970		4.98376	03/2012		630.8		336.6		31.4		16.8		2,773.6		307.4		278.5		406.5		1,781.2		634.3
4PUD	Montclair 1-12		50.0		1.59695		1.27756	03/2012		482.1		250.1		6.2		3.2		543.1		60.2		68.1		6.4		408.4		193.5
4PUD	Nomad 6-7		50.0		14.46787		11.43404	04/2012		482.0		250.1		55.1		28.6		4,859.3		538.6		615.9		57.9		3,647.0		1,715.4
4PUD	Olson 15-22		50.0		0.78125		0.62500	01/2012		631.2		336.6		3.9		2.1		348.0		38.6		35.0		0.0		274.4		132.6
4PUD	Reistad 1-1		50.0		8.62284		6.89828	01/2012		631.2		336.6		43.5		23.2		3,841.4		425.7		386.6		0.0		3,029.1		1,463.7
4PUD	Ridgeway 2 5-36 H		50.0		1.87500		1.50000	04/2012		630.6		336.6		9.5		5.0		834.5		92.5		83.7		122.3		536.0		189.4
4PUD	Titan 36-25		50.0		0.80711		0.64569	02/2012		482.3		250.1		3.1		1.6		274.6		30.4		34.5		3.2		206.5		98.6
4PUD	UNNAMED 1-12		50.0		11.34369		8.99696	05/2012		630.4		336.6		56.7		30.3		5,004.1		554.6		505.8		740.2		3,203.6		1,119.7
4PUD	Willoch 1-16H		50.0		2.50820		2.00656	01/2012		482.4		250.1		9.7		5.0		853.5		94.6		107.2		0.0		651.7		318.9
4PUD	Wolter 15-8H		50.0		1.54229		1.21070	02/2012		631.0		336.6		7.6		4.1		674.0		74.7		69.1		27.8		502.5		226.8
4PUD	Yukon 12-1		50.0		1.25000		1.00000	06/2012		630.2		336.6		6.3		3.4		556.0		61.6		55.7		5.0		433.8		199.1
	TOTAL PUD									9,829.6		5,203.4		639.7		340.4		56,438.1		6,254.6		5,853.9		7,111.1		37,218.6		13,837.8
	TOTAL ALL RESERVE CATEGORIES									14,476.5		7,921.7		742.7		400.3		65,536.1		7,262.1		6,956.3		7,123.8		44,193.9		17,307.6

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 49

AMERICAN EAGLE ENERGY	DATE	: 03/09/2012
SPYGLASS	TIME	: 12:40:24
TOTAL PROVED	DBS	: MHA
	SETTINGS	: SETDATA
	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		1693.761		1527.005		79.923		71.694		86.470		3.288		6910.949		235.731		7146.681
12-2013		1131.541		968.244		59.607		50.829		86.470		3.288		5154.236		167.125		5321.361
12-2014		861.139		699.039		44.446		35.933		86.470		3.288		3843.205		118.148		3961.354
12-2015		724.311		557.839		37.094		28.445		86.470		3.288		3207.487		93.528		3301.014
12-2016		637.461		465.806		32.510		23.650		86.470		3.288		2811.163		77.760		2888.924
12-2017		575.963		399.323		29.298		20.219		86.470		3.288		2533.377		66.480		2599.857
12-2018		529.439		348.284		26.884		17.602		86.470		3.288		2324.638		57.874		2382.511
12-2019		492.401		307.339		24.980		15.516		86.470		3.288		2160.002		51.018		2211.020
12-2020		461.654		273.372		23.423		13.803		86.470		3.288		2025.397		45.385		2070.783
12-2021		435.507		244.639		22.118		12.365		86.470		3.288		1912.545		40.658		1953.203
12-2022		412.382		219.733		20.980		11.128		86.470		3.288		1814.160		36.587		1850.747
12-2023		390.698		197.466		19.916		10.021		86.470		3.288		1722.135		32.949		1755.084
12-2024		370.172		177.460		18.906		9.025		86.470		3.288		1634.804		29.673		1664.477
12-2025		350.742		159.485		17.948		8.128		86.470		3.288		1551.925		26.723		1578.648
12-2026		332.348		143.335		17.038		7.320		86.470		3.288		1473.270		24.067		1497.337
S TOT		9399.516		6688.368		475.070		335.677		86.470		3.288		41079.289		1103.707		42183.000
AFTER		5077.000		1233.351		267.615		64.585		86.470		3.288		23140.697		212.356		23353.057
TOTAL		14476.516		7921.719		742.685		400.263		86.470		3.288		64219.984		1316.064		65536.055

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		442.074		345.547		226.872		0.000		0.000		7123.775		-991.588		-991.588		-1232.711
12-2013		329.137		257.712		219.226		0.000		0.000		0.000		4515.286		3523.698		2695.059
12-2014		244.998		192.160		192.537		0.000		0.000		0.000		3331.659		6855.357		5326.020
12-2015		204.142		160.374		179.589		0.000		0.000		0.000		2756.910		9612.267		7304.143
12-2016		178.644		140.558		171.514		0.000		0.000		0.000		2398.208		12010.474		8868.019
12-2017		160.757		126.669		165.853		0.000		0.000		0.000		2146.578		14157.052		10140.329
12-2018		147.308		116.232		161.599		0.000		0.000		0.000		1957.372		16114.424		11194.898
12-2019		136.696		108.000		158.244		0.000		0.000		0.000		1808.080		17922.504		12080.400
12-2020		128.018		101.270		155.501		0.000		0.000		0.000		1685.994		19608.498		12830.997
12-2021		120.742		95.627		153.201		0.000		0.000		0.000		1583.632		21192.131		13471.898
12-2022		114.403		90.708		151.196		0.000		0.000		0.000		1494.440		22686.570		14021.710
12-2023		108.484		86.107		149.322		0.000		0.000		0.000		1411.172		24097.742		14493.690
12-2024		102.878		81.740		147.543		0.000		0.000		0.000		1332.316		25430.059		14898.787
12-2025		97.568		77.596		145.855		0.000		0.000		0.000		1257.628		26687.686		15246.413
12-2026		92.539		73.663		144.254		0.000		0.000		0.000		1186.880		27874.566		15544.659
S TOT		2608.387		2053.965		2522.306		0.000		0.000		7123.775		27874.566		27874.566		15544.659
AFTER		1442.741		1157.035		4433.954		0.000		0.000		0.000		16319.327		44193.887		17307.588
TOTAL		4051.128		3211.000		6956.260		0.000		0.000		7123.775		44193.891		44193.887		17307.588

	OIL		GAS
GROSS WELLS		28.0		0.0
GROSS ULT., MB & MMF		14944.153		8333.334
GROSS CUM., MB & MMF		467.638		411.614
GROSS RES., MB & MMF		14476.515		7921.720
NET RES., MB & MMF		742.685		400.263
NET REVENUE, M$		64219.984		1316.063
INITIAL PRICE, $		86.470		3.288
INITIAL N.I., PCT.		1.214		1.135

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		25308.211
DISCOUNT %	10.00		10.00		17307.594
UNDISCOUNTED PAYOUT, YRS.	1.22		12.00		15290.599
DISCOUNTED P AYOUT, YRS.	1.31		15.00		12950.768
UNDISCOUNTED NET/INVEST.	7.20		18.00		11165.454
DISCOUNTED NET/INVEST.	3.45		20.00		10190.413
RATE-OF-RETURN, PCT.	100.00		30.00		6841.533
INITIAL W.I., PCT.	6.507		60.00		2534.543
			80.00		1206.874
			100.00		335.110

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 50

AMERICAN EAGLE ENERGY	DATE	: 03/09/2012
SPYGLASS	TIME	: 12:40:23
TOTAL PDP	DBS	: MHA
	SETTINGS	: SETDATA
	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		552.375		517.880		11.859		11.412		86.470		3.288		1025.448		37.524		1062.972
12-2013		319.730		284.286		6.790		6.126		86.470		3.288		587.134		20.141		607.275
12-2014		251.958		212.960		5.344		4.571		86.470		3.288		462.085		15.030		477.115
12-2015		214.826		172.593		4.554		3.697		86.470		3.288		393.787		12.156		405.943
12-2016		190.457		145.446		4.036		3.111		86.470		3.288		349.033		10.229		359.263
12-2017		172.873		125.493		3.663		2.681		86.470		3.288		316.770		8.816		325.586
12-2018		159.403		110.001		3.378		2.348		86.470		3.288		292.072		7.720		299.791
12-2019		148.412		97.361		3.146		2.077		86.470		3.288		272.049		6.829		278.878
12-2020		138.880		86.597		2.949		1.849		86.470		3.288		254.974		6.079		261.053
12-2021		130.450		77.301		2.777		1.654		86.470		3.288		240.105		5.437		245.542
12-2022		122.768		69.128		2.621		1.482		86.470		3.288		226.650		4.874		231.524
12-2023		115.565		61.829		2.475		1.329		86.470		3.288		214.001		4.371		218.372
12-2024		108.796		55.304		2.337		1.192		86.470		3.288		202.077		3.919		205.996
12-2025		102.434		49.470		2.207		1.069		86.470		3.288		190.834		3.514		194.348
12-2026		96.456		44.254		2.084		0.958		86.470		3.288		180.234		3.151		183.385
S TOT		2825.384		2109.904		60.220		45.557		86.470		3.288		5207.251		149.791		5357.042
AFTER		1339.425		358.340		30.685		8.094		86.470		3.288		2653.296		26.612		2679.908
TOTAL		4164.809		2468.244		90.905		53.651		86.470		3.288		7860.547		176.403		8036.951

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		65.760		51.272		37.961		0.000		0.000		0.000		907.978		907.978		873.009
12-2013		37.565		29.357		28.952		0.000		0.000		0.000		511.402		1419.380		1317.555
12-2014		29.511		23.104		26.369		0.000		0.000		0.000		398.131		1817.510		1631.882
12-2015		25.106		19.689		24.955		0.000		0.000		0.000		336.192		2153.703		1873.079
12-2016		22.218		17.452		24.027		0.000		0.000		0.000		295.567		2449.270		2065.807
12-2017		20.134		15.839		23.357		0.000		0.000		0.000		266.257		2715.527		2223.615
12-2018		18.537		14.604		22.844		0.000		0.000		0.000		243.807		2959.333		2354.967
12-2019		17.243		13.602		22.428		0.000		0.000		0.000		225.605		3184.938		2465.456
12-2020		16.140		12.749		22.074		0.000		0.000		0.000		210.091		3395.029		2558.990
12-2021		15.180		12.005		21.766		0.000		0.000		0.000		196.591		3591.620		2638.554
12-2022		14.312		11.332		21.488		0.000		0.000		0.000		184.392		3776.011		2706.396
12-2023		13.499		10.700		21.227		0.000		0.000		0.000		172.946		3948.958		2764.242
12-2024		12.733		10.104		20.981		0.000		0.000		0.000		162.178		4111.136		2813.556
12-2025		12.012		9.542		20.749		0.000		0.000		0.000		152.045		4263.181		2855.586
12-2026		11.334		9.012		20.531		0.000		0.000		0.000		142.508		4405.688		2891.398
S TOT		331.284		260.363		359.707		0.000		0.000		0.000		4405.688		4405.688		2891.398
AFTER		165.571		132.665		607.153		0.000		0.000		0.000		1774.520		6180.207		3092.704
TOTAL		496.855		393.027		966.861		0.000		0.000		0.000		6180.208		6180.207		3092.704

	OIL		GAS
GROSS WELLS		10.0		0.0
GROSS ULT., MB & MMF		4632.447		2879.857
GROSS CUM., MB & MMF		467.638		411.614
GROSS RES., MB & MMF		4164.810		2468.244
NET RES., MB & MMF		90.905		53.651
NET REVENUE, M$		7860.547		176.403
INITIAL PRICE, $		86.470		3.288
INITIAL N.I., PCT.		1.214		1.135

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		4038.455
DISCOUNT %	10.00		10.00		3092.704
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		2850.226
DISCOUNTED PAYOUT, YRS.	0.00		15.00		2567.044
UNDISCOUNTED NET/INVEST.	0.00		18.00		2349.737
DISCOUNTED NET/INVEST.	0.00		20.00		2230.652
RATE-OF-RETURN, PCT.	100.00		30.00		1819.786
INITIAL W.I., PCT.	2.735		60.00		1286.870
			80.00		1120.365
			100.00		1009.599

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 51

AMERICAN EAGLE ENERGY	DATE	: 03/09/2012
SPYGLASS	TIME	: 12:40:23
TOTAL PNP	DBS	: MHA
	SETTINGS	: SETDATA
	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		54.984		48.529		1.372		1.211		86.470		3.288		118.658		3.982		122.640
12-2013		36.905		30.892		0.921		0.771		86.470		3.288		79.642		2.535		82.177
12-2014		28.131		22.258		0.702		0.555		86.470		3.288		60.708		1.826		62.534
12-2015		23.653		17.697		0.590		0.442		86.470		3.288		51.045		1.452		52.497
12-2016		20.809		14.724		0.519		0.367		86.470		3.288		44.908		1.208		46.116
12-2017		18.796		12.578		0.469		0.314		86.470		3.288		40.563		1.032		41.595
12-2018		17.274		10.933		0.431		0.273		86.470		3.288		37.279		0.897		38.176
12-2019		16.071		9.620		0.401		0.240		86.470		3.288		34.683		0.789		35.472
12-2020		15.089		8.543		0.377		0.213		86.470		3.288		32.564		0.701		33.265
12-2021		14.268		7.640		0.356		0.191		86.470		3.288		30.791		0.627		31.418
12-2022		13.548		6.862		0.338		0.171		86.470		3.288		29.238		0.563		29.801
12-2023		12.871		6.166		0.321		0.154		86.470		3.288		27.776		0.506		28.282
12-2024		12.227		5.541		0.305		0.138		86.470		3.288		26.387		0.455		26.842
12-2025		11.616		4.979		0.290		0.124		86.470		3.288		25.068		0.409		25.476
12-2026		11.035		4.474		0.275		0.112		86.470		3.288		23.815		0.367		24.182
S TOT		307.278		211.436		7.669		5.277		86.470		3.288		663.123		17.350		680.474
AFTER		174.846		38.689		4.364		0.966		86.470		3.288		377.327		3.175		380.502
TOTAL		482.123		250.125		12.033		6.242		86.470		3.288		1040.450		20.525		1060.976

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		7.586		5.933		4.355		0.000		0.000		12.717		92.049		92.049		87.135
12-2013		5.083		3.982		3.932		0.000		0.000		0.000		69.181		161.230		147.296
12-2014		3.867		3.035		3.541		0.000		0.000		0.000		52.090		213.320		188.428
12-2015		3.246		2.552		3.342		0.000		0.000		0.000		43.357		256.677		219.537
12-2016		2.852		2.245		3.215		0.000		0.000		0.000		37.804		294.481		244.188
12-2017		2.572		2.028		3.126		0.000		0.000		0.000		33.870		328.350		264.263
12-2018		2.360		1.864		3.058		0.000		0.000		0.000		30.894		359.244		280.908
12-2019		2.193		1.734		3.004		0.000		0.000		0.000		28.541		387.785		294.885
12-2020		2.056		1.628		2.961		0.000		0.000		0.000		26.619		414.404		306.736
12-2021		1.942		1.540		2.924		0.000		0.000		0.000		25.012		439.416		316.859
12-2022		1.842		1.462		2.892		0.000		0.000		0.000		23.605		463.021		325.543
12-2023		1.748		1.389		2.862		0.000		0.000		0.000		22.283		485.304		332.996
12-2024		1.659		1.319		2.833		0.000		0.000		0.000		21.030		506.335		339.390
12-2025		1.574		1.253		2.806		0.000		0.000		0.000		19.842		526.177		344.875
12-2026		1.494		1.191		2.780		0.000		0.000		0.000		18.716		544.893		349.578
S TOT		42.076		33.156		47.632		0.000		0.000		12.717		544.893		544.893		349.578
AFTER		23.506		18.866		87.900		0.000		0.000		0.000		250.229		795.122		377.105
TOTAL		65.582		52.023		135.532		0.000		0.000		12.717		795.122		795.122		377.105

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		482.123		250.125
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		482.123		250.125
NET RES., MB & MMF		12.032		6.242
NET REVENUE, M$		1040.450		20.525
INITIAL PRICE, $		86.470		3.288
INITIAL N.I., PCT.		2.496		2.496

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		502.735
DISCOUNT %	10.00		10.00		377.105
UNDISCOUNTED PAYOUT, YRS.	0.12		12.00		345.251
DISCOUNTED PAYOUT, YRS.	0.13		15.00		308.203
UNDISCOUNTED NET/INVEST.	63.52		18.00		279.860
DISCOUNTED NET/INVEST.	30.89		20.00		264.349
RATE-OF-RETURN, PCT.	100.00		30.00		210.848
INITIAL W.I., PCT.	3.179		60.00		141.039
			80.00		119.001
			100.00		104.258

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 52

AMERICAN EAGLE ENERGY	DATE	: 03/09/2012
SPYGLASS	TIME	: 12:40:24
TOTAL PUD	DBS	: MHA
	SETTINGS	: SETDATA
	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		1086.403		960.596		66.692		59.071		86.470		3.288		5766.843		194.225		5961.068
12-2013		774.906		653.066		51.896		43.932		86.470		3.288		4487.460		144.449		4631.909
12-2014		581.050		463.821		38.400		30.807		86.470		3.288		3320.413		101.292		3421.705
12-2015		485.832		367.549		31.949		24.306		86.470		3.288		2762.655		79.920		2842.574
12-2016		426.194		305.636		27.954		20.171		86.470		3.288		2417.222		66.323		2483.545
12-2017		384.293		261.252		25.165		17.224		86.470		3.288		2176.043		56.632		2232.676
12-2018		352.762		227.350		23.075		14.981		86.470		3.288		1995.287		49.257		2044.544
12-2019		327.917		200.358		21.433		13.199		86.470		3.288		1853.271		43.399		1896.670
12-2020		307.684		178.231		20.098		11.741		86.470		3.288		1737.860		38.605		1776.465
12-2021		290.789		159.697		18.985		10.521		86.470		3.288		1641.649		34.594		1676.243
12-2022		276.066		143.743		18.021		9.474		86.470		3.288		1558.272		31.150		1589.422
12-2023		262.262		129.470		17.120		8.538		86.470		3.288		1480.358		28.073		1508.430
12-2024		249.149		116.615		16.264		7.695		86.470		3.288		1406.340		25.300		1431.639
12-2025		236.692		105.036		15.451		6.934		86.470		3.288		1336.023		22.801		1358.823
12-2026		224.857		94.608		14.678		6.250		86.470		3.288		1269.221		20.548		1289.770
S TOT		6266.854		4367.029		407.181		284.844		86.470		3.288		35208.914		936.566		36145.480
AFTER		3562.729		836.321		232.567		55.526		86.470		3.288		20110.074		182.570		20292.646
TOTAL		9829.583		5203.351		639.748		340.370		86.470		3.288		55318.992		1119.135		56438.129

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		368.727		288.342		184.556		0.000		0.000		7111.058		-1991.615		-1991.615		-2192.855
12-2013		286.490		224.373		186.343		0.000		0.000		0.000		3934.703		1943.088		1230.207
12-2014		211.619		166.021		162.627		0.000		0.000		0.000		2881.438		4824.526		3505.709
12-2015		175.789		138.133		151.292		0.000		0.000		0.000		2377.361		7201.887		5211.527
12-2016		153.574		120.861		144.272		0.000		0.000		0.000		2064.837		9266.724		6558.024
12-2017		138.052		108.802		139.371		0.000		0.000		0.000		1846.451		11113.175		7652.451
12-2018		126.411		99.764		135.697		0.000		0.000		0.000		1682.672		12795.847		8559.024
12-2019		117.260		92.664		132.811		0.000		0.000		0.000		1553.935		14349.782		9320.059
12-2020		109.822		86.893		130.466		0.000		0.000		0.000		1449.283		15799.065		9965.272
12-2021		103.620		82.082		128.511		0.000		0.000		0.000		1362.029		17161.094		10516.486
12-2022		98.248		77.914		126.816		0.000		0.000		0.000		1286.444		18447.537		10989.772
12-2023		93.237		74.018		125.233		0.000		0.000		0.000		1215.943		19663.480		11396.453
12-2024		88.486		70.317		123.729		0.000		0.000		0.000		1149.108		20812.588		11745.842
12-2025		83.981		66.801		122.300		0.000		0.000		0.000		1085.741		21898.328		12045.953
12-2026		79.710		63.461		120.942		0.000		0.000		0.000		1025.656		22923.984		12303.684
S TOT		2235.027		1760.446		2114.967		0.000		0.000		7111.058		22923.984		22923.984		12303.684
AFTER		1253.664		1005.504		3738.901		0.000		0.000		0.000		14294.578		37218.559		13837.784
TOTAL		3488.691		2765.949		5853.868		0.000		0.000		7111.058		37218.559		37218.559		13837.784

	OIL		GAS
GROSS WELLS		17.0		0.0
GROSS ULT., MB & MMF		9829.584		5203.351
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		9829.584		5203.351
NET RES., MB & MMF		639.748		340.370
NET REVENUE, M$		55319.000		1119.135
INITIAL PRICE, $		86.470		3.288
INITIAL N.I., PCT.		6.139		6.149

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		20767.020
DISCOUNT %	10.00		10.00		13837.785
UNDISCOUNTED PAYOUT, YRS.	1.51		12.00		12095.122
DISCOUNTED PAYOUT, YRS.	1.64		15.00		10075.520
UNDISCOUNTED NET/INVEST.	6.23		18.00		8535.857
DISCOUNTED NET/INVEST.	2.97		20.00		7695.413
RATE-OF-RETURN, PCT.	79.35		30.00		4810.899
INITIAL W.I., PCT.	8.278		60.00		1106.634
			80.00		-32.492
			100.00		-778.747

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 53

Bagley 4-30H S18-19	DATE	: 03/09/2012
163N 100W 18	TIME	: 12:39:12
THREE FORKS	DBS	: MHA
SM ENERGY	SETTINGS	: SETDATA
1PDP	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		70.117		61.946		2.138		1.889		86.470		3.288		184.903		6.212		191.115
12-2013		44.301		37.465		1.351		1.143		86.470		3.288		116.826		3.757		120.583
12-2014		35.270		28.584		1.076		0.872		86.470		3.288		93.011		2.866		95.877
12-2015		30.204		23.462		0.921		0.716		86.470		3.288		79.650		2.353		82.003
12-2016		26.844		19.988		0.819		0.610		86.470		3.288		70.791		2.004		72.795
12-2017		24.405		17.420		0.744		0.531		86.470		3.288		64.359		1.747		66.106
12-2018		22.528		15.415		0.687		0.470		86.470		3.288		59.409		1.546		60.955
12-2019		20.943		13.737		0.639		0.419		86.470		3.288		55.228		1.378		56.606
12-2020		19.477		12.248		0.594		0.374		86.470		3.288		51.362		1.228		52.590
12-2021		18.114		10.919		0.552		0.333		86.470		3.288		47.767		1.095		48.862
12-2022		16.846		9.735		0.514		0.297		86.470		3.288		44.423		0.976		45.399
12-2023		15.666		8.680		0.478		0.265		86.470		3.288		41.314		0.870		42.184
12-2024		14.570		7.738		0.444		0.236		86.470		3.288		38.422		0.776		39.198
12-2025		13.550		6.899		0.413		0.210		86.470		3.288		35.732		0.692		36.424
12-2026		12.601		6.151		0.384		0.188		86.470		3.288		33.231		0.617		33.848
S TOT		385.437		280.387		11.755		8.551		86.470		3.288		1016.428		28.116		1044.544
AFTER		150.702		49.246		4.596		1.502		86.470		3.288		397.414		4.938		402.352
TOTAL		536.140		329.634		16.351		10.053		86.470		3.288		1413.842		33.054		1446.896

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		11.822		9.245		6.589		0.000		0.000		0.000		163.459		163.459		156.808
12-2013		7.458		5.841		5.190		0.000		0.000		0.000		102.094		265.553		245.540
12-2014		5.930		4.651		4.700		0.000		0.000		0.000		80.597		346.150		309.167
12-2015		5.071		3.983		4.425		0.000		0.000		0.000		68.524		414.673		358.327
12-2016		4.502		3.540		4.243		0.000		0.000		0.000		60.511		475.184		397.782
12-2017		4.088		3.218		4.111		0.000		0.000		0.000		54.689		529.873		430.195
12-2018		3.769		2.970		4.009		0.000		0.000		0.000		50.206		580.080		457.244
12-2019		3.500		2.761		3.923		0.000		0.000		0.000		46.421		626.501		479.979
12-2020		3.251		2.568		3.844		0.000		0.000		0.000		42.927		669.428		499.092
12-2021		3.021		2.388		3.770		0.000		0.000		0.000		39.683		709.110		515.154
12-2022		2.807		2.221		3.701		0.000		0.000		0.000		36.670		745.781		528.648
12-2023		2.608		2.066		3.637		0.000		0.000		0.000		33.873		779.654		539.979
12-2024		2.423		1.921		3.578		0.000		0.000		0.000		31.276		810.930		549.490
12-2025		2.251		1.787		3.523		0.000		0.000		0.000		28.863		839.793		557.470
12-2026		2.092		1.662		3.471		0.000		0.000		0.000		26.623		866.416		564.161
S TOT		64.592		50.821		62.714		0.000		0.000		0.000		866.416		866.416		564.161
AFTER		24.861		19.871		96.688		0.000		0.000		0.000		260.932		1127.349		597.568
TOTAL		89.453		70.692		159.402		0.000		0.000		0.000		1127.349		1127.349		597.568

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		589.358		363.971
GROSS CUM., MB & MMF		53.218		34.337
GROSS RES., MB & MMF		536.140		329.634
NET RES., MB & MMF		16.351		10.053
NET REVENUE, M$		1413.842		33.054
INITIAL PRICE, $		86.470		3.288
INITIAL N.I., PCT.		3.050		3.050

		P.W. %		P.W., M$
LIFE, YRS.	46.75		5.00		770.982
DISCOUNT %	10.00		10.00		597.568
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		551.369
DISCOUNTED PAYOUT, YRS.	0.00		15.00		496.580
UNDISCOUNTED NET/INVEST.	0.00		18.00		453.983
DISCOUNTED NET/INVEST.	0.00		20.00		430.461
RATE-OF-RETURN, PCT.	100.00		30.00		348.558
INITIAL W.I., PCT.	3.872		60.00		241.604
			80.00		208.323
			100.00		186.288

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 54

Gerhardsen 1-10H S3-10	DATE	: 03/09/2012
160N 97W 3	TIME	: 12:39:12
THREE FORKS	DBS	: MHA
CONTINENTAL	SETTINGS	: SETDATA
1PDP	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		53.307		46.393		1.010		0.879		86.470		3.288		87.362		2.891		90.253
12-2013		33.694		27.688		0.639		0.525		86.470		3.288		55.219		1.725		56.945
12-2014		26.828		20.847		0.508		0.395		86.470		3.288		43.966		1.299		45.265
12-2015		22.975		16.886		0.435		0.320		86.470		3.288		37.652		1.052		38.705
12-2016		20.420		14.197		0.387		0.269		86.470		3.288		33.465		0.885		34.350
12-2017		18.565		12.210		0.352		0.231		86.470		3.288		30.425		0.761		31.186
12-2018		17.139		10.664		0.325		0.202		86.470		3.288		28.088		0.665		28.753
12-2019		15.999		9.417		0.303		0.178		86.470		3.288		26.219		0.587		26.806
12-2020		15.060		8.386		0.285		0.159		86.470		3.288		24.680		0.523		25.203
12-2021		14.267		7.516		0.270		0.142		86.470		3.288		23.381		0.468		23.849
12-2022		13.552		6.754		0.257		0.128		86.470		3.288		22.210		0.421		22.631
12-2023		12.875		6.071		0.244		0.115		86.470		3.288		21.099		0.378		21.478
12-2024		12.231		5.456		0.232		0.103		86.470		3.288		20.044		0.340		20.384
12-2025		11.619		4.904		0.220		0.093		86.470		3.288		19.042		0.306		19.348
12-2026		11.038		4.407		0.209		0.084		86.470		3.288		18.090		0.275		18.365
S TOT		299.570		201.798		5.678		3.825		86.470		3.288		490.943		12.575		503.519
AFTER		174.897		38.195		3.315		0.724		86.470		3.288		286.626		2.380		289.006
TOTAL		474.466		239.993		8.992		4.548		86.470		3.288		777.570		14.955		792.525

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		5.582		4.368		3.474		0.000		0.000		0.000		76.828		76.828		73.704
12-2013		3.522		2.761		2.823		0.000		0.000		0.000		47.839		124.667		115.282
12-2014		2.799		2.198		2.596		0.000		0.000		0.000		37.672		162.339		145.024
12-2015		2.393		1.883		2.468		0.000		0.000		0.000		31.961		194.300		167.953
12-2016		2.124		1.673		2.383		0.000		0.000		0.000		28.169		222.469		186.321
12-2017		1.928		1.521		2.321		0.000		0.000		0.000		25.415		247.884		201.384
12-2018		1.778		1.404		2.274		0.000		0.000		0.000		23.297		271.181		213.935
12-2019		1.657		1.311		2.236		0.000		0.000		0.000		21.602		292.782		224.514
12-2020		1.558		1.234		2.205		0.000		0.000		0.000		20.205		312.988		233.509
12-2021		1.474		1.169		2.179		0.000		0.000		0.000		19.027		332.015		241.209
12-2022		1.399		1.110		2.155		0.000		0.000		0.000		17.966		349.981		247.819
12-2023		1.327		1.055		2.133		0.000		0.000		0.000		16.962		366.943		253.492
12-2024		1.260		1.002		2.111		0.000		0.000		0.000		16.011		382.954		258.360
12-2025		1.196		0.952		2.091		0.000		0.000		0.000		15.109		398.063		262.537
12-2026		1.135		0.905		2.072		0.000		0.000		0.000		14.253		412.317		266.118
S TOT		31.133		24.547		35.522		0.000		0.000		0.000		412.317		412.317		266.118
AFTER		17.854		14.331		65.501		0.000		0.000		0.000		191.320		603.636		287.116
TOTAL		48.987		38.878		101.023		0.000		0.000		0.000		603.636		603.636		287.116

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		525.613		298.651
GROSS CUM., MB & MMF		51.147		58.658
GROSS RES., MB & MMF		474.466		239.993
NET RES., MB & MMF		8.992		4.548
NET REVENUE, M$		777.570		14.955
INITIAL PRICE, $		86.470		3.288
INITIAL N.I., PCT.		1.895		1.895

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		381.737
DISCOUNT %	10.00		10.00		287.116
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		263.257
DISCOUNTED PAYOUT, YRS.	0.00		15.00		235.607
UNDISCOUNTED NET/INVEST.	0.00		18.00		214.543
DISCOUNTED NET/INVEST.	0.00		20.00		203.055
RATE-OF-RETURN, PCT.	100.00		30.00		163.713
INITIAL W.I., PCT.	2.369		60.00		113.332
			80.00		97.750
			100.00		87.437

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 55

Legaard 4-25H S13-24	DATE	: 03/09/2012
163N 101W 13	TIME	: 12:39:12
THREE FORKS	DBS	: MHA
SM ENERGY	SETTINGS	: SETDATA
1PDP	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		62.788		55.267		1.833		1.614		86.470		3.288		158.515		5.305		163.821
12-2013		31.243		25.839		0.912		0.754		86.470		3.288		78.876		2.481		81.356
12-2014		24.112		18.815		0.704		0.549		86.470		3.288		60.872		1.806		62.679
12-2015		20.374		15.006		0.595		0.438		86.470		3.288		51.437		1.441		52.878
12-2016		17.973		12.496		0.525		0.365		86.470		3.288		45.374		1.200		46.574
12-2017		16.262		10.673		0.475		0.312		86.470		3.288		41.054		1.025		42.079
12-2018		14.962		9.271		0.437		0.271		86.470		3.288		37.774		0.890		38.664
12-2019		13.932		8.150		0.407		0.238		86.470		3.288		35.174		0.782		35.956
12-2020		13.090		7.229		0.382		0.211		86.470		3.288		33.046		0.694		33.740
12-2021		12.383		6.456		0.362		0.189		86.470		3.288		31.263		0.620		31.883
12-2022		11.760		5.789		0.343		0.169		86.470		3.288		29.690		0.556		30.246
12-2023		11.172		5.192		0.326		0.152		86.470		3.288		28.205		0.498		28.704
12-2024		10.614		4.657		0.310		0.136		86.470		3.288		26.795		0.447		27.242
12-2025		10.083		4.177		0.294		0.122		86.470		3.288		25.455		0.401		25.856
12-2026		9.579		3.746		0.280		0.109		86.470		3.288		24.183		0.360		24.542
S TOT		280.327		192.763		8.185		5.628		86.470		3.288		707.715		18.505		726.219
AFTER		151.770		31.870		4.431		0.930		86.470		3.288		383.160		3.059		386.219
TOTAL		432.097		224.633		12.616		6.558		86.470		3.288		1090.875		21.564		1112.439

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		10.133		7.926		5.894		0.000		0.000		0.000		139.868		139.868		134.858
12-2013		5.032		3.944		4.266		0.000		0.000		0.000		68.115		207.982		194.083
12-2014		3.876		3.044		3.898		0.000		0.000		0.000		51.861		259.843		235.032
12-2015		3.270		2.572		3.705		0.000		0.000		0.000		43.331		303.174		266.121
12-2016		2.880		2.269		3.581		0.000		0.000		0.000		37.844		341.018		290.799
12-2017		2.602		2.053		3.493		0.000		0.000		0.000		33.932		374.949		310.910
12-2018		2.390		1.889		3.426		0.000		0.000		0.000		30.959		405.908		327.590
12-2019		2.223		1.759		3.373		0.000		0.000		0.000		28.602		434.510		341.598
12-2020		2.086		1.652		3.329		0.000		0.000		0.000		26.673		461.183		353.472
12-2021		1.971		1.563		3.293		0.000		0.000		0.000		25.056		486.239		363.613
12-2022		1.869		1.484		3.261		0.000		0.000		0.000		23.631		509.870		372.307
12-2023		1.774		1.410		3.230		0.000		0.000		0.000		22.289		532.159		379.761
12-2024		1.684		1.340		3.202		0.000		0.000		0.000		21.017		553.176		386.152
12-2025		1.598		1.273		3.174		0.000		0.000		0.000		19.811		572.987		391.628
12-2026		1.517		1.209		3.148		0.000		0.000		0.000		18.668		591.656		396.319
S TOT		44.904		35.386		54.274		0.000		0.000		0.000		591.656		591.656		396.319
AFTER		23.859		19.158		100.717		0.000		0.000		0.000		242.485		834.141		423.463
TOTAL		68.763		54.544		154.991		0.000		0.000		0.000		834.141		834.141		423.463

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		469.519		262.925
GROSS CUM., MB & MMF		37.422		38.292
GROSS RES., MB & MMF		432.097		224.633
NET RES., MB & MMF		12.616		6.558
NET REVENUE, M$		1090.875		21.564
INITIAL PRICE, $		86.470		3.288
INITIAL N.I., PCT.		2.920		2.920

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		547.981
DISCOUNT %	10.00		10.00		423.463
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		391.753
DISCOUNTED PAYOUT, YRS.	0.00		15.00		354.815
UNDISCOUNTED NET/INVEST.	0.00		18.00		326.522
DISCOUNTED NET/INVEST.	0.00		20.00		311.028
RATE-OF-RETURN, PCT.	100.00		30.00		257.545
INITIAL W.I., PCT.	3.686		60.00		187.658
			80.00		165.537
			100.00		150.699

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 56

Mustang 7-6 S6-7	DATE	: 03/09/2012
163N 98W 6	TIME	: 12:39:13
THREE FORKS	DBS	: MHA
SAMSON	SETTINGS	: SETDATA
1PDP	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		62.157		54.665		0.161		0.142		86.470		3.288		13.936		0.466		14.402
12-2013		34.850		28.898		0.090		0.075		86.470		3.288		7.813		0.246		8.060
12-2014		27.205		21.325		0.071		0.055		86.470		3.288		6.099		0.182		6.281
12-2015		23.097		17.121		0.060		0.044		86.470		3.288		5.178		0.146		5.324
12-2016		20.428		14.320		0.053		0.037		86.470		3.288		4.580		0.122		4.702
12-2017		18.514		12.275		0.048		0.032		86.470		3.288		4.151		0.105		4.256
12-2018		17.055		10.694		0.044		0.028		86.470		3.288		3.824		0.091		3.915
12-2019		15.894		9.426		0.041		0.024		86.470		3.288		3.563		0.080		3.644
12-2020		14.943		8.382		0.039		0.022		86.470		3.288		3.350		0.071		3.422
12-2021		14.143		7.504		0.037		0.019		86.470		3.288		3.171		0.064		3.235
12-2022		13.433		6.741		0.035		0.017		86.470		3.288		3.012		0.057		3.069
12-2023		12.761		6.057		0.033		0.016		86.470		3.288		2.861		0.052		2.913
12-2024		12.123		5.443		0.031		0.014		86.470		3.288		2.718		0.046		2.764
12-2025		11.517		4.891		0.030		0.013		86.470		3.288		2.582		0.042		2.624
12-2026		10.941		4.395		0.028		0.011		86.470		3.288		2.453		0.037		2.490
S TOT		309.062		212.136		0.801		0.550		86.470		3.288		69.292		1.808		71.100
AFTER		173.357		38.006		0.449		0.099		86.470		3.288		38.867		0.324		39.191
TOTAL		482.420		250.142		1.251		0.649		86.470		3.288		108.159		2.132		110.291

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		0.891		0.697		0.515		0.000		0.000		0.000		12.299		12.299		11.826
12-2013		0.498		0.391		0.391		0.000		0.000		0.000		6.779		19.078		17.719
12-2014		0.388		0.305		0.357		0.000		0.000		0.000		5.231		24.309		21.849
12-2015		0.329		0.259		0.338		0.000		0.000		0.000		4.398		28.707		25.005
12-2016		0.291		0.229		0.326		0.000		0.000		0.000		3.856		32.563		27.519
12-2017		0.263		0.208		0.317		0.000		0.000		0.000		3.468		36.031		29.575
12-2018		0.242		0.191		0.311		0.000		0.000		0.000		3.171		39.202		31.283
12-2019		0.225		0.178		0.305		0.000		0.000		0.000		2.935		42.136		32.720
12-2020		0.212		0.168		0.301		0.000		0.000		0.000		2.741		44.878		33.941
12-2021		0.200		0.159		0.298		0.000		0.000		0.000		2.579		47.457		34.984
12-2022		0.190		0.151		0.294		0.000		0.000		0.000		2.435		49.891		35.880
12-2023		0.180		0.143		0.291		0.000		0.000		0.000		2.298		52.190		36.649
12-2024		0.171		0.136		0.288		0.000		0.000		0.000		2.169		54.359		37.308
12-2025		0.162		0.129		0.286		0.000		0.000		0.000		2.047		56.406		37.874
12-2026		0.154		0.123		0.283		0.000		0.000		0.000		1.931		58.337		38.359
S TOT		4.396		3.465		4.903		0.000		0.000		0.000		58.337		58.337		38.359
AFTER		2.421		1.943		8.954		0.000		0.000		0.000		25.872		84.209		41.202
TOTAL		6.817		5.408		13.857		0.000		0.000		0.000		84.209		84.209		41.202

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		482.420		250.142
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		482.420		250.142
NET RES., MB & MMF		1.251		0.649
NET REVENUE, M$		108.159		2.132
INITIAL PRICE, $		86.470		3.288
INITIAL N.I., PCT.		0.259		0.259

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		54.092
DISCOUNT %	10.00		10.00		41.202
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		37.942
DISCOUNTED PAYOUT, YRS.	0.00		15.00		34.158
UNDISCOUNTED NET/INVEST.	0.00		18.00		31.268
DISCOUNTED NET/INVEST.	0.00		20.00		29.690
RATE-OF-RETURN, PCT.	100.00		30.00		24.262
INITIAL W.I., PCT.	0.324		60.00		17.238
			80.00		15.037
			100.00		13.570

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 57

Nielsen 1-12H S1-12	DATE	: 03/09/2012
160N 97W 1	TIME	: 12:39:13
THREE FORKS	DBS	: MHA
CONTINENTAL	SETTINGS	: SETDATA
1PDP	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		24.083		21.259		0.088		0.078		86.470		3.288		7.613		0.256		7.868
12-2013		13.503		11.328		0.049		0.041		86.470		3.288		4.268		0.136		4.405
12-2014		10.541		8.424		0.039		0.031		86.470		3.288		3.332		0.101		3.433
12-2015		8.949		6.814		0.033		0.025		86.470		3.288		2.829		0.082		2.911
12-2016		7.915		5.743		0.029		0.021		86.470		3.288		2.502		0.069		2.571
12-2017		7.173		4.960		0.026		0.018		86.470		3.288		2.268		0.060		2.327
12-2018		6.608		4.354		0.024		0.016		86.470		3.288		2.089		0.052		2.141
12-2019		6.140		3.855		0.022		0.014		86.470		3.288		1.941		0.046		1.987
12-2020		5.710		3.417		0.021		0.012		86.470		3.288		1.805		0.041		1.846
12-2021		5.311		3.029		0.019		0.011		86.470		3.288		1.679		0.036		1.715
12-2022		4.939		2.684		0.018		0.010		86.470		3.288		1.561		0.032		1.593
12-2023		4.593		2.379		0.017		0.009		86.470		3.288		1.452		0.029		1.481
12-2024		4.272		2.108		0.016		0.008		86.470		3.288		1.350		0.025		1.376
12-2025		3.973		1.869		0.015		0.007		86.470		3.288		1.256		0.022		1.278
12-2026		3.694		1.656		0.014		0.006		86.470		3.288		1.168		0.020		1.188
S TOT		117.403		83.880		0.429		0.307		86.470		3.288		37.112		1.008		38.121
AFTER		32.657		10.820		0.119		0.040		86.470		3.288		10.323		0.130		10.453
TOTAL		150.060		94.700		0.549		0.346		86.470		3.288		47.436		1.138		48.574

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		0.487		0.381		0.483		0.000		0.000		0.000		6.518		6.518		6.269
12-2013		0.272		0.213		0.415		0.000		0.000		0.000		3.503		10.021		9.315
12-2014		0.212		0.167		0.396		0.000		0.000		0.000		2.658		12.679		11.414
12-2015		0.180		0.141		0.386		0.000		0.000		0.000		2.203		14.882		12.995
12-2016		0.159		0.125		0.380		0.000		0.000		0.000		1.907		16.790		14.238
12-2017		0.144		0.113		0.375		0.000		0.000		0.000		1.695		18.485		15.243
12-2018		0.132		0.104		0.371		0.000		0.000		0.000		1.533		20.018		16.069
12-2019		0.123		0.097		0.368		0.000		0.000		0.000		1.399		21.417		16.754
12-2020		0.114		0.090		0.366		0.000		0.000		0.000		1.276		22.693		17.323
12-2021		0.106		0.084		0.363		0.000		0.000		0.000		1.162		23.855		17.793
12-2022		0.099		0.078		0.361		0.000		0.000		0.000		1.056		24.911		18.182
12-2023		0.092		0.073		0.358		0.000		0.000		0.000		0.958		25.869		18.502
12-2024		0.085		0.068		0.356		0.000		0.000		0.000		0.867		26.736		18.766
12-2025		0.079		0.063		0.354		0.000		0.000		0.000		0.782		27.518		18.982
12-2026		0.073		0.058		0.353		0.000		0.000		0.000		0.703		28.222		19.159
S TOT		2.357		1.856		5.686		0.000		0.000		0.000		28.222		28.222		19.159
AFTER		0.646		0.516		5.172		0.000		0.000		0.000		4.120		32.341		19.831
TOTAL		3.003		2.372		10.858		0.000		0.000		0.000		32.341		32.341		19.831

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		196.489		144.493
GROSS CUM., MB & MMF		46.429		49.794
GROSS RES., MB & MMF		150.060		94.700
NET RES., MB & MMF		0.549		0.346
NET REVENUE, M$		47.436		1.138
INITIAL PRICE, $		86.470		3.288
INITIAL N.I., PCT.		0.366		0.366

		P.W. %		P.W., M$
LIFE, YRS.	30.08		5.00		24.367
DISCOUNT %	10.00		10.00		19.831
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		18.538
DISCOUNTED PAYOUT, YRS.	0.00		15.00		16.959
UNDISCOUNTED NET/INVEST.	0.00		18.00		15.696
DISCOUNTED NET/INVEST.	0.00		20.00		14.987
RATE-OF-RETURN, PCT.	100.00		30.00		12.451
INITIAL W.I., PCT.	0.457		60.00		8.988
			80.00		7.873
			100.00		7.124

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 58

Riede 4-14H S2-11	DATE	: 03/09/2012
163N 100W 2	TIME	: 12:39:13
THREE FORKS	DBS	: MHA
SM ENERGY	SETTINGS	: SETDATA
1PDP	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		59.230		52.420		0.152		0.134		86.470		3.288		13.108		0.441		13.549
12-2013		29.472		24.889		0.075		0.064		86.470		3.288		6.522		0.209		6.732
12-2014		22.745		18.385		0.058		0.047		86.470		3.288		5.034		0.155		5.188
12-2015		19.220		14.874		0.049		0.038		86.470		3.288		4.253		0.125		4.379
12-2016		16.954		12.563		0.043		0.032		86.470		3.288		3.752		0.106		3.858
12-2017		15.340		10.885		0.039		0.028		86.470		3.288		3.395		0.092		3.486
12-2018		14.114		9.590		0.036		0.025		86.470		3.288		3.124		0.081		3.204
12-2019		13.111		8.531		0.034		0.022		86.470		3.288		2.902		0.072		2.973
12-2020		12.193		7.597		0.031		0.019		86.470		3.288		2.698		0.064		2.762
12-2021		11.340		6.766		0.029		0.017		86.470		3.288		2.510		0.057		2.566
12-2022		10.546		6.026		0.027		0.015		86.470		3.288		2.334		0.051		2.385
12-2023		9.808		5.366		0.025		0.014		86.470		3.288		2.171		0.045		2.216
12-2024		9.121		4.779		0.023		0.012		86.470		3.288		2.019		0.040		2.059
12-2025		8.483		4.256		0.022		0.011		86.470		3.288		1.877		0.036		1.913
12-2026		7.889		3.791		0.020		0.010		86.470		3.288		1.746		0.032		1.778
S TOT		259.565		190.718		0.664		0.488		86.470		3.288		57.444		1.605		59.049
AFTER		87.206		29.068		0.223		0.074		86.470		3.288		19.299		0.245		19.544
TOTAL		346.771		219.786		0.888		0.563		86.470		3.288		76.743		1.850		78.593

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		0.838		0.655		0.531		0.000		0.000		0.000		11.525		11.525		11.112
12-2013		0.416		0.326		0.388		0.000		0.000		0.000		5.601		17.127		15.983
12-2014		0.321		0.252		0.356		0.000		0.000		0.000		4.260		21.387		19.347
12-2015		0.271		0.213		0.339		0.000		0.000		0.000		3.556		24.943		21.899
12-2016		0.239		0.188		0.328		0.000		0.000		0.000		3.104		28.047		23.922
12-2017		0.216		0.170		0.320		0.000		0.000		0.000		2.781		30.828		25.571
12-2018		0.198		0.156		0.314		0.000		0.000		0.000		2.536		33.364		26.937
12-2019		0.184		0.145		0.309		0.000		0.000		0.000		2.335		35.699		28.081
12-2020		0.171		0.135		0.305		0.000		0.000		0.000		2.152		37.850		29.039
12-2021		0.159		0.125		0.301		0.000		0.000		0.000		1.981		39.832		29.841
12-2022		0.147		0.117		0.297		0.000		0.000		0.000		1.823		41.655		30.512
12-2023		0.137		0.109		0.294		0.000		0.000		0.000		1.677		43.332		31.072
12-2024		0.127		0.101		0.290		0.000		0.000		0.000		1.540		44.872		31.541
12-2025		0.118		0.094		0.287		0.000		0.000		0.000		1.414		46.286		31.932
12-2026		0.110		0.087		0.284		0.000		0.000		0.000		1.296		47.582		32.258
S TOT		3.651		2.872		4.943		0.000		0.000		0.000		47.582		47.582		32.258
AFTER		1.208		0.965		6.480		0.000		0.000		0.000		10.891		58.473		33.776
TOTAL		4.859		3.837		11.423		0.000		0.000		0.000		58.473		58.473		33.776

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		400.193		265.981
GROSS CUM., MB & MMF		53.422		46.195
GROSS RES., MB & MMF		346.771		219.786
NET RES., MB & MMF		0.888		0.563
NET REVENUE, M$		76.743		1.850
INITIAL PRICE, $		86.470		3.288
INITIAL N.I., PCT.		0.256		0.256

		P.W. %		P.W., M$
LIFE, YRS.	39.58		5.00		42.187
DISCOUNT %	10.00		10.00		33.776
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		31.479
DISCOUNTED PAYOUT, YRS.	0.00		15.00		28.725
UNDISCOUNTED NET/INVEST.	0.00		18.00		26.562
DISCOUNTED NET/INVEST.	0.00		20.00		25.359
RATE-OF-RETURN, PCT.	100.00		30.00		21.120
INITIAL W.I., PCT.	0.342		60.00		15.442
			80.00		13.628
			100.00		12.410

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 59

Rostad 9-33H S28-33	DATE	: 03/09/2012
160N 97W 28	TIME	: 12:39:13
THREE FORKS	DBS	: MHA
CONTINENTAL	SETTINGS	: SETDATA
1PDP	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		9.610		21.563		0.048		0.108		86.470		3.288		4.155		0.355		4.509
12-2013		7.006		14.738		0.035		0.074		86.470		3.288		3.029		0.242		3.272
12-2014		5.747		11.341		0.029		0.057		86.470		3.288		2.485		0.186		2.671
12-2015		4.971		9.202		0.025		0.046		86.470		3.288		2.149		0.151		2.300
12-2016		4.431		7.697		0.022		0.038		86.470		3.288		1.916		0.127		2.042
12-2017		4.029		6.567		0.020		0.033		86.470		3.288		1.742		0.108		1.850
12-2018		3.716		5.682		0.019		0.028		86.470		3.288		1.606		0.093		1.700
12-2019		3.453		4.955		0.017		0.025		86.470		3.288		1.493		0.081		1.574
12-2020		3.211		4.324		0.016		0.022		86.470		3.288		1.388		0.071		1.459
12-2021		2.986		3.774		0.015		0.019		86.470		3.288		1.291		0.062		1.353
12-2022		2.777		3.293		0.014		0.016		86.470		3.288		1.201		0.054		1.255
12-2023		2.583		2.874		0.013		0.014		86.470		3.288		1.117		0.047		1.164
12-2024		2.402		2.508		0.012		0.013		86.470		3.288		1.039		0.041		1.080
12-2025		2.234		2.189		0.011		0.011		86.470		3.288		0.966		0.036		1.002
12-2026		2.077		1.910		0.010		0.010		86.470		3.288		0.898		0.031		0.930
S TOT		61.234		102.616		0.306		0.513		86.470		3.288		26.475		1.687		28.162
AFTER		7.810		6.079		0.039		0.030		86.470		3.288		3.377		0.100		3.477
TOTAL		69.044		108.696		0.345		0.543		86.470		3.288		29.851		1.787		31.638

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		0.280		0.208		0.885		0.000		0.000		0.000		3.137		3.137		3.004
12-2013		0.203		0.151		0.787		0.000		0.000		0.000		2.131		5.268		4.856
12-2014		0.166		0.124		0.735		0.000		0.000		0.000		1.647		6.915		6.156
12-2015		0.143		0.107		0.701		0.000		0.000		0.000		1.349		8.264		7.124
12-2016		0.127		0.096		0.677		0.000		0.000		0.000		1.143		9.406		7.870
12-2017		0.115		0.087		0.659		0.000		0.000		0.000		0.989		10.396		8.456
12-2018		0.105		0.080		0.645		0.000		0.000		0.000		0.869		11.265		8.925
12-2019		0.097		0.075		0.633		0.000		0.000		0.000		0.769		12.034		9.302
12-2020		0.090		0.069		0.623		0.000		0.000		0.000		0.676		12.711		9.603
12-2021		0.084		0.065		0.615		0.000		0.000		0.000		0.590		13.301		9.842
12-2022		0.078		0.060		0.607		0.000		0.000		0.000		0.510		13.810		10.030
12-2023		0.072		0.056		0.601		0.000		0.000		0.000		0.435		14.245		10.175
12-2024		0.067		0.052		0.595		0.000		0.000		0.000		0.366		14.611		10.286
12-2025		0.062		0.048		0.590		0.000		0.000		0.000		0.301		14.912		10.370
12-2026		0.058		0.045		0.586		0.000		0.000		0.000		0.242		15.154		10.431
S TOT		1.744		1.324		9.940		0.000		0.000		0.000		15.154		15.154		10.431
AFTER		0.215		0.169		2.636		0.000		0.000		0.000		0.457		15.610		10.526
TOTAL		1.959		1.493		12.576		0.000		0.000		0.000		15.610		15.610		10.526

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		92.810		146.694
GROSS CUM., MB & MMF		23.766		37.998
GROSS RES., MB & MMF		69.044		108.696
NET RES., MB & MMF		0.345		0.543
NET REVENUE, M$		29.851		1.787
INITIAL PRICE, $		86.470		3.288
INITIAL N.I., PCT.		0.500		0.500

		P.W. %		P.W., M$
LIFE, YRS.	19.58		5.00		12.542
DISCOUNT %	10.00		10.00		10.526
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		9.908
DISCOUNTED PAYOUT, YRS.	0.00		15.00		9.123
UNDISCOUNTED NET/INVEST.	0.00		18.00		8.473
DISCOUNTED NET/INVEST.	0.00		20.00		8.098
RATE-OF-RETURN, PCT.	100.00		30.00		6.709
INITIAL W.I., PCT.	0.625		60.00		4.716
			80.00		4.063
			100.00		3.624

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 60

Torgeson 1-15H S3-10	DATE	: 03/09/2012
163N 100W 3	TIME	: 12:39:13
THREE FORKS	DBS	: MHA
SM ENERGY	SETTINGS	: SETDATA
1PDP	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		68.793		59.676		2.392		2.075		86.470		3.288		206.824		6.822		213.646
12-2013		43.465		35.722		1.511		1.242		86.470		3.288		130.676		4.084		134.760
12-2014		34.604		26.982		1.203		0.938		86.470		3.288		104.037		3.085		107.122
12-2015		29.634		21.928		1.030		0.762		86.470		3.288		89.093		2.507		91.600
12-2016		26.337		18.496		0.916		0.643		86.470		3.288		79.183		2.114		81.297
12-2017		23.945		15.960		0.833		0.555		86.470		3.288		71.989		1.824		73.814
12-2018		22.105		13.984		0.769		0.486		86.470		3.288		66.459		1.599		68.058
12-2019		20.634		12.389		0.717		0.431		86.470		3.288		62.037		1.416		63.453
12-2020		19.423		11.069		0.675		0.385		86.470		3.288		58.395		1.265		59.660
12-2021		18.400		9.953		0.640		0.346		86.470		3.288		55.320		1.138		56.458
12-2022		17.479		8.974		0.608		0.312		86.470		3.288		52.550		1.026		53.576
12-2023		16.605		8.092		0.577		0.281		86.470		3.288		49.922		0.925		50.847
12-2024		15.775		7.297		0.548		0.254		86.470		3.288		47.426		0.834		48.260
12-2025		14.986		6.580		0.521		0.229		86.470		3.288		45.055		0.752		45.807
12-2026		14.237		5.933		0.495		0.206		86.470		3.288		42.802		0.678		43.480
S TOT		386.423		263.034		13.435		9.145		86.470		3.288		1161.767		30.070		1191.837
AFTER		225.571		52.976		7.843		1.842		86.470		3.288		678.172		6.056		684.229
TOTAL		611.994		316.010		21.278		10.987		86.470		3.288		1839.939		36.126		1876.066

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		13.215		10.341		7.364		0.000		0.000		0.000		182.726		182.726		175.291
12-2013		8.335		6.534		5.813		0.000		0.000		0.000		114.078		296.804		274.440
12-2014		6.625		5.202		5.270		0.000		0.000		0.000		90.025		386.829		345.510
12-2015		5.664		4.455		4.966		0.000		0.000		0.000		76.515		463.344		400.403
12-2016		5.027		3.959		4.764		0.000		0.000		0.000		67.548		530.892		444.447
12-2017		4.564		3.599		4.617		0.000		0.000		0.000		61.033		591.925		480.620
12-2018		4.208		3.323		4.504		0.000		0.000		0.000		56.023		647.948		510.802
12-2019		3.923		3.102		4.414		0.000		0.000		0.000		52.014		699.962		536.275
12-2020		3.688		2.920		4.340		0.000		0.000		0.000		48.712		748.674		557.961
12-2021		3.490		2.766		4.277		0.000		0.000		0.000		45.925		794.599		576.546
12-2022		3.312		2.627		4.221		0.000		0.000		0.000		43.415		838.014		592.519
12-2023		3.143		2.496		4.167		0.000		0.000		0.000		41.041		879.055		606.245
12-2024		2.983		2.371		4.117		0.000		0.000		0.000		38.790		917.845		618.039
12-2025		2.831		2.253		4.068		0.000		0.000		0.000		36.655		954.500		628.171
12-2026		2.687		2.140		4.022		0.000		0.000		0.000		34.631		989.130		636.873
S TOT		73.694		58.088		70.925		0.000		0.000		0.000		989.130		989.130		636.873
AFTER		42.271		33.909		124.077		0.000		0.000		0.000		483.972		1473.102		688.732
TOTAL		115.964		91.997		195.002		0.000		0.000		0.000		1473.102		1473.102		688.732

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		669.857		359.083
GROSS CUM., MB & MMF		57.863		43.073
GROSS RES., MB & MMF		611.994		316.010
NET RES., MB & MMF		21.278		10.987
NET REVENUE, M$		1839.939		36.126
INITIAL PRICE, $		86.470		3.288
INITIAL N.I., PCT.		3.477		3.477

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		920.075
DISCOUNT %	10.00		10.00		688.732
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		630.833
DISCOUNTED PAYOUT, YRS.	0.00		15.00		563.928
UNDISCOUNTED NET/INVEST.	0.00		18.00		513.091
DISCOUNTED NET/INVEST.	0.00		20.00		485.409
RATE-OF-RETURN, PCT.	100.00		30.00		390.816
INITIAL W.I., PCT.	4.375		60.00		270.097
			80.00		232.847
			100.00		208.213

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 61

Wolter 1-28H S16-21	DATE	: 03/09/2012
163N 100W 16	TIME	: 12:39:13
THREE FORKS	DBS	: MHA
SM ENERGY	SETTINGS	: SETDATA
1PDP	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		71.416		61.833		0.741		0.642		86.470		3.288		64.107		2.111		66.218
12-2013		46.929		38.910		0.487		0.404		86.470		3.288		42.127		1.328		43.455
12-2014		37.689		29.951		0.391		0.311		86.470		3.288		33.832		1.022		34.855
12-2015		32.404		24.687		0.336		0.256		86.470		3.288		29.088		0.843		29.931
12-2016		28.866		21.083		0.300		0.219		86.470		3.288		25.912		0.720		26.632
12-2017		26.283		18.405		0.273		0.191		86.470		3.288		23.593		0.628		24.221
12-2018		24.285		16.305		0.252		0.169		86.470		3.288		21.800		0.557		22.356
12-2019		22.579		14.535		0.234		0.151		86.470		3.288		20.269		0.496		20.765
12-2020		20.999		12.961		0.218		0.135		86.470		3.288		18.850		0.442		19.292
12-2021		19.529		11.557		0.203		0.120		86.470		3.288		17.530		0.394		17.925
12-2022		18.162		10.305		0.189		0.107		86.470		3.288		16.303		0.352		16.655
12-2023		16.891		9.189		0.175		0.095		86.470		3.288		15.162		0.314		15.476
12-2024		15.708		8.194		0.163		0.085		86.470		3.288		14.101		0.280		14.380
12-2025		14.609		7.306		0.152		0.076		86.470		3.288		13.114		0.249		13.363
12-2026		13.586		6.515		0.141		0.068		86.470		3.288		12.196		0.222		12.418
S TOT		409.934		291.736		4.256		3.029		86.470		3.288		367.984		9.958		377.942
AFTER		164.140		52.429		1.704		0.544		86.470		3.288		147.343		1.790		149.132
TOTAL		574.073		344.165		5.960		3.573		86.470		3.288		515.326		11.748		527.074

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		4.096		3.205		2.090		0.000		0.000		0.000		56.826		56.826		54.477
12-2013		2.688		2.106		1.694		0.000		0.000		0.000		36.967		93.793		86.602
12-2014		2.156		1.692		1.544		0.000		0.000		0.000		29.463		123.256		109.861
12-2015		1.851		1.454		1.459		0.000		0.000		0.000		25.167		148.423		127.915
12-2016		1.647		1.296		1.401		0.000		0.000		0.000		22.288		170.710		142.447
12-2017		1.498		1.180		1.360		0.000		0.000		0.000		20.184		190.895		154.410
12-2018		1.382		1.090		1.327		0.000		0.000		0.000		18.557		209.452		164.407
12-2019		1.284		1.013		1.300		0.000		0.000		0.000		17.168		226.620		172.815
12-2020		1.193		0.942		1.274		0.000		0.000		0.000		15.883		242.503		179.887
12-2021		1.108		0.877		1.250		0.000		0.000		0.000		14.690		257.193		185.833
12-2022		1.030		0.815		1.228		0.000		0.000		0.000		13.582		270.775		190.831
12-2023		0.957		0.758		1.208		0.000		0.000		0.000		12.553		283.328		195.030
12-2024		0.889		0.705		1.188		0.000		0.000		0.000		11.598		294.926		198.557
12-2025		0.826		0.656		1.171		0.000		0.000		0.000		10.711		305.637		201.518
12-2026		0.768		0.610		1.154		0.000		0.000		0.000		9.887		315.524		204.003
S TOT		23.370		18.399		20.648		0.000		0.000		0.000		315.524		315.524		204.003
AFTER		9.215		7.367		33.562		0.000		0.000		0.000		98.988		414.512		216.515
TOTAL		32.585		25.766		54.210		0.000		0.000		0.000		414.512		414.512		216.515

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		670.956		401.490
GROSS CUM., MB & MMF		96.883		57.325
GROSS RES., MB & MMF		574.073		344.165
NET RES., MB & MMF		5.960		3.573
NET REVENUE, M$		515.326		11.748
INITIAL PRICE, $		86.470		3.288
INITIAL N.I., PCT.		1.038		1.038

		P.W. %		P.W., M$
LIFE, YRS.	48.08		5.00		280.910
DISCOUNT %	10.00		10.00		216.515
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		199.426
DISCOUNTED PAYOUT, YRS.	0.00		15.00		179.195
UNDISCOUNTED NET/INVEST.	0.00		18.00		163.494
DISCOUNTED NET/INVEST.	0.00		20.00		154.834
RATE-OF-RETURN, PCT.	100.00		30.00		124.744
INITIAL W.I., PCT.	1.298		60.00		85.652
			80.00		73.556
			100.00		65.572

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 62

Wolter 13-9H S9-4	DATE	: 03/09/2012
163N 100W 9	TIME	: 12:39:13
THREE FORKS	DBS	: MHA
SM ENERGY	SETTINGS	: SETDATA
1PDP	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		70.874		82.858		3.295		3.852		86.470		3.288		284.925		12.666		297.591
12-2013		35.266		38.809		1.640		1.804		86.470		3.288		141.777		5.933		147.709
12-2014		27.217		28.307		1.265		1.316		86.470		3.288		109.416		4.327		113.743
12-2015		22.998		22.614		1.069		1.051		86.470		3.288		92.456		3.457		95.913
12-2016		20.287		18.862		0.943		0.877		86.470		3.288		81.559		2.883		84.442
12-2017		18.356		16.138		0.853		0.750		86.470		3.288		73.794		2.467		76.261
12-2018		16.889		14.041		0.785		0.653		86.470		3.288		67.898		2.146		70.044
12-2019		15.727		12.364		0.731		0.575		86.470		3.288		63.223		1.890		65.114
12-2020		14.775		10.985		0.687		0.511		86.470		3.288		59.399		1.679		61.078
12-2021		13.978		9.827		0.650		0.457		86.470		3.288		56.194		1.502		57.696
12-2022		13.275		8.826		0.617		0.410		86.470		3.288		53.367		1.349		54.716
12-2023		12.611		7.929		0.586		0.369		86.470		3.288		50.698		1.212		51.910
12-2024		11.980		7.124		0.557		0.331		86.470		3.288		48.163		1.089		49.252
12-2025		11.381		6.400		0.529		0.298		86.470		3.288		45.755		0.978		46.734
12-2026		10.812		5.750		0.503		0.267		86.470		3.288		43.467		0.879		44.346
S TOT		316.429		290.836		14.711		13.521		86.470		3.288		1272.092		44.459		1316.550
AFTER		171.316		49.650		7.965		2.308		86.470		3.288		688.716		7.590		696.306
TOTAL		487.745		340.486		22.676		15.830		86.470		3.288		1960.807		52.048		2012.856

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		18.417		14.246		10.135		0.000		0.000		0.000		254.792		254.792		245.661
12-2013		9.140		7.089		7.185		0.000		0.000		0.000		124.295		379.088		353.735
12-2014		7.038		5.471		6.517		0.000		0.000		0.000		94.717		473.805		428.522
12-2015		5.934		4.623		6.168		0.000		0.000		0.000		79.188		552.993		485.338
12-2016		5.224		4.078		5.943		0.000		0.000		0.000		69.197		622.190		530.461
12-2017		4.717		3.690		5.783		0.000		0.000		0.000		62.071		684.261		567.251
12-2018		4.332		3.395		5.662		0.000		0.000		0.000		56.656		740.917		597.775
12-2019		4.027		3.161		5.565		0.000		0.000		0.000		52.360		793.277		623.418
12-2020		3.777		2.970		5.486		0.000		0.000		0.000		48.845		842.122		645.164
12-2021		3.568		2.810		5.420		0.000		0.000		0.000		45.898		888.021		663.739
12-2022		3.383		2.668		5.362		0.000		0.000		0.000		43.302		931.323		679.670
12-2023		3.209		2.535		5.307		0.000		0.000		0.000		40.859		972.182		693.336
12-2024		3.045		2.408		5.255		0.000		0.000		0.000		38.544		1010.726		705.056
12-2025		2.889		2.288		5.205		0.000		0.000		0.000		36.352		1047.078		715.104
12-2026		2.741		2.173		5.158		0.000		0.000		0.000		34.274		1081.352		723.716
S TOT		81.441		63.605		90.153		0.000		0.000		0.000		1081.352		1081.352		723.716
AFTER		43.022		34.436		163.366		0.000		0.000		0.000		455.482		1536.834		773.975
TOTAL		124.463		98.040		253.519		0.000		0.000		0.000		1536.834		1536.834		773.975

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		535.233		386.428
GROSS CUM., MB & MMF		47.488		45.942
GROSS RES., MB & MMF		487.745		340.486
NET RES., MB & MMF		22.676		15.830
NET REVENUE, M$		1960.807		52.048
INITIAL PRICE, $		86.470		3.288
INITIAL N.I., PCT.		4.649		4.649

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		1003.581
DISCOUNT %	10.00		10.00		773.975
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		715.721
DISCOUNTED PAYOUT, YRS.	0.00		15.00		647.954
UNDISCOUNTED NET/INVEST.	0.00		18.00		596.106
DISCOUNTED NET/INVEST.	0.00		20.00		567.731
RATE-OF-RETURN, PCT.	100.00		30.00		469.868
INITIAL W.I., PCT.	5.919		60.00		342.145
			80.00		301.750
			100.00		274.662

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 63

Thomte 8-5 S8-5	DATE	: 03/09/2012
163N 99W 8	TIME	: 12:39:13
THREE FORKS	DBS	: MHA
SAMSON	SETTINGS	: SETDATA
2PNP	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		54.984		48.529		1.372		1.211		86.470		3.288		118.658		3.982		122.640
12-2013		36.905		30.892		0.921		0.771		86.470		3.288		79.642		2.535		82.177
12-2014		28.131		22.258		0.702		0.555		86.470		3.288		60.708		1.826		62.534
12-2015		23.653		17.697		0.590		0.442		86.470		3.288		51.045		1.452		52.497
12-2016		20.809		14.724		0.519		0.367		86.470		3.288		44.908		1.208		46.116
12-2017		18.796		12.578		0.469		0.314		86.470		3.288		40.563		1.032		41.595
12-2018		17.274		10.933		0.431		0.273		86.470		3.288		37.279		0.897		38.176
12-2019		16.071		9.620		0.401		0.240		86.470		3.288		34.683		0.789		35.472
12-2020		15.089		8.543		0.377		0.213		86.470		3.288		32.564		0.701		33.265
12-2021		14.268		7.640		0.356		0.191		86.470		3.288		30.791		0.627		31.418
12-2022		13.548		6.862		0.338		0.171		86.470		3.288		29.238		0.563		29.801
12-2023		12.871		6.166		0.321		0.154		86.470		3.288		27.776		0.506		28.282
12-2024		12.227		5.541		0.305		0.138		86.470		3.288		26.387		0.455		26.842
12-2025		11.616		4.979		0.290		0.124		86.470		3.288		25.068		0.409		25.476
12-2026		11.035		4.474		0.275		0.112		86.470		3.288		23.815		0.367		24.182
S TOT		307.278		211.436		7.669		5.277		86.470		3.288		663.123		17.350		680.474
AFTER		174.846		38.689		4.364		0.966		86.470		3.288		377.327		3.175		380.502
TOTAL		482.123		250.125		12.033		6.242		86.470		3.288		1040.450		20.525		1060.976

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		7.586		5.933		4.355		0.000		0.000		12.717		92.049		92.049		87.135
12-2013		5.083		3.982		3.932		0.000		0.000		0.000		69.181		161.230		147.296
12-2014		3.867		3.035		3.541		0.000		0.000		0.000		52.090		213.320		188.428
12-2015		3.246		2.552		3.342		0.000		0.000		0.000		43.357		256.677		219.537
12-2016		2.852		2.245		3.215		0.000		0.000		0.000		37.804		294.481		244.188
12-2017		2.572		2.028		3.126		0.000		0.000		0.000		33.870		328.350		264.263
12-2018		2.360		1.864		3.058		0.000		0.000		0.000		30.894		359.244		280.908
12-2019		2.193		1.734		3.004		0.000		0.000		0.000		28.541		387.785		294.885
12-2020		2.056		1.628		2.961		0.000		0.000		0.000		26.619		414.404		306.736
12-2021		1.942		1.540		2.924		0.000		0.000		0.000		25.012		439.416		316.859
12-2022		1.842		1.462		2.892		0.000		0.000		0.000		23.605		463.021		325.543
12-2023		1.748		1.389		2.862		0.000		0.000		0.000		22.283		485.304		332.996
12-2024		1.659		1.319		2.833		0.000		0.000		0.000		21.030		506.335		339.390
12-2025		1.574		1.253		2.806		0.000		0.000		0.000		19.842		526.177		344.875
12-2026		1.494		1.191		2.780		0.000		0.000		0.000		18.716		544.893		349.578
S TOT		42.076		33.156		47.632		0.000		0.000		12.717		544.893		544.893		349.578
AFTER		23.506		18.866		87.900		0.000		0.000		0.000		250.229		795.122		377.105
TOTAL		65.582		52.023		135.532		0.000		0.000		12.717		795.122		795.122		377.105

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		482.123		250.125
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		482.123		250.125
NET RES., MB & MMF		12.032		6.242
NET REVENUE, M$		1040.450		20.525
INITIAL PRICE, $		86.470		3.288
INITIAL N.I., PCT.		2.496		2.496

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		502.735
DISCOUNT %	10.00		10.00		377.105
UNDISCOUNTED PAYOUT, YRS.	0.12		12.00		345.251
DISCOUNTED PAYOUT, YRS.	0.13		15.00		308.203
UNDISCOUNTED NET/INVEST.	63.52		18.00		279.860
DISCOUNTED NET/INVEST.	30.89		20.00		264.349
RATE-OF-RETURN, PCT.	100.00		30.00		210.848
INITIAL W.I., PCT.	3.179		60.00		141.039
			80.00		119.001
			100.00		104.258

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 64

Blazer 2-11 S2-11	DATE	: 03/09/2012
163N 98W 2	TIME	: 12:39:13
THREE FORKS	DBS	: MHA
SAMSON	SETTINGS	: SETDATA
4PUD	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		51.162		45.238		0.384		0.339		86.470		3.288		33.189		1.116		34.305
12-2013		38.085		32.032		0.286		0.240		86.470		3.288		24.706		0.790		25.496
12-2014		28.631		22.760		0.215		0.171		86.470		3.288		18.573		0.561		19.135
12-2015		23.947		18.000		0.180		0.135		86.470		3.288		15.535		0.444		15.979
12-2016		21.008		14.933		0.158		0.112		86.470		3.288		13.628		0.368		13.996
12-2017		18.942		12.735		0.142		0.096		86.470		3.288		12.288		0.314		12.602
12-2018		17.387		11.056		0.130		0.083		86.470		3.288		11.279		0.273		11.552
12-2019		16.162		9.720		0.121		0.073		86.470		3.288		10.485		0.240		10.724
12-2020		15.164		8.626		0.114		0.065		86.470		3.288		9.837		0.213		10.050
12-2021		14.331		7.710		0.108		0.058		86.470		3.288		9.297		0.190		9.487
12-2022		13.606		6.924		0.102		0.052		86.470		3.288		8.827		0.171		8.997
12-2023		12.926		6.221		0.097		0.047		86.470		3.288		8.385		0.153		8.539
12-2024		12.280		5.590		0.092		0.042		86.470		3.288		7.966		0.138		8.104
12-2025		11.666		5.023		0.088		0.038		86.470		3.288		7.568		0.124		7.692
12-2026		11.082		4.514		0.083		0.034		86.470		3.288		7.189		0.111		7.301
S TOT		306.379		211.081		2.299		1.584		86.470		3.288		198.753		5.207		203.959
AFTER		175.594		39.036		1.317		0.293		86.470		3.288		113.911		0.963		114.873
TOTAL		481.974		250.117		3.616		1.876		86.470		3.288		312.663		6.170		318.833

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		2.122		1.659		1.178		0.000		0.000		3.751		25.595		25.595		24.054
12-2013		1.577		1.235		1.175		0.000		0.000		0.000		21.509		47.104		42.762
12-2014		1.183		0.929		1.051		0.000		0.000		0.000		15.972		63.075		55.374
12-2015		0.988		0.777		0.990		0.000		0.000		0.000		13.224		76.299		64.863
12-2016		0.865		0.681		0.951		0.000		0.000		0.000		11.499		87.798		72.361
12-2017		0.779		0.614		0.924		0.000		0.000		0.000		10.285		98.083		78.457
12-2018		0.714		0.564		0.903		0.000		0.000		0.000		9.370		107.453		83.505
12-2019		0.663		0.524		0.887		0.000		0.000		0.000		8.650		116.103		87.742
12-2020		0.621		0.492		0.874		0.000		0.000		0.000		8.063		124.165		91.331
12-2021		0.586		0.465		0.863		0.000		0.000		0.000		7.572		131.738		94.396
12-2022		0.556		0.441		0.854		0.000		0.000		0.000		7.146		138.884		97.025
12-2023		0.528		0.419		0.845		0.000		0.000		0.000		6.747		145.630		99.281
12-2024		0.501		0.398		0.836		0.000		0.000		0.000		6.368		151.999		101.218
12-2025		0.475		0.378		0.828		0.000		0.000		0.000		6.010		158.008		102.879
12-2026		0.451		0.359		0.821		0.000		0.000		0.000		5.669		163.678		104.303
S TOT		12.611		9.938		13.982		0.000		0.000		3.751		163.678		163.678		104.303
AFTER		7.097		5.696		25.937		0.000		0.000		0.000		76.144		239.822		112.657
TOTAL		19.708		15.633		39.919		0.000		0.000		3.751		239.822		239.822		112.657

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		481.974		250.117
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		481.974		250.117
NET RES., MB & MMF		3.616		1.876
NET REVENUE, M$		312.663		6.170
INITIAL PRICE, $		86.470		3.288
INITIAL N.I., PCT.		0.750		0.750

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		150.858
DISCOUNT %	10.00		10.00		112.657
UNDISCOUNTED PAYOUT, YRS.	0.13		12.00		102.966
DISCOUNTED PAYOUT, YRS.	0.13		15.00		91.689
UNDISCOUNTED NET/INVEST.	64.93		18.00		83.055
DISCOUNTED NET/INVEST.	31.03		20.00		78.327
RATE-OF-RETURN, PCT.	100.00		30.00		61.994
INITIAL W.I., PCT.	0.938		60.00		40.596
			80.00		33.812
			100.00		29.266

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 65

CHRISTIANSON 15-12	DATE	: 03/09/2012
163N 100W 12	TIME	: 12:39:13
THREE FORKS	DBS	: MHA
AE	SETTINGS	: SETDATA
4PUD	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		69.197		61.265		19.557		17.315		86.470		3.288		1691.068		56.931		1747.999
12-2013		49.986		42.214		14.127		11.931		86.470		3.288		1221.571		39.228		1260.799
12-2014		37.414		29.964		10.574		8.469		86.470		3.288		914.332		27.844		942.176
12-2015		31.241		23.738		8.830		6.709		86.470		3.288		763.489		22.059		785.548
12-2016		27.384		19.744		7.739		5.580		86.470		3.288		669.214		18.347		687.561
12-2017		24.678		16.884		6.974		4.772		86.470		3.288		603.083		15.690		618.773
12-2018		22.644		14.702		6.400		4.155		86.470		3.288		553.378		13.662		567.039
12-2019		21.043		12.965		5.947		3.664		86.470		3.288		514.250		12.048		526.298
12-2020		19.740		11.542		5.579		3.262		86.470		3.288		482.407		10.725		493.133
12-2021		18.652		10.350		5.272		2.925		86.470		3.288		455.836		9.618		465.453
12-2022		17.708		9.325		5.005		2.635		86.470		3.288		432.751		8.665		441.416
12-2023		16.822		8.407		4.754		2.376		86.470		3.288		411.113		7.812		418.925
12-2024		15.981		7.579		4.517		2.142		86.470		3.288		390.558		7.043		397.601
12-2025		15.182		6.833		4.291		1.931		86.470		3.288		371.030		6.350		377.380
12-2026		14.423		6.161		4.076		1.741		86.470		3.288		352.478		5.725		358.203
S TOT		402.094		281.671		113.641		79.607		86.470		3.288		9826.557		261.747		10088.304
AFTER		228.526		54.929		64.587		15.524		86.470		3.288		5584.812		51.043		5635.854
TOTAL		630.620		336.600		178.228		95.131		86.470		3.288		15411.368		312.791		15724.158

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		108.124		84.553		53.553		0.000		0.000		2768.586		-1266.818		-1266.818		-1345.078
12-2013		77.982		61.079		50.395		0.000		0.000		0.000		1071.344		-195.474		-413.204
12-2014		58.270		45.717		44.148		0.000		0.000		0.000		794.042		598.568		213.831
12-2015		48.579		38.174		41.081		0.000		0.000		0.000		657.714		1256.281		685.748
12-2016		42.516		33.461		39.164		0.000		0.000		0.000		572.420		1828.701		1059.022
12-2017		38.260		30.154		37.819		0.000		0.000		0.000		512.539		2341.240		1362.812
12-2018		35.059		27.669		36.808		0.000		0.000		0.000		467.503		2808.743		1614.687
12-2019		32.538		25.712		36.013		0.000		0.000		0.000		432.034		3240.777		1826.273
12-2020		30.486		24.120		35.365		0.000		0.000		0.000		403.161		3643.938		2005.758
12-2021		28.773		22.792		34.825		0.000		0.000		0.000		379.064		4023.001		2159.165
12-2022		27.286		21.638		34.356		0.000		0.000		0.000		358.137		4381.139		2290.924
12-2023		25.894		20.556		33.916		0.000		0.000		0.000		338.560		4719.699		2404.157
12-2024		24.575		19.528		33.498		0.000		0.000		0.000		320.000		5039.699		2501.454
12-2025		23.324		18.551		33.101		0.000		0.000		0.000		302.404		5342.103		2585.042
12-2026		22.138		17.624		32.723		0.000		0.000		0.000		285.718		5627.820		2656.838
S TOT		623.803		491.328		576.765		0.000		0.000		2768.586		5627.820		5627.820		2656.838
AFTER		348.180		279.241		1008.027		0.000		0.000		0.000		4000.407		9628.228		3085.004
TOTAL		971.983		770.568		1584.791		0.000		0.000		2768.586		9628.228		9628.228		3085.004

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		630.620		336.600
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		630.620		336.600
NET RES., MB & MMF		178.228		95.131
NET REVENUE, M$		15411.369		312.791
INITIAL PRICE, $		86.470		3.288
INITIAL N.I., PCT.		28.262		28.262

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		5024.354
DISCOUNT %	10.00		10.00		3085.004
UNDISCOUNTED PAYOUT, YRS.	2.25		12.00		2596.554
DISCOUNTED PAYOUT, YRS.	2.66		15.00		2029.652
UNDISCOUNTED NET/INVEST.	4.48		18.00		1596.551
DISCOUNTED NET/INVEST.	2.11		20.00		1359.660
RATE-OF-RETURN, PCT.	43.16		30.00		542.532
INITIAL W.I., PCT.	35.495		60.00		-526.886
			80.00		-866.182
			100.00		-1093.826

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 66

CODY 16-11 16-11	DATE	: 03/09/2012
163N 101W 11	TIME	: 12:39:13
THREE FORKS	DBS	: MHA
AE	SETTINGS	: SETDATA
4PUD	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		58.321		51.811		14.553		12.928		86.470		3.288		1258.370		42.508		1300.879
12-2013		53.709		45.767		13.402		11.420		86.470		3.288		1158.844		37.549		1196.393
12-2014		38.852		31.391		9.695		7.833		86.470		3.288		838.299		25.754		864.053
12-2015		32.059		24.574		8.000		6.132		86.470		3.288		691.717		20.161		711.878
12-2016		27.928		20.313		6.969		5.069		86.470		3.288		602.584		16.665		619.250
12-2017		25.073		17.305		6.256		4.318		86.470		3.288		540.992		14.198		555.189
12-2018		22.948		15.030		5.726		3.750		86.470		3.288		495.137		12.331		507.468
12-2019		21.286		13.230		5.311		3.301		86.470		3.288		459.278		10.854		470.132
12-2020		19.940		11.761		4.976		2.935		86.470		3.288		430.238		9.649		439.888
12-2021		18.821		10.535		4.696		2.629		86.470		3.288		406.096		8.643		414.739
12-2022		17.860		9.487		4.456		2.367		86.470		3.288		385.353		7.784		393.137
12-2023		16.967		8.553		4.234		2.134		86.470		3.288		366.086		7.017		373.103
12-2024		16.118		7.711		4.022		1.924		86.470		3.288		347.781		6.327		354.108
12-2025		15.313		6.952		3.821		1.735		86.470		3.288		330.392		5.704		336.096
12-2026		14.547		6.268		3.630		1.564		86.470		3.288		313.873		5.143		319.015
S TOT		399.742		280.688		99.746		70.039		86.470		3.288		8625.039		230.289		8855.328
AFTER		230.488		55.885		57.513		13.945		86.470		3.288		4973.128		45.851		5018.979
TOTAL		630.229		336.574		157.259		83.984		86.470		3.288		13598.167		276.139		13874.307

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		80.467		62.919		38.581		0.000		0.000		2074.900		-955.988		-955.988		-991.901
12-2013		73.999		57.942		45.926		0.000		0.000		0.000		1018.526		62.538		-105.550
12-2014		53.439		41.915		39.437		0.000		0.000		0.000		729.263		791.801		470.408
12-2015		44.024		34.586		36.469		0.000		0.000		0.000		596.800		1388.600		898.646
12-2016		38.293		30.129		34.665		0.000		0.000		0.000		516.163		1904.763		1235.249
12-2017		34.329		27.050		33.418		0.000		0.000		0.000		460.393		2365.156		1508.137
12-2018		31.376		24.757		32.489		0.000		0.000		0.000		418.845		2784.002		1733.801
12-2019		29.066		22.964		31.763		0.000		0.000		0.000		386.339		3170.341		1923.011
12-2020		27.194		21.512		31.175		0.000		0.000		0.000		360.006		3530.347		2083.284
12-2021		25.638		20.305		30.687		0.000		0.000		0.000		338.110		3868.457		2220.118
12-2022		24.301		19.268		30.267		0.000		0.000		0.000		319.301		4187.757		2337.590
12-2023		23.062		18.304		29.877		0.000		0.000		0.000		301.860		4489.618		2438.549
12-2024		21.887		17.389		29.506		0.000		0.000		0.000		285.326		4774.944		2525.303
12-2025		20.772		16.520		29.154		0.000		0.000		0.000		269.650		5044.594		2599.837
12-2026		19.716		15.694		28.819		0.000		0.000		0.000		254.786		5299.380		2663.861
S TOT		547.565		431.252		502.231		0.000		0.000		2074.900		5299.380		5299.380		2663.861
AFTER		310.071		248.656		886.960		0.000		0.000		0.000		3573.292		8872.672		3045.929
TOTAL		857.636		679.908		1389.191		0.000		0.000		2074.900		8872.672		8872.672		3045.929

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		630.229		336.574
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		630.229		336.574
NET RES., MB & MMF		157.259		83.984
NET REVENUE, M$		13598.169		276.139
INITIAL PRICE, $		86.470		3.288
INITIAL N.I., PCT.		24.953		24.953

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		4768.728
DISCOUNT %	10.00		10.00		3045.930
UNDISCOUNTED PAYOUT, YRS.	1.94		12.00		2613.433
DISCOUNTED PAYOUT, YRS.	2.18		15.00		2112.753
UNDISCOUNTED NET/INVEST.	5.28		18.00		1731.583
DISCOUNTED NET/INVEST.	2.49		20.00		1523.776
RATE-OF-RETURN, PCT.	55.61		30.00		812.784
INITIAL W.I., PCT.	31.201		60.00		-88.148
			80.00		-358.108
			100.00		-530.973

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 67

COPLAN 1-3	DATE	: 03/09/2012
163N 101W 3	TIME	: 12:39:13
THREE FORKS	DBS	: MHA
AE	SETTINGS	: SETDATA
4PUD	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		52.382		46.615		5.351		4.762		86.470		3.288		462.695		15.657		478.352
12-2013		55.938		47.883		5.714		4.891		86.470		3.288		494.106		16.083		510.189
12-2014		39.638		32.167		4.049		3.286		86.470		3.288		350.126		10.804		360.930
12-2015		32.493		25.016		3.319		2.555		86.470		3.288		287.009		8.402		295.411
12-2016		28.212		20.609		2.882		2.105		86.470		3.288		249.201		6.922		256.124
12-2017		25.278		17.523		2.582		1.790		86.470		3.288		223.284		5.885		229.169
12-2018		23.105		15.199		2.360		1.553		86.470		3.288		204.085		5.105		209.190
12-2019		21.411		13.366		2.187		1.365		86.470		3.288		189.124		4.489		193.613
12-2020		20.043		11.873		2.047		1.213		86.470		3.288		177.038		3.988		181.026
12-2021		18.907		10.629		1.931		1.086		86.470		3.288		167.010		3.570		170.580
12-2022		17.936		9.569		1.832		0.978		86.470		3.288		158.433		3.214		161.648
12-2023		17.040		8.627		1.741		0.881		86.470		3.288		150.511		2.898		153.409
12-2024		16.188		7.778		1.654		0.795		86.470		3.288		142.986		2.613		145.598
12-2025		15.378		7.013		1.571		0.716		86.470		3.288		135.836		2.355		138.192
12-2026		14.609		6.322		1.492		0.646		86.470		3.288		129.045		2.124		131.168
S TOT		398.558		280.190		40.713		28.622		86.470		3.288		3520.490		94.109		3614.599
AFTER		231.475		56.370		23.646		5.758		86.470		3.288		2044.636		18.933		2063.570
TOTAL		630.033		336.560		64.359		34.380		86.470		3.288		5565.126		113.042		5678.168

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		29.589		23.135		14.055		0.000		0.000		854.881		-443.309		-443.309		-443.675
12-2013		31.556		24.705		19.323		0.000		0.000		0.000		434.604		-8.705		-65.356
12-2014		22.323		17.506		16.390		0.000		0.000		0.000		304.712		296.007		175.318
12-2015		18.269		14.350		15.104		0.000		0.000		0.000		247.688		543.695		353.054
12-2016		15.838		12.460		14.333		0.000		0.000		0.000		213.492		757.187		492.280
12-2017		14.170		11.164		13.805		0.000		0.000		0.000		190.030		947.217		604.918
12-2018		12.934		10.204		13.414		0.000		0.000		0.000		172.638		1119.854		697.932
12-2019		11.970		9.456		13.109		0.000		0.000		0.000		159.077		1278.932		775.841
12-2020		11.191		8.852		12.863		0.000		0.000		0.000		148.120		1427.051		841.784
12-2021		10.545		8.350		12.659		0.000		0.000		0.000		139.026		1566.077		898.048
12-2022		9.992		7.922		12.484		0.000		0.000		0.000		131.250		1697.327		946.335
12-2023		9.482		7.526		12.323		0.000		0.000		0.000		124.079		1821.405		987.834
12-2024		8.999		7.149		12.169		0.000		0.000		0.000		117.281		1938.686		1023.493
12-2025		8.541		6.792		12.024		0.000		0.000		0.000		110.835		2049.521		1054.129
12-2026		8.107		6.452		11.885		0.000		0.000		0.000		104.724		2154.246		1080.445
S TOT		223.507		176.024		205.940		0.000		0.000		854.881		2154.246		2154.246		1080.445
AFTER		127.487		102.232		365.615		0.000		0.000		0.000		1468.237		3622.482		1237.464
TOTAL		350.994		278.256		571.555		0.000		0.000		854.881		3622.482		3622.482		1237.464

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		630.033		336.561
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		630.033		336.561
NET RES., MB & MMF		64.359		34.380
NET REVENUE, M$		5565.126		113.042
INITIAL PRICE, $		86.470		3.288
INITIAL N.I., PCT.		10.215		10.215

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		1940.787
DISCOUNT %	10.00		10.00		1237.464
UNDISCOUNTED PAYOUT, YRS.	2.03		12.00		1061.573
DISCOUNTED PAYOUT, YRS.	2.27		15.00		858.559
UNDISCOUNTED NET/INVEST.	5.24		18.00		704.620
DISCOUNTED NET/INVEST.	2.49		20.00		621.001
RATE-OF-RETURN, PCT.	58.61		30.00		337.389
INITIAL W.I., PCT.	12.855		60.00		-10.558
			80.00		-109.184
			100.00		-169.544

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 68

Denali 31-21 S13-24	DATE	: 03/09/2012
163N 98W 13	TIME	: 12:39:13
THREE FORKS	DBS	: MHA
SAMSON	SETTINGS	: SETDATA
4PUD	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		47.153		41.769		0.012		0.010		86.470		3.288		1.013		0.034		1.047
12-2013		39.393		33.291		0.010		0.008		86.470		3.288		0.846		0.027		0.873
12-2014		29.160		23.289		0.007		0.006		86.470		3.288		0.626		0.019		0.645
12-2015		24.252		18.314		0.006		0.005		86.470		3.288		0.521		0.015		0.536
12-2016		21.212		15.149		0.005		0.004		86.470		3.288		0.455		0.012		0.468
12-2017		19.091		12.895		0.005		0.003		86.470		3.288		0.410		0.011		0.420
12-2018		17.502		11.181		0.004		0.003		86.470		3.288		0.376		0.009		0.385
12-2019		16.254		9.821		0.004		0.002		86.470		3.288		0.349		0.008		0.357
12-2020		15.240		8.709		0.004		0.002		86.470		3.288		0.327		0.007		0.334
12-2021		14.396		7.781		0.004		0.002		86.470		3.288		0.309		0.006		0.315
12-2022		13.665		6.986		0.003		0.002		86.470		3.288		0.293		0.006		0.299
12-2023		12.981		6.277		0.003		0.002		86.470		3.288		0.279		0.005		0.284
12-2024		12.332		5.640		0.003		0.001		86.470		3.288		0.265		0.005		0.269
12-2025		11.716		5.068		0.003		0.001		86.470		3.288		0.252		0.004		0.256
12-2026		11.130		4.554		0.003		0.001		86.470		3.288		0.239		0.004		0.243
S TOT		305.478		210.723		0.076		0.052		86.470		3.288		6.560		0.172		6.732
AFTER		176.347		39.385		0.044		0.010		86.470		3.288		3.787		0.032		3.819
TOTAL		481.824		250.108		0.120		0.062		86.470		3.288		10.346		0.204		10.550

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		0.065		0.051		0.036		0.000		0.000		0.125		0.771		0.771		0.721
12-2013		0.054		0.042		0.040		0.000		0.000		0.000		0.737		1.508		1.363
12-2014		0.040		0.031		0.035		0.000		0.000		0.000		0.539		2.046		1.788
12-2015		0.033		0.026		0.033		0.000		0.000		0.000		0.443		2.490		2.106
12-2016		0.029		0.023		0.032		0.000		0.000		0.000		0.384		2.874		2.357
12-2017		0.026		0.020		0.031		0.000		0.000		0.000		0.343		3.217		2.560
12-2018		0.024		0.019		0.030		0.000		0.000		0.000		0.312		3.530		2.729
12-2019		0.022		0.017		0.030		0.000		0.000		0.000		0.288		3.817		2.870
12-2020		0.021		0.016		0.029		0.000		0.000		0.000		0.268		4.086		2.989
12-2021		0.020		0.015		0.029		0.000		0.000		0.000		0.252		4.337		3.091
12-2022		0.018		0.015		0.028		0.000		0.000		0.000		0.237		4.575		3.178
12-2023		0.018		0.014		0.028		0.000		0.000		0.000		0.224		4.799		3.253
12-2024		0.017		0.013		0.028		0.000		0.000		0.000		0.212		5.011		3.318
12-2025		0.016		0.013		0.028		0.000		0.000		0.000		0.200		5.210		3.373
12-2026		0.015		0.012		0.027		0.000		0.000		0.000		0.188		5.399		3.420
S TOT		0.416		0.328		0.464		0.000		0.000		0.125		5.399		5.399		3.420
AFTER		0.236		0.189		0.865		0.000		0.000		0.000		2.529		7.928		3.698
TOTAL		0.652		0.517		1.328		0.000		0.000		0.125		7.928		7.928		3.698

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		481.824		250.108
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		481.824		250.108
NET RES., MB & MMF		0.120		0.062
NET REVENUE, M$		10.346		0.204
INITIAL PRICE, $		86.470		3.288
INITIAL N.I., PCT.		0.025		0.025

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		4.969
DISCOUNT %	10.00		10.00		3.698
UNDISCOUNTED PAYOUT, YRS.	0.14		12.00		3.375
DISCOUNTED PAYOUT, YRS.	0.15		15.00		2.999
UNDISCOUNTED NET/INVEST.	64.42		18.00		2.711
DISCOUNTED NET/INVEST.	31.05		20.00		2.553
RATE-OF-RETURN, PCT.	100.00		30.00		2.009
INITIAL W.I., PCT.	0.031		60.00		1.295
			80.00		1.070
			100.00		0.920

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 69

Jurasin 32-29 S29-32	DATE	: 03/09/2012
163N 100W 29	TIME	: 12:39:13
THREE FORKS	DBS	: MHA
CRESCENT POINT	SETTINGS	: SETDATA
4PUD	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		69.197		61.265		0.336		0.297		86.470		3.288		29.020		0.977		29.997
12-2013		49.986		42.214		0.242		0.205		86.470		3.288		20.963		0.673		21.636
12-2014		37.414		29.964		0.181		0.145		86.470		3.288		15.691		0.478		16.168
12-2015		31.241		23.738		0.152		0.115		86.470		3.288		13.102		0.379		13.481
12-2016		27.384		19.744		0.133		0.096		86.470		3.288		11.484		0.315		11.799
12-2017		24.678		16.884		0.120		0.082		86.470		3.288		10.349		0.269		10.619
12-2018		22.644		14.702		0.110		0.071		86.470		3.288		9.496		0.234		9.731
12-2019		21.043		12.965		0.102		0.063		86.470		3.288		8.825		0.207		9.032
12-2020		19.740		11.542		0.096		0.056		86.470		3.288		8.278		0.184		8.462
12-2021		18.652		10.350		0.090		0.050		86.470		3.288		7.822		0.165		7.987
12-2022		17.708		9.325		0.086		0.045		86.470		3.288		7.426		0.149		7.575
12-2023		16.822		8.407		0.082		0.041		86.470		3.288		7.055		0.134		7.189
12-2024		15.981		7.579		0.078		0.037		86.470		3.288		6.702		0.121		6.823
12-2025		15.182		6.833		0.074		0.033		86.470		3.288		6.367		0.109		6.476
12-2026		14.423		6.161		0.070		0.030		86.470		3.288		6.049		0.098		6.147
S TOT		402.094		281.671		1.950		1.366		86.470		3.288		168.630		4.492		173.122
AFTER		228.526		54.929		1.108		0.266		86.470		3.288		95.839		0.876		96.715
TOTAL		630.620		336.600		3.059		1.633		86.470		3.288		264.469		5.368		269.837

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		1.855		1.451		0.915		0.000		0.000		39.558		-13.782		-13.782		-14.812
12-2013		1.338		1.048		0.861		0.000		0.000		0.000		18.389		4.607		1.183
12-2014		1.000		0.785		0.754		0.000		0.000		0.000		13.630		18.237		11.946
12-2015		0.834		0.655		0.702		0.000		0.000		0.000		11.290		29.527		20.047
12-2016		0.730		0.574		0.669		0.000		0.000		0.000		9.826		39.353		26.454
12-2017		0.657		0.517		0.646		0.000		0.000		0.000		8.799		48.152		31.669
12-2018		0.602		0.475		0.629		0.000		0.000		0.000		8.026		56.177		35.993
12-2019		0.558		0.441		0.615		0.000		0.000		0.000		7.417		63.594		39.626
12-2020		0.523		0.414		0.604		0.000		0.000		0.000		6.921		70.515		42.707
12-2021		0.494		0.391		0.595		0.000		0.000		0.000		6.508		77.023		45.341
12-2022		0.468		0.371		0.587		0.000		0.000		0.000		6.149		83.172		47.603
12-2023		0.444		0.353		0.579		0.000		0.000		0.000		5.813		88.985		49.547
12-2024		0.422		0.335		0.572		0.000		0.000		0.000		5.494		94.479		51.217
12-2025		0.400		0.318		0.565		0.000		0.000		0.000		5.192		99.671		52.652
12-2026		0.380		0.302		0.559		0.000		0.000		0.000		4.906		104.577		53.885
S TOT		10.705		8.432		9.851		0.000		0.000		39.558		104.577		104.577		53.885
AFTER		5.975		4.792		17.217		0.000		0.000		0.000		68.731		173.307		61.239
TOTAL		16.680		13.223		27.068		0.000		0.000		39.558		173.307		173.307		61.239

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		630.620		336.600
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		630.620		336.600
NET RES., MB & MMF		3.059		1.633
NET REVENUE, M$		264.469		5.368
INITIAL PRICE, $		86.470		3.288
INITIAL N.I., PCT.		0.485		0.485

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		94.388
DISCOUNT %	10.00		10.00		61.239
UNDISCOUNTED PAYOUT, YRS.	1.75		12.00		52.911
DISCOUNTED PAYOUT, YRS.	1.93		15.00		43.264
UNDISCOUNTED NET/INVEST.	5.38		18.00		35.913
DISCOUNTED NET/INVEST.	2.56		20.00		31.901
RATE-OF-RETURN, PCT.	61.44		30.00		18.132
INITIAL W.I., PCT.	0.606		60.00		0.439
			80.00		-5.014
			100.00		-8.592

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 70

Lancaster 2-11H S2-11	DATE	: 03/09/2012
162N 102W 2	TIME	: 12:39:13
BAKKEN	DBS	: MHA
CRESCENT POINT	SETTINGS	: SETDATA
4PUD	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		74.233		65.613		3.700		3.270		86.470		3.288		319.903		10.752		330.655
12-2013		48.405		40.697		2.412		2.028		86.470		3.288		208.601		6.669		215.270
12-2014		36.753		29.305		1.832		1.461		86.470		3.288		158.384		4.802		163.186
12-2015		30.856		23.343		1.538		1.163		86.470		3.288		132.971		3.825		136.796
12-2016		27.123		19.471		1.352		0.970		86.470		3.288		116.887		3.191		120.077
12-2017		24.487		16.680		1.220		0.831		86.470		3.288		105.525		2.733		108.258
12-2018		22.496		14.542		1.121		0.725		86.470		3.288		96.946		2.383		99.329
12-2019		20.924		12.836		1.043		0.640		86.470		3.288		90.171		2.103		92.275
12-2020		19.642		11.435		0.979		0.570		86.470		3.288		84.645		1.874		86.519
12-2021		18.570		10.259		0.925		0.511		86.470		3.288		80.025		1.681		81.706
12-2022		17.632		9.245		0.879		0.461		86.470		3.288		75.985		1.515		77.500
12-2023		16.751		8.335		0.835		0.415		86.470		3.288		72.186		1.366		73.552
12-2024		15.913		7.514		0.793		0.374		86.470		3.288		68.577		1.231		69.808
12-2025		15.117		6.775		0.753		0.338		86.470		3.288		65.148		1.110		66.258
12-2026		14.362		6.108		0.716		0.304		86.470		3.288		61.891		1.001		62.891
S TOT		403.263		282.156		20.098		14.062		86.470		3.288		1737.845		46.236		1784.081
AFTER		227.551		54.456		11.341		2.714		86.470		3.288		980.621		8.924		989.545
TOTAL		630.814		336.613		31.438		16.776		86.470		3.288		2718.467		55.159		2773.626

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		20.453		15.995		10.212		0.000		0.000		406.488		-122.493		-122.493		-135.964
12-2013		13.315		10.430		8.707		0.000		0.000		0.000		182.818		60.325		23.024
12-2014		10.092		7.919		7.691		0.000		0.000		0.000		137.484		197.809		131.585
12-2015		8.460		6.649		7.176		0.000		0.000		0.000		114.511		312.320		213.746
12-2016		7.425		5.844		6.851		0.000		0.000		0.000		99.957		412.277		278.927
12-2017		6.694		5.276		6.621		0.000		0.000		0.000		89.667		501.944		332.073
12-2018		6.141		4.847		6.447		0.000		0.000		0.000		81.893		583.837		376.194
12-2019		5.705		4.509		6.310		0.000		0.000		0.000		75.751		659.588		413.292
12-2020		5.349		4.232		6.198		0.000		0.000		0.000		70.740		730.328		444.785
12-2021		5.051		4.001		6.105		0.000		0.000		0.000		66.549		796.877		471.717
12-2022		4.791		3.799		6.023		0.000		0.000		0.000		62.887		859.764		494.853
12-2023		4.546		3.609		5.946		0.000		0.000		0.000		59.450		919.214		514.737
12-2024		4.315		3.429		5.873		0.000		0.000		0.000		56.191		975.406		531.822
12-2025		4.095		3.257		5.804		0.000		0.000		0.000		53.102		1028.507		546.500
12-2026		3.887		3.095		5.738		0.000		0.000		0.000		50.172		1078.680		559.107
S TOT		110.317		86.892		101.704		0.000		0.000		406.488		1078.680		1078.680		559.107
AFTER		61.133		49.031		176.834		0.000		0.000		0.000		702.546		1781.225		634.297
TOTAL		171.451		135.923		278.539		0.000		0.000		406.488		1781.225		1781.225		634.297

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		630.814		336.613
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		630.814		336.613
NET RES., MB & MMF		31.438		16.776
NET REVENUE, M$		2718.467		55.159
INITIAL PRICE, $		86.470		3.288
INITIAL N.I., PCT.		4.984		4.984

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		973.893
DISCOUNT %	10.00		10.00		634.297
UNDISCOUNTED PAYOUT, YRS.	1.67		12.00		548.865
DISCOUNTED PAYOUT, YRS.	1.86		15.00		449.785
UNDISCOUNTED NET/INVEST.	5.38		18.00		374.159
DISCOUNTED NET/INVEST.	2.56		20.00		332.823
RATE-OF-RETURN, PCT.	61.43		30.00		190.441
INITIAL W.I., PCT.	6.230		60.00		4.688
			80.00		-54.107
			100.00		-93.540

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 71

Montclair 1-12 S1-12	DATE	: 03/09/2012
163N 99W 1	TIME	: 12:39:13
THREE FORKS	DBS	: MHA
SAMSON	SETTINGS	: SETDATA
4PUD	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		54.984		48.529		0.702		0.620		86.470		3.288		60.741		2.039		62.779
12-2013		36.905		30.892		0.471		0.395		86.470		3.288		40.769		1.298		42.066
12-2014		28.131		22.258		0.359		0.284		86.470		3.288		31.076		0.935		32.011
12-2015		23.653		17.697		0.302		0.226		86.470		3.288		26.130		0.743		26.873
12-2016		20.809		14.724		0.266		0.188		86.470		3.288		22.988		0.618		23.607
12-2017		18.796		12.578		0.240		0.161		86.470		3.288		20.764		0.528		21.293
12-2018		17.274		10.933		0.221		0.140		86.470		3.288		19.083		0.459		19.542
12-2019		16.071		9.620		0.205		0.123		86.470		3.288		17.754		0.404		18.158
12-2020		15.089		8.543		0.193		0.109		86.470		3.288		16.669		0.359		17.028
12-2021		14.268		7.640		0.182		0.098		86.470		3.288		15.762		0.321		16.083
12-2022		13.548		6.862		0.173		0.088		86.470		3.288		14.967		0.288		15.255
12-2023		12.871		6.166		0.164		0.079		86.470		3.288		14.219		0.259		14.478
12-2024		12.227		5.541		0.156		0.071		86.470		3.288		13.508		0.233		13.740
12-2025		11.616		4.979		0.148		0.064		86.470		3.288		12.832		0.209		13.041
12-2026		11.035		4.474		0.141		0.057		86.470		3.288		12.191		0.188		12.379
S TOT		307.278		211.436		3.926		2.701		86.470		3.288		339.452		8.882		348.334
AFTER		174.846		38.689		2.234		0.494		86.470		3.288		193.153		1.625		194.779
TOTAL		482.123		250.125		6.159		3.196		86.470		3.288		532.606		10.507		543.112

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		3.883		3.037		2.187		0.000		0.000		6.388		47.284		47.284		44.765
12-2013		2.602		2.038		1.975		0.000		0.000		0.000		35.451		82.735		75.594
12-2014		1.980		1.554		1.779		0.000		0.000		0.000		26.699		109.434		96.677
12-2015		1.662		1.306		1.679		0.000		0.000		0.000		22.226		131.660		112.624
12-2016		1.460		1.149		1.615		0.000		0.000		0.000		19.382		151.043		125.263
12-2017		1.317		1.038		1.570		0.000		0.000		0.000		17.368		168.411		135.557
12-2018		1.208		0.954		1.536		0.000		0.000		0.000		15.844		184.255		144.093
12-2019		1.123		0.888		1.509		0.000		0.000		0.000		14.639		198.893		151.263
12-2020		1.053		0.833		1.487		0.000		0.000		0.000		13.655		212.548		157.342
12-2021		0.994		0.788		1.469		0.000		0.000		0.000		12.832		225.380		162.535
12-2022		0.943		0.748		1.453		0.000		0.000		0.000		12.111		237.491		166.991
12-2023		0.895		0.711		1.438		0.000		0.000		0.000		11.434		248.925		170.815
12-2024		0.849		0.675		1.423		0.000		0.000		0.000		10.793		259.718		174.096
12-2025		0.806		0.642		1.410		0.000		0.000		0.000		10.184		269.902		176.912
12-2026		0.765		0.610		1.397		0.000		0.000		0.000		9.608		279.510		179.326
S TOT		21.538		16.973		23.925		0.000		0.000		6.388		279.510		279.510		179.326
AFTER		12.033		9.658		44.152		0.000		0.000		0.000		128.936		408.445		193.477
TOTAL		33.571		26.630		68.078		0.000		0.000		6.388		408.445		408.445		193.477

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		482.123		250.125
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		482.123		250.125
NET RES., MB & MMF		6.159		3.196
NET REVENUE, M$		532.606		10.507
INITIAL PRICE, $		86.470		3.288
INITIAL N.I., PCT.		1.278		1.278

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		258.003
DISCOUNT %	10.00		10.00		193.477
UNDISCOUNTED PAYOUT, YRS.	0.12		12.00		177.128
DISCOUNTED PAYOUT, YRS.	0.12		15.00		158.118
UNDISCOUNTED NET/INVEST.	64.94		18.00		143.577
DISCOUNTED NET/INVEST.	31.53		20.00		135.621
RATE-OF-RETURN, PCT.	100.00		30.00		108.184
INITIAL W.I., PCT.	1.597		60.00		72.393
			80.00		61.096
			100.00		53.539

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 72

Nomad 6-7 S6-7	DATE	: 03/09/2012
163N 99W 6	TIME	: 12:39:14
THREE FORKS	DBS	: MHA
SAMSON	SETTINGS	: SETDATA
4PUD	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		51.162		45.238		5.850		5.173		86.470		3.288		505.837		17.007		522.845
12-2013		38.085		32.032		4.355		3.663		86.470		3.288		376.547		12.043		388.590
12-2014		28.631		22.760		3.274		2.602		86.470		3.288		283.078		8.557		291.634
12-2015		23.947		18.000		2.738		2.058		86.470		3.288		236.762		6.767		243.529
12-2016		21.008		14.933		2.402		1.707		86.470		3.288		207.705		5.614		213.319
12-2017		18.942		12.735		2.166		1.456		86.470		3.288		187.280		4.788		192.068
12-2018		17.387		11.056		1.988		1.264		86.470		3.288		171.907		4.156		176.063
12-2019		16.162		9.720		1.848		1.111		86.470		3.288		159.794		3.654		163.448
12-2020		15.164		8.626		1.734		0.986		86.470		3.288		149.930		3.243		153.173
12-2021		14.331		7.710		1.639		0.882		86.470		3.288		141.694		2.899		144.592
12-2022		13.606		6.924		1.556		0.792		86.470		3.288		134.526		2.603		137.129
12-2023		12.926		6.221		1.478		0.711		86.470		3.288		127.799		2.339		130.138
12-2024		12.280		5.590		1.404		0.639		86.470		3.288		121.410		2.102		123.511
12-2025		11.666		5.023		1.334		0.574		86.470		3.288		115.339		1.888		117.227
12-2026		11.082		4.514		1.267		0.516		86.470		3.288		109.572		1.697		111.269
S TOT		306.379		211.081		35.032		24.135		86.470		3.288		3029.180		79.356		3108.536
AFTER		175.594		39.036		20.078		4.463		86.470		3.288		1736.106		14.676		1750.782
TOTAL		481.974		250.117		55.109		28.598		86.470		3.288		4765.286		94.032		4859.318

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		32.341		25.292		18.175		0.000		0.000		57.871		389.165		389.165		366.604
12-2013		24.035		18.827		18.131		0.000		0.000		0.000		327.597		716.762		651.544
12-2014		18.036		14.154		16.216		0.000		0.000		0.000		243.228		959.990		843.615
12-2015		15.060		11.838		15.267		0.000		0.000		0.000		201.363		1161.354		988.097
12-2016		13.191		10.385		14.672		0.000		0.000		0.000		175.071		1336.425		1102.262
12-2017		11.876		9.364		14.254		0.000		0.000		0.000		156.574		1492.999		1195.067
12-2018		10.885		8.595		13.939		0.000		0.000		0.000		142.644		1635.643		1271.919
12-2019		10.105		7.990		13.690		0.000		0.000		0.000		131.663		1767.307		1336.401
12-2020		9.469		7.496		13.488		0.000		0.000		0.000		122.719		1890.025		1391.035
12-2021		8.938		7.085		13.320		0.000		0.000		0.000		115.250		2005.276		1437.677
12-2022		8.476		6.726		13.173		0.000		0.000		0.000		108.753		2114.029		1477.688
12-2023		8.044		6.390		13.035		0.000		0.000		0.000		102.670		2216.699		1512.027
12-2024		7.634		6.070		12.904		0.000		0.000		0.000		96.903		2313.602		1541.491
12-2025		7.245		5.767		12.780		0.000		0.000		0.000		91.436		2405.038		1566.765
12-2026		6.876		5.479		12.662		0.000		0.000		0.000		86.252		2491.290		1588.439
S TOT		192.210		151.459		215.706		0.000		0.000		57.871		2491.290		2491.290		1588.439
AFTER		108.158		86.805		400.157		0.000		0.000		0.000		1155.661		3646.951		1715.403
TOTAL		300.368		238.264		615.863		0.000		0.000		57.871		3646.950		3646.951		1715.403

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		481.974		250.117
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		481.974		250.117
NET RES., MB & MMF		55.109		28.598
NET REVENUE, M$		4765.285		94.032
INITIAL PRICE, $		86.470		3.288
INITIAL N.I., PCT.		11.434		11.434

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		2295.954
DISCOUNT %	10.00		10.00		1715.403
UNDISCOUNTED PAYOUT, YRS.	0.13		12.00		1568.130
DISCOUNTED PAYOUT, YRS.	0.13		15.00		1396.769
UNDISCOUNTED NET/INVEST.	64.02		18.00		1265.600
DISCOUNTED NET/INVEST.	31.12		20.00		1193.785
RATE-OF-RETURN, PCT.	100.00		30.00		945.883
INITIAL W.I., PCT.	14.468		60.00		621.947
			80.00		519.684
			100.00		451.358

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 73

Olson 15-22 S15-22	DATE	: 03/09/2012
162N 100W 15	TIME	: 12:39:14
THREE FORKS	DBS	: MHA
BAYTEX	SETTINGS	: SETDATA
4PUD	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		83.670		73.708		0.523		0.461		86.470		3.288		45.218		1.515		46.733
12-2013		45.663		38.052		0.285		0.238		86.470		3.288		24.678		0.782		25.460
12-2014		35.531		28.083		0.222		0.176		86.470		3.288		19.202		0.577		19.779
12-2015		30.125		22.592		0.188		0.141		86.470		3.288		16.281		0.464		16.745
12-2016		26.624		18.946		0.166		0.118		86.470		3.288		14.389		0.389		14.778
12-2017		24.118		16.286		0.151		0.102		86.470		3.288		13.034		0.335		13.369
12-2018		22.209		14.232		0.139		0.089		86.470		3.288		12.003		0.292		12.295
12-2019		20.693		12.584		0.129		0.079		86.470		3.288		11.183		0.259		11.442
12-2020		19.450		11.225		0.122		0.070		86.470		3.288		10.512		0.231		10.742
12-2021		18.407		10.081		0.115		0.063		86.470		3.288		9.948		0.207		10.155
12-2022		17.482		9.086		0.109		0.057		86.470		3.288		9.448		0.187		9.635
12-2023		16.608		8.192		0.104		0.051		86.470		3.288		8.976		0.168		9.144
12-2024		15.778		7.386		0.099		0.046		86.470		3.288		8.527		0.152		8.679
12-2025		14.989		6.659		0.094		0.042		86.470		3.288		8.100		0.137		8.237
12-2026		14.239		6.003		0.089		0.038		86.470		3.288		7.695		0.123		7.819
S TOT		405.586		283.114		2.535		1.769		86.470		3.288		219.194		5.818		225.012
AFTER		225.614		53.524		1.410		0.335		86.470		3.288		121.930		1.100		123.030
TOTAL		631.200		336.638		3.945		2.104		86.470		3.288		341.124		6.918		348.042

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		2.891		2.261		1.478		0.000		0.000		0.000		40.104		40.104		38.582
12-2013		1.575		1.234		1.062		0.000		0.000		0.000		21.589		61.693		57.352
12-2014		1.223		0.960		0.951		0.000		0.000		0.000		16.645		78.338		70.493
12-2015		1.036		0.814		0.892		0.000		0.000		0.000		14.004		92.341		80.540
12-2016		0.914		0.719		0.854		0.000		0.000		0.000		12.291		104.632		88.555
12-2017		0.827		0.652		0.826		0.000		0.000		0.000		11.064		115.697		95.113
12-2018		0.760		0.600		0.805		0.000		0.000		0.000		10.130		125.826		100.570
12-2019		0.707		0.559		0.789		0.000		0.000		0.000		9.386		135.213		105.167
12-2020		0.664		0.526		0.775		0.000		0.000		0.000		8.777		143.990		109.074
12-2021		0.628		0.497		0.764		0.000		0.000		0.000		8.266		152.256		112.420
12-2022		0.596		0.472		0.754		0.000		0.000		0.000		7.813		160.069		115.294
12-2023		0.565		0.449		0.744		0.000		0.000		0.000		7.386		167.455		117.764
12-2024		0.536		0.426		0.735		0.000		0.000		0.000		6.981		174.436		119.887
12-2025		0.509		0.405		0.726		0.000		0.000		0.000		6.597		181.033		121.710
12-2026		0.483		0.385		0.718		0.000		0.000		0.000		6.233		187.265		123.276
S TOT		13.913		10.960		12.874		0.000		0.000		0.000		187.265		187.265		123.276
AFTER		7.601		6.097		22.155		0.000		0.000		0.000		87.178		274.443		132.613
TOTAL		21.514		17.056		35.029		0.000		0.000		0.000		274.443		274.443		132.613

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		631.200		336.638
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		631.200		336.638
NET RES., MB & MMF		3.945		2.104
NET REVENUE, M$		341.124		6.918
INITIAL PRICE, $		86.470		3.288
INITIAL N.I., PCT.		0.625		0.625

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		174.531
DISCOUNT %	10.00		10.00		132.613
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		122.093
DISCOUNTED PAYOUT, YRS.	0.00		15.00		109.914
UNDISCOUNTED NET/INVEST.	0.00		18.00		100.637
DISCOUNTED NET/INVEST.	0.00		20.00		95.576
RATE-OF-RETURN, PCT.	100.00		30.00		78.205
INITIAL W.I., PCT.	0.781		60.00		55.766
			80.00		48.739
			100.00		44.052

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 74

Reistad 1-1 S1 E/2	DATE	: 03/09/2012
162N 102W 1	TIME	: 12:39:14
THREE FORKS	DBS	: MHA
MUREX PETROLEUM	SETTINGS	: SETDATA
4PUD	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		83.670		73.708		5.772		5.085		86.470		3.288		499.084		16.718		515.802
12-2013		45.663		38.052		3.150		2.625		86.470		3.288		272.377		8.631		281.007
12-2014		35.531		28.083		2.451		1.937		86.470		3.288		211.938		6.370		218.308
12-2015		30.125		22.592		2.078		1.558		86.470		3.288		179.695		5.124		184.819
12-2016		26.624		18.946		1.837		1.307		86.470		3.288		158.812		4.297		163.109
12-2017		24.118		16.286		1.664		1.123		86.470		3.288		143.863		3.694		147.557
12-2018		22.209		14.232		1.532		0.982		86.470		3.288		132.478		3.228		135.706
12-2019		20.693		12.584		1.427		0.868		86.470		3.288		123.432		2.854		126.286
12-2020		19.450		11.225		1.342		0.774		86.470		3.288		116.019		2.546		118.565
12-2021		18.407		10.081		1.270		0.695		86.470		3.288		109.796		2.286		112.083
12-2022		17.482		9.086		1.206		0.627		86.470		3.288		104.280		2.061		106.341
12-2023		16.608		8.192		1.146		0.565		86.470		3.288		99.066		1.858		100.924
12-2024		15.778		7.386		1.088		0.509		86.470		3.288		94.113		1.675		95.788
12-2025		14.989		6.659		1.034		0.459		86.470		3.288		89.407		1.510		90.917
12-2026		14.239		6.003		0.982		0.414		86.470		3.288		84.937		1.362		86.298
S TOT		405.586		283.114		27.978		19.530		86.470		3.288		2419.295		64.215		2483.510
AFTER		225.614		53.524		15.563		3.692		86.470		3.288		1345.774		12.140		1357.913
TOTAL		631.200		336.638		43.542		23.222		86.470		3.288		3765.069		76.355		3841.423

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		31.905		24.954		16.309		0.000		0.000		0.000		442.634		442.634		425.843
12-2013		17.380		13.619		11.721		0.000		0.000		0.000		238.287		680.921		633.005
12-2014		13.501		10.597		10.498		0.000		0.000		0.000		183.712		864.633		778.053
12-2015		11.429		8.985		9.845		0.000		0.000		0.000		154.560		1019.193		888.942
12-2016		10.086		7.941		9.423		0.000		0.000		0.000		135.660		1154.854		977.401
12-2017		9.124		7.193		9.120		0.000		0.000		0.000		122.120		1276.974		1049.781
12-2018		8.390		6.624		8.890		0.000		0.000		0.000		111.802		1388.776		1110.015
12-2019		7.807		6.172		8.706		0.000		0.000		0.000		103.600		1492.376		1160.752
12-2020		7.330		5.801		8.556		0.000		0.000		0.000		96.878		1589.253		1203.880
12-2021		6.929		5.490		8.431		0.000		0.000		0.000		91.234		1680.487		1240.802
12-2022		6.573		5.214		8.319		0.000		0.000		0.000		86.235		1766.722		1272.528
12-2023		6.238		4.953		8.213		0.000		0.000		0.000		81.519		1848.241		1299.793
12-2024		5.920		4.706		8.113		0.000		0.000		0.000		77.049		1925.290		1323.220
12-2025		5.619		4.470		8.018		0.000		0.000		0.000		72.810		1998.100		1343.345
12-2026		5.333		4.247		7.927		0.000		0.000		0.000		68.791		2066.891		1360.631
S TOT		153.565		120.965		142.089		0.000		0.000		0.000		2066.891		2066.891		1360.631
AFTER		83.891		67.289		244.532		0.000		0.000		0.000		962.202		3029.093		1463.679
TOTAL		237.456		188.253		386.621		0.000		0.000		0.000		3029.093		3029.093		1463.679

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		631.200		336.638
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		631.200		336.638
NET RES., MB & MMF		43.542		23.222
NET REVENUE, M$		3765.069		76.355
INITIAL PRICE, $		86.470		3.288
INITIAL N.I., PCT.		6.898		6.898

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		1926.340
DISCOUNT %	10.00		10.00		1463.679
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		1347.569
DISCOUNTED PAYOUT, YRS.	0.00		15.00		1213.144
UNDISCOUNTED NET/INVEST.	0.00		18.00		1110.755
DISCOUNTED NET/INVEST.	0.00		20.00		1054.891
RATE-OF-RETURN, PCT.	100.00		30.00		863.171
INITIAL W.I., PCT.	8.623		60.00		615.505
			80.00		537.949
			100.00		486.214

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 75

Ridgeway 25-36H S25-36	DATE	: 03/09/2012
163N 101W 25	TIME	: 12:39:14
THREE FORKS	DBS	: MHA
CRESCENT POINT	SETTINGS	: SETDATA
4PUD	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		69.197		61.265		1.038		0.919		86.470		3.288		89.752		3.022		92.774
12-2013		49.986		42.214		0.750		0.633		86.470		3.288		64.834		2.082		66.916
12-2014		37.414		29.964		0.561		0.449		86.470		3.288		48.527		1.478		50.005
12-2015		31.241		23.738		0.469		0.356		86.470		3.288		40.522		1.171		41.692
12-2016		27.384		19.744		0.411		0.296		86.470		3.288		35.518		0.974		36.492
12-2017		24.678		16.884		0.370		0.253		86.470		3.288		32.008		0.833		32.841
12-2018		22.644		14.702		0.340		0.221		86.470		3.288		29.370		0.725		30.095
12-2019		21.043		12.965		0.316		0.194		86.470		3.288		27.293		0.639		27.933
12-2020		19.740		11.542		0.296		0.173		86.470		3.288		25.603		0.569		26.173
12-2021		18.652		10.350		0.280		0.155		86.470		3.288		24.193		0.510		24.704
12-2022		17.708		9.325		0.266		0.140		86.470		3.288		22.968		0.460		23.428
12-2023		16.822		8.407		0.252		0.126		86.470		3.288		21.819		0.415		22.234
12-2024		15.981		7.579		0.240		0.114		86.470		3.288		20.729		0.374		21.102
12-2025		15.182		6.833		0.228		0.103		86.470		3.288		19.692		0.337		20.029
12-2026		14.423		6.161		0.216		0.092		86.470		3.288		18.707		0.304		19.011
S TOT		402.094		281.671		6.031		4.225		86.470		3.288		521.536		13.892		535.428
AFTER		228.526		54.929		3.428		0.824		86.470		3.288		296.409		2.709		299.118
TOTAL		630.620		336.600		9.459		5.049		86.470		3.288		817.946		16.601		834.547

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		5.739		4.488		2.829		0.000		0.000		122.344		-42.625		-42.625		-45.812
12-2013		4.139		3.242		2.662		0.000		0.000		0.000		56.873		14.248		3.658
12-2014		3.093		2.426		2.332		0.000		0.000		0.000		42.154		56.402		36.946
12-2015		2.578		2.026		2.170		0.000		0.000		0.000		34.918		91.320		62.000
12-2016		2.257		1.776		2.069		0.000		0.000		0.000		30.390		121.710		81.817
12-2017		2.031		1.600		1.998		0.000		0.000		0.000		27.212		148.923		97.946
12-2018		1.861		1.469		1.944		0.000		0.000		0.000		24.822		173.744		111.319
12-2019		1.727		1.365		1.902		0.000		0.000		0.000		22.939		196.683		122.553
12-2020		1.618		1.280		1.868		0.000		0.000		0.000		21.406		218.089		132.083
12-2021		1.527		1.210		1.840		0.000		0.000		0.000		20.127		238.216		140.229
12-2022		1.448		1.148		1.815		0.000		0.000		0.000		19.016		257.233		147.225
12-2023		1.374		1.091		1.792		0.000		0.000		0.000		17.977		275.210		153.238
12-2024		1.304		1.036		1.770		0.000		0.000		0.000		16.992		292.202		158.404
12-2025		1.238		0.985		1.749		0.000		0.000		0.000		16.058		308.260		162.843
12-2026		1.175		0.935		1.729		0.000		0.000		0.000		15.172		323.433		166.655
S TOT		33.108		26.077		30.467		0.000		0.000		122.344		323.433		323.433		166.655
AFTER		18.479		14.820		53.249		0.000		0.000		0.000		212.570		536.002		189.398
TOTAL		51.587		40.897		83.716		0.000		0.000		122.344		536.002		536.002		189.398

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		630.620		336.600
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		630.620		336.600
NET RES., MB & MMF		9.459		5.049
NET REVENUE, M$		817.946		16.601
INITIAL PRICE, $		86.470		3.288
INITIAL N.I., PCT.		1.500		1.500

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		291.921
DISCOUNT %	10.00		10.00		189.398
UNDISCOUNTED PAYOUT, YRS.	1.75		12.00		163.643
DISCOUNTED PAYOUT, YRS.	1.93		15.00		133.808
UNDISCOUNTED NET/INVEST.	5.38		18.00		111.071
DISCOUNTED NET/INVEST.	2.56		20.00		98.662
RATE-OF-RETURN, PCT.	61.44		30.00		56.079
INITIAL W.I., PCT.	1.875		60.00		1.357
			80.00		-15.507
			100.00		-26.573

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 76

Titan 36-25 S36-25	DATE	: 03/09/2012
163N 99W 36	TIME	: 12:39:14
THREE FORKS	DBS	: MHA
SAMSON	SETTINGS	: SETDATA
4PUD	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		58.642		51.666		0.379		0.334		86.470		3.288		32.742		1.097		33.838
12-2013		35.832		29.853		0.231		0.193		86.470		3.288		20.006		0.634		20.639
12-2014		27.656		21.780		0.179		0.141		86.470		3.288		15.441		0.462		15.903
12-2015		23.370		17.404		0.151		0.112		86.470		3.288		13.048		0.369		13.418
12-2016		20.616		14.519		0.133		0.094		86.470		3.288		11.511		0.308		11.819
12-2017		18.654		12.425		0.120		0.080		86.470		3.288		10.415		0.264		10.679
12-2018		17.164		10.813		0.111		0.070		86.470		3.288		9.583		0.230		9.812
12-2019		15.982		9.523		0.103		0.061		86.470		3.288		8.923		0.202		9.125
12-2020		15.015		8.462		0.097		0.055		86.470		3.288		8.383		0.180		8.563
12-2021		14.205		7.572		0.092		0.049		86.470		3.288		7.931		0.161		8.092
12-2022		13.490		6.801		0.087		0.044		86.470		3.288		7.532		0.144		7.676
12-2023		12.816		6.111		0.083		0.039		86.470		3.288		7.155		0.130		7.285
12-2024		12.175		5.491		0.079		0.035		86.470		3.288		6.798		0.117		6.914
12-2025		11.566		4.934		0.075		0.032		86.470		3.288		6.458		0.105		6.563
12-2026		10.988		4.434		0.071		0.029		86.470		3.288		6.135		0.094		6.229
S TOT		308.172		211.787		1.990		1.367		86.470		3.288		172.061		4.496		176.557
AFTER		174.100		38.346		1.124		0.248		86.470		3.288		97.204		0.814		98.019
TOTAL		482.272		250.133		3.114		1.615		86.470		3.288		269.265		5.310		274.575

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		2.093		1.637		1.195		0.000		0.000		3.228		25.685		25.685		24.436
12-2013		1.277		1.000		0.986		0.000		0.000		0.000		17.377		43.061		39.545
12-2014		0.984		0.772		0.894		0.000		0.000		0.000		13.254		56.315		50.010
12-2015		0.830		0.652		0.845		0.000		0.000		0.000		11.090		67.406		57.967
12-2016		0.731		0.576		0.814		0.000		0.000		0.000		9.698		77.104		64.291
12-2017		0.660		0.521		0.792		0.000		0.000		0.000		8.706		85.810		69.451
12-2018		0.607		0.479		0.775		0.000		0.000		0.000		7.952		93.761		73.735
12-2019		0.564		0.446		0.762		0.000		0.000		0.000		7.353		101.115		77.336
12-2020		0.529		0.419		0.751		0.000		0.000		0.000		6.864		107.979		80.392
12-2021		0.500		0.397		0.742		0.000		0.000		0.000		6.453		114.432		83.004
12-2022		0.474		0.377		0.734		0.000		0.000		0.000		6.092		120.524		85.245
12-2023		0.450		0.358		0.726		0.000		0.000		0.000		5.751		126.275		87.169
12-2024		0.427		0.340		0.719		0.000		0.000		0.000		5.428		131.703		88.819
12-2025		0.406		0.323		0.712		0.000		0.000		0.000		5.122		136.826		90.235
12-2026		0.385		0.307		0.705		0.000		0.000		0.000		4.832		141.658		91.449
S TOT		10.917		8.603		12.151		0.000		0.000		3.228		141.658		141.658		91.449
AFTER		6.055		4.860		22.306		0.000		0.000		0.000		64.797		206.454		98.565
TOTAL		16.972		13.463		34.457		0.000		0.000		3.228		206.454		206.454		98.565

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		482.272		250.133
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		482.272		250.133
NET RES., MB & MMF		3.114		1.615
NET REVENUE, M$		269.265		5.310
INITIAL PRICE, $		86.470		3.288
INITIAL N.I., PCT.		0.646		0.646

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		130.929
DISCOUNT %	10.00		10.00		98.565
UNDISCOUNTED PAYOUT, YRS.	0.11		12.00		90.371
DISCOUNTED PAYOUT, YRS.	0.12		15.00		80.850
UNDISCOUNTED NET/INVEST.	64.95		18.00		73.573
DISCOUNTED NET/INVEST.	31.53		20.00		69.593
RATE-OF-RETURN, PCT.	100.00		30.00		55.885
INITIAL W.I., PCT.	0.807		60.00		38.050
			80.00		32.429
			100.00		28.668

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 77

UNNAMED 1-12 1-12	DATE	: 03/09/2012
163N 100W 1	TIME	: 12:39:14
THREE FORKS	DBS	: MHA
SM ENERGY	SETTINGS	: SETDATA
4PUD	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		63.907		56.677		5.750		5.099		86.470		3.288		497.179		16.766		513.945
12-2013		51.741		43.892		4.655		3.949		86.470		3.288		402.528		12.984		415.512
12-2014		38.112		30.658		3.429		2.758		86.470		3.288		296.501		9.069		305.571
12-2015		31.642		24.148		2.847		2.173		86.470		3.288		246.165		7.144		253.308
12-2016		27.652		20.024		2.488		1.802		86.470		3.288		215.121		5.924		221.044
12-2017		24.873		17.092		2.238		1.538		86.470		3.288		193.504		5.056		198.560
12-2018		22.794		14.864		2.051		1.337		86.470		3.288		177.332		4.397		181.729
12-2019		21.163		13.096		1.904		1.178		86.470		3.288		164.643		3.874		168.518
12-2020		19.839		11.651		1.785		1.048		86.470		3.288		154.342		3.447		157.788
12-2021		18.736		10.442		1.686		0.939		86.470		3.288		145.762		3.089		148.851
12-2022		17.784		9.406		1.600		0.846		86.470		3.288		138.351		2.782		141.133
12-2023		16.894		8.480		1.520		0.763		86.470		3.288		131.433		2.508		133.942
12-2024		16.050		7.645		1.444		0.688		86.470		3.288		124.862		2.262		127.123
12-2025		15.247		6.893		1.372		0.620		86.470		3.288		118.619		2.039		120.658
12-2026		14.485		6.214		1.303		0.559		86.470		3.288		112.688		1.838		114.526
S TOT		400.920		281.182		36.071		25.298		86.470		3.288		3119.031		83.179		3202.210
AFTER		229.505		55.405		20.648		4.985		86.470		3.288		1785.471		16.390		1801.861
TOTAL		630.425		336.587		56.719		30.283		86.470		3.288		4904.502		99.569		5004.071

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		31.791		24.859		15.594		0.000		0.000		740.176		-298.474		-298.474		-311.872
12-2013		25.700		20.126		16.385		0.000		0.000		0.000		353.301		54.827		-4.497
12-2014		18.898		14.825		14.220		0.000		0.000		0.000		257.627		312.454		198.958
12-2015		15.665		12.308		13.193		0.000		0.000		0.000		212.143		524.597		351.177
12-2016		13.669		10.756		12.559		0.000		0.000		0.000		184.061		708.658		471.205
12-2017		12.278		9.675		12.118		0.000		0.000		0.000		164.490		873.148		568.702
12-2018		11.236		8.867		11.787		0.000		0.000		0.000		149.839		1022.987		649.431
12-2019		10.419		8.232		11.528		0.000		0.000		0.000		138.338		1161.325		717.182
12-2020		9.755		7.717		11.318		0.000		0.000		0.000		128.999		1290.324		774.612
12-2021		9.202		7.288		11.143		0.000		0.000		0.000		121.218		1411.542		823.669
12-2022		8.724		6.918		10.992		0.000		0.000		0.000		114.500		1526.042		865.793
12-2023		8.279		6.572		10.850		0.000		0.000		0.000		108.241		1634.282		901.995
12-2024		7.857		6.243		10.716		0.000		0.000		0.000		102.307		1736.589		933.102
12-2025		7.457		5.931		10.589		0.000		0.000		0.000		96.681		1833.270		959.825
12-2026		7.078		5.634		10.468		0.000		0.000		0.000		91.346		1924.615		982.779
S TOT		198.007		155.952		183.460		0.000		0.000		740.176		1924.615		1924.615		982.779
AFTER		111.318		89.274		322.309		0.000		0.000		0.000		1278.960		3203.576		1119.666
TOTAL		309.325		245.225		505.769		0.000		0.000		740.176		3203.575		3203.576		1119.666

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		630.425		336.587
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		630.425		336.587
NET RES., MB & MMF		56.719		30.283
NET REVENUE, M$		4904.501		99.569
INITIAL PRICE, $		86.470		3.288
INITIAL N.I., PCT.		8.997		8.997

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		1735.661
DISCOUNT %	10.00		10.00		1119.666
UNDISCOUNTED PAYOUT, YRS.	1.84		12.00		965.116
DISCOUNTED PAYOUT, YRS.	2.02		15.00		786.281
UNDISCOUNTED NET/INVEST.	5.33		18.00		650.207
DISCOUNTED NET/INVEST.	2.54		20.00		576.054
RATE-OF-RETURN, PCT.	60.31		30.00		322.545
INITIAL W.I., PCT.	11.344		60.00		1.680
			80.00		-94.543
			100.00		-156.287

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 78

Willoch 1-16H S16-21	DATE	: 03/09/2012
160N 97W 16	TIME	: 12:39:14
THREE FORKS	DBS	: MHA
CONTINENTAL	SETTINGS	: SETDATA
4PUD	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		62.157		54.665		1.247		1.097		86.470		3.288		107.847		3.607		111.454
12-2013		34.850		28.898		0.699		0.580		86.470		3.288		60.467		1.907		62.374
12-2014		27.205		21.325		0.546		0.428		86.470		3.288		47.202		1.407		48.609
12-2015		23.097		17.121		0.463		0.344		86.470		3.288		40.076		1.130		41.205
12-2016		20.428		14.320		0.410		0.287		86.470		3.288		35.445		0.945		36.390
12-2017		18.514		12.275		0.372		0.246		86.470		3.288		32.124		0.810		32.934
12-2018		17.055		10.694		0.342		0.215		86.470		3.288		29.592		0.706		30.297
12-2019		15.894		9.426		0.319		0.189		86.470		3.288		27.578		0.622		28.200
12-2020		14.943		8.382		0.300		0.168		86.470		3.288		25.926		0.553		26.479
12-2021		14.143		7.504		0.284		0.151		86.470		3.288		24.539		0.495		25.034
12-2022		13.433		6.741		0.270		0.135		86.470		3.288		23.307		0.445		23.752
12-2023		12.761		6.057		0.256		0.122		86.470		3.288		22.142		0.400		22.541
12-2024		12.123		5.443		0.243		0.109		86.470		3.288		21.035		0.359		21.394
12-2025		11.517		4.891		0.231		0.098		86.470		3.288		19.983		0.323		20.306
12-2026		10.941		4.395		0.220		0.088		86.470		3.288		18.984		0.290		19.274
S TOT		309.062		212.136		6.202		4.257		86.470		3.288		536.247		13.996		550.242
AFTER		173.357		38.006		3.479		0.763		86.470		3.288		300.788		2.507		303.295
TOTAL		482.420		250.142		9.680		5.019		86.470		3.288		837.034		16.503		853.537

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		6.894		5.392		3.989		0.000		0.000		0.000		95.179		95.179		91.519
12-2013		3.858		3.023		3.030		0.000		0.000		0.000		52.463		147.642		137.129
12-2014		3.006		2.360		2.761		0.000		0.000		0.000		40.482		188.124		169.091
12-2015		2.548		2.004		2.617		0.000		0.000		0.000		34.036		222.160		193.510
12-2016		2.250		1.772		2.523		0.000		0.000		0.000		29.844		252.004		212.971
12-2017		2.036		1.606		2.456		0.000		0.000		0.000		26.835		278.839		228.876
12-2018		1.873		1.480		2.405		0.000		0.000		0.000		24.540		303.379		242.097
12-2019		1.743		1.379		2.364		0.000		0.000		0.000		22.713		326.092		253.220
12-2020		1.637		1.296		2.331		0.000		0.000		0.000		21.216		347.308		262.665
12-2021		1.547		1.227		2.303		0.000		0.000		0.000		19.957		367.265		270.742
12-2022		1.468		1.165		2.278		0.000		0.000		0.000		18.841		386.106		277.674
12-2023		1.393		1.107		2.254		0.000		0.000		0.000		17.787		403.893		283.623
12-2024		1.322		1.052		2.232		0.000		0.000		0.000		16.788		420.681		288.727
12-2025		1.255		0.999		2.210		0.000		0.000		0.000		15.841		436.522		293.106
12-2026		1.191		0.949		2.190		0.000		0.000		0.000		14.943		451.466		296.861
S TOT		34.023		26.812		37.941		0.000		0.000		0.000		451.466		451.466		296.861
AFTER		18.737		15.039		69.294		0.000		0.000		0.000		200.225		651.691		318.859
TOTAL		52.760		41.852		107.235		0.000		0.000		0.000		651.691		651.691		318.859

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		482.420		250.142
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		482.420		250.142
NET RES., MB & MMF		9.680		5.019
NET REVENUE, M$		837.034		16.503
INITIAL PRICE, $		86.470		3.288
INITIAL N.I., PCT.		2.007		2.007

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		418.619
DISCOUNT %	10.00		10.00		318.859
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		293.634
DISCOUNTED PAYOUT, YRS.	0.00		15.00		264.346
UNDISCOUNTED NET/INVEST.	0.00		18.00		241.984
DISCOUNTED NET/INVEST.	0.00		20.00		229.767
RATE-OF-RETURN, PCT.	100.00		30.00		187.765
INITIAL W.I., PCT.	2.508		60.00		133.401
			80.00		116.372
			100.00		105.017

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 79

Wolter 15-8H S5-8	DATE	: 03/09/2012
163N 100W 5	TIME	: 12:39:14
THREE FORKS	DBS	: MHA
SM ENERGY	SETTINGS	: SETDATA
4PUD	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		79.048		69.753		0.957		0.844		86.470		3.288		82.755		2.777		85.532
12-2013		46.972		39.317		0.569		0.476		86.470		3.288		49.175		1.565		50.740
12-2014		36.126		28.680		0.437		0.347		86.470		3.288		37.820		1.142		38.962
12-2015		30.484		22.961		0.369		0.278		86.470		3.288		31.913		0.914		32.827
12-2016		26.870		19.205		0.325		0.233		86.470		3.288		28.130		0.765		28.895
12-2017		24.300		16.481		0.294		0.200		86.470		3.288		25.440		0.656		26.096
12-2018		22.351		14.386		0.271		0.174		86.470		3.288		23.400		0.573		23.972
12-2019		20.807		12.709		0.252		0.154		86.470		3.288		21.783		0.506		22.289
12-2020		19.545		11.329		0.237		0.137		86.470		3.288		20.462		0.451		20.913
12-2021		18.488		10.169		0.224		0.123		86.470		3.288		19.355		0.405		19.760
12-2022		17.557		9.165		0.213		0.111		86.470		3.288		18.380		0.365		18.745
12-2023		16.679		8.263		0.202		0.100		86.470		3.288		17.461		0.329		17.790
12-2024		15.845		7.450		0.192		0.090		86.470		3.288		16.588		0.297		16.885
12-2025		15.053		6.716		0.182		0.081		86.470		3.288		15.759		0.267		16.026
12-2026		14.300		6.055		0.173		0.073		86.470		3.288		14.971		0.241		15.212
S TOT		404.427		282.637		4.896		3.422		86.470		3.288		423.392		11.251		434.643
AFTER		226.580		53.988		2.743		0.654		86.470		3.288		237.205		2.149		239.355
TOTAL		631.007		336.626		7.640		4.076		86.470		3.288		660.597		13.400		673.998

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		5.291		4.138		2.725		0.000		0.000		27.761		45.617		45.617		42.484
12-2013		3.138		2.459		2.125		0.000		0.000		0.000		43.018		88.635		79.888
12-2014		2.410		1.891		1.890		0.000		0.000		0.000		32.771		121.406		105.763
12-2015		2.030		1.596		1.769		0.000		0.000		0.000		27.433		148.839		125.446
12-2016		1.787		1.407		1.691		0.000		0.000		0.000		24.011		172.850		141.103
12-2017		1.614		1.272		1.635		0.000		0.000		0.000		21.575		194.425		153.890
12-2018		1.482		1.170		1.593		0.000		0.000		0.000		19.727		214.152		164.518
12-2019		1.378		1.089		1.560		0.000		0.000		0.000		18.262		232.414		173.462
12-2020		1.293		1.023		1.532		0.000		0.000		0.000		17.064		249.478		181.059
12-2021		1.221		0.968		1.510		0.000		0.000		0.000		16.061		265.539		187.559
12-2022		1.159		0.919		1.490		0.000		0.000		0.000		15.178		280.717		193.143
12-2023		1.100		0.873		1.471		0.000		0.000		0.000		14.347		295.064		197.941
12-2024		1.044		0.829		1.453		0.000		0.000		0.000		13.559		308.623		202.064
12-2025		0.990		0.788		1.435		0.000		0.000		0.000		12.812		321.436		205.605
12-2026		0.940		0.749		1.419		0.000		0.000		0.000		12.104		333.540		208.647
S TOT		26.876		21.170		25.297		0.000		0.000		27.761		333.540		333.540		208.647
AFTER		14.787		11.860		43.758		0.000		0.000		0.000		168.949		502.489		226.763
TOTAL		41.663		33.030		69.055		0.000		0.000		27.761		502.489		502.489		226.763

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		631.007		336.625
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		631.007		336.625
NET RES., MB & MMF		7.640		4.076
NET REVENUE, M$		660.597		13.400
INITIAL PRICE, $		86.470		3.288
INITIAL N.I., PCT.		1.211		1.211

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		308.405
DISCOUNT %	10.00		10.00		226.763
UNDISCOUNTED PAYOUT, YRS.	0.38		12.00		206.237
DISCOUNTED PAYOUT, YRS.	0.40		15.00		182.448
UNDISCOUNTED NET/INVEST.	19.10		18.00		164.305
DISCOUNTED NET/INVEST.	9.17		20.00		154.395
RATE-OF-RETURN, PCT.	100.00		30.00		120.312
INITIAL W.I., PCT.	1.542		60.00		76.027
			80.00		62.067
			100.00		52.720

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 80

Yukon 12-1 S1-12	DATE	: 03/09/2012
163N 98W 1	TIME	: 12:39:14
THREE FORKS	DBS	: MHA
SAMSON	SETTINGS	: SETDATA
4PUD	SCENARIO	: MHA12SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		58.321		51.811		0.583		0.518		86.470		3.288		50.430		1.704		52.134
12-2013		53.709		45.767		0.537		0.458		86.470		3.288		46.442		1.505		47.947
12-2014		38.852		31.391		0.389		0.314		86.470		3.288		33.596		1.032		34.628
12-2015		32.059		24.574		0.321		0.246		86.470		3.288		27.721		0.808		28.529
12-2016		27.928		20.313		0.279		0.203		86.470		3.288		24.149		0.668		24.817
12-2017		25.073		17.305		0.251		0.173		86.470		3.288		21.681		0.569		22.250
12-2018		22.948		15.030		0.229		0.150		86.470		3.288		19.843		0.494		20.337
12-2019		21.286		13.230		0.213		0.132		86.470		3.288		18.406		0.435		18.841
12-2020		19.940		11.761		0.199		0.118		86.470		3.288		17.242		0.387		17.629
12-2021		18.821		10.535		0.188		0.105		86.470		3.288		16.275		0.346		16.621
12-2022		17.860		9.487		0.179		0.095		86.470		3.288		15.443		0.312		15.755
12-2023		16.967		8.553		0.170		0.086		86.470		3.288		14.671		0.281		14.952
12-2024		16.118		7.711		0.161		0.077		86.470		3.288		13.938		0.254		14.191
12-2025		15.313		6.952		0.153		0.070		86.470		3.288		13.241		0.229		13.469
12-2026		14.547		6.268		0.145		0.063		86.470		3.288		12.579		0.206		12.785
S TOT		399.742		280.688		3.997		2.807		86.470		3.288		345.656		9.229		354.885
AFTER		230.488		55.885		2.305		0.559		86.470		3.288		199.303		1.838		201.140
TOTAL		630.229		336.574		6.302		3.366		86.470		3.288		544.959		11.067		556.026

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		3.225		2.522		1.546		0.000		0.000		5.000		39.842		39.842		37.249
12-2013		2.966		2.322		1.840		0.000		0.000		0.000		40.819		80.661		72.770
12-2014		2.142		1.680		1.580		0.000		0.000		0.000		29.226		109.887		95.853
12-2015		1.764		1.386		1.461		0.000		0.000		0.000		23.918		133.805		113.015
12-2016		1.535		1.207		1.389		0.000		0.000		0.000		20.686		154.491		126.505
12-2017		1.376		1.084		1.339		0.000		0.000		0.000		18.451		172.943		137.442
12-2018		1.257		0.992		1.302		0.000		0.000		0.000		16.786		189.729		146.486
12-2019		1.165		0.920		1.273		0.000		0.000		0.000		15.483		205.212		154.069
12-2020		1.090		0.862		1.249		0.000		0.000		0.000		14.428		219.640		160.492
12-2021		1.027		0.814		1.229		0.000		0.000		0.000		13.550		233.190		165.976
12-2022		0.974		0.772		1.213		0.000		0.000		0.000		12.797		245.987		170.684
12-2023		0.924		0.734		1.197		0.000		0.000		0.000		12.098		258.085		174.730
12-2024		0.877		0.697		1.182		0.000		0.000		0.000		11.435		269.520		178.207
12-2025		0.832		0.662		1.168		0.000		0.000		0.000		10.807		280.327		181.194
12-2026		0.790		0.629		1.155		0.000		0.000		0.000		10.211		290.538		183.760
S TOT		21.944		17.283		20.120		0.000		0.000		5.000		290.538		290.538		183.760
AFTER		12.426		9.965		35.534		0.000		0.000		0.000		143.215		433.753		199.073
TOTAL		34.371		27.248		55.654		0.000		0.000		5.000		433.753		433.753		199.073

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		630.229		336.574
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		630.229		336.574
NET RES., MB & MMF		6.302		3.366
NET REVENUE, M$		544.959		11.067
INITIAL PRICE, $		86.470		3.288
INITIAL N.I., PCT.		1.000		1.000

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		268.680
DISCOUNT %	10.00		10.00		199.073
UNDISCOUNTED PAYOUT, YRS.	0.11		12.00		181.523
DISCOUNTED PAYOUT, YRS.	0.12		15.00		161.141
UNDISCOUNTED NET/INVEST.	87.75		18.00		145.557
DISCOUNTED NET/INVEST.	42.10		20.00		137.029
RATE-OF-RETURN, PCT.	100.00		30.00		107.590
INITIAL W.I., PCT.	1.250		60.00		69.082
			80.00		56.933
			100.00		48.834

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 81

Spyglass Area

Sproule Pricing

American Eagle Energy
Reserves and Economics
Spyglass
Sproule Pricing Effective 01/2012

Reserve Cat	Well		Life		WI (%)		NRI (%)		Start		Gross Oil (Mbbl)		Gross Gas (MMCF)		Net Oil (Mbbl)		Net Gas (MMCF)		Net Revenue (M$)		Taxes (M$)		Operating Expense (M$)		Investment (M$)		Un-discounted NCF(M$)		Discounted NCF @ 10% (M$)
1PDP		Bagley 4-30H		47.4		3.87217		3.04970		01/2012		536.9		329.7		16.4		10.1		1,857.7		205.2		246.2		0.0		1,406.3		666.2
1PDP		Gerhardsen 1-10H		50.0		2.36907		1.89526		12/2011		474.5		240.0		9.0		4.5		1,079.8		119.6		160.0		0.0		800.2		323.2
1PDP		Legaard 4-25H		50.0		3.68594		2.91963		01/2012		432.1		224.6		12.6		6.6		1,498.9		166.0		246.8		0.0		1,086.1		473.0
1PDP		Mustang 7-6		50.0		0.32410		0.25928		01/2012		482.4		250.1		1.3		0.6		149.4		16.5		21.9		0.0		110.9		46.2
1PDP		Nielsen 1-12H		30.6		0.45697		0.36557		12/2011		150.6		94.8		0.6		0.3		59.1		6.5		14.7		0.0		37.9		21.8
1PDP		Riede 4-14H		40.3		0.34247		0.25594		01/2012		347.6		219.9		0.9		0.6		98.3		10.9		16.7		0.0		70.7		37.3
1PDP		Rostad 9-33H		20.9		0.62500		0.50000		12/2011		70.9		109.9		0.4		0.5		38.0		4.1		15.5		0.0		18.4		11.8
1PDP		Torgeson 1-15H		50.0		4.37539		3.47689		01/2012		612.0		316.0		21.3		11.0		2,556.7		283.1		303.9		0.0		1,969.7		776.4
1PDP		Wolter 1-28H		48.8		1.29766		1.03813		01/2012		574.8		344.3		6.0		3.6		679.8		75.1		85.3		0.0		519.4		241.7
1PDP		Wolter 13-9H		50.0		5.91941		4.64919		01/2012		487.7		340.5		22.7		15.8		2,714.2		299.7		400.9		0.0		2,013.6		866.0
		TOTAL PDP										4,169.6		2,469.9		91.0		53.7		10,732.0		1,186.9		1,511.8		0.0		8,033.3		3,463.5
2PNP		Thomte 8-5		50.0		3.17928		2.49573		03/2012		482.1		250.1		12.0		6.2		1,440.0		159.5		214.7		12.7		1,053.2		425.0
		TOTAL PNP										482.1		250.1		12.0		6.2		1,440.0		159.5		214.7		12.7		1,053.2		425.0
4PUD		Blazer 2-11		50.0		0.93777		0.75022		04/2012		482.0		250.1		3.6		1.9		433.2		48.0		63.3		3.8		318.2		127.1
4PUD		CHRISTIANSON		50.0		35.49470		28.26233		04/2012		630.6		336.6		178.2		95.1		21,343.1		2,362.6		2,468.5		2,768.6		13,743.4		3,814.0
4PUD		CODY 16-11		50.0		31.20150		24.95263		06/2012		630.2		336.6		157.3		84.0		18,869.7		2,088.6		2,166.0		2,074.9		12,540.2		3,686.8
4PUD		CO PLAN		50.0		12.85535		10.21519		07/2012		630.0		336.6		64.4		34.4		7,730.2		855.6		891.6		854.9		5,128.1		1,499.0
4PUD		Denali 31-21		50.0		0.03125		0.02483		05/2012		481.8		250.1		0.1		0.1		14.3		1.6		2.1		0.1		10.5		4.2
4PUD		Jurasin 32-29		50.0		0.60625		0.48500		04/2012		630.6		336.6		3.1		1.6		366.3		40.5		42.2		39.6		244.0		73.8
4PUD		Lancaster 2-11H		50.0		6.22970		4.98376		03/2012		630.8		336.6		31.4		16.8		3,761.0		416.3		433.6		406.5		2,504.5		763.2
4PUD		Montclair 1-12		50.0		1.59695		1.27756		03/2012		482.1		250.1		6.2		3.2		737.1		81.6		107.8		6.4		541.3		218.0
4PUD		Nomad 6-7		50.0		14.46787		11.43405		04/2012		482.0		250.1		55.1		28.6		6,602.0		731.1		976.1		57.9		4,837.0		1,934.5
4PUD		Olson 15-22		50.0		0.78125		0.62500		01/2012		631.2		336.6		3.9		2.1		471.0		52.1		54.5		0.0		364.4		148.8
4PUD		Reistad 1-1		50.0		8.62284		6.89828		01/2012		631.2		336.6		43.5		23.2		5,198.5		575.5		601.3		0.0		4,021.7		1,642.8
4PUD		Ridgeway 25-36H		50.0		1.87500		1.50000		04/2012		630.6		336.6		9.5		5.0		1,132.8		125.4		130.4		122.3		754.6		228.1
4PUD		Titan 36-25		50.0		0.80711		0.64569		02/2012		482.3		250.1		3.1		1.6		372.3		41.2		54.6		3.2		273.3		111.0
4PUD		UNNAMED 1-12		50.0		11.34369		8.99696		05/2012		630.4		336.6		56.7		30.3		6,799.0		752.6		788.2		740.2		4,518.1		1,351.1
4PUD		Willoch 1-16H		50.0		2.50820		2.00656		01/2012		482.4		250.1		9.7		5.0		1,156.1		128.0		169.7		0.0		858.4		357.6
4PUD		Wolter 15-8H		50.0		1.54229		1.21070		02/2012		631.0		336.6		7.6		4.1		913.0		101.1		107.5		27.8		676.7		258.1
4PUD		Yukon 12-1		50.0		1.25000		1.00000		06/2012		630.2		336.6		6.3		3.4		756.2		83.7		86.8		5.0		580.7		224.8
		TOTAL PUD										9,829.6		5,203.4		639.7		340.4		76,656.0		8,485.6		9,144.1		7,111.1		51,915.2		16,442.7
		TOTAL ALL RESERVE CATEGORIES										14,481.3		7,923.3		742.7		400.3		88,828.0		9,831.9		10,870.6		7,123.8		61,001.7		20,331.3

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 82

AMERICAN EAGLE ENERGY	DATE	: 03/09/2012
SPYGLASS	TIME	: 12:41:28
TOTAL PROVED	DBS	: MHA
	SETTINGS	: SETDATA
	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		1693.761		1527.005		79.923		71.694		91.830		2.720		7339.337		195.009		7534.345
12-2013		1131.541		968.244		59.607		50.829		88.660		3.350		5284.776		170.276		5455.052
12-2014		861.139		699.039		44.446		35.933		85.760		3.710		3811.649		133.312		3944.961
12-2015		724.311		557.839		37.094		28.445		91.180		5.120		3382.198		145.639		3527.837
12-2016		637.461		465.806		32.510		23.650		93.130		5.240		3027.681		123.925		3151.606
12-2017		575.963		399.323		29.298		20.219		95.110		5.360		2786.510		108.374		2894.883
12-2018		529.439		348.284		26.884		17.602		97.140		5.490		2611.488		96.632		2708.120
12-2019		492.401		307.339		24.980		15.516		99.210		5.610		2478.245		87.047		2565.292
12-2020		461.654		273.372		23.423		13.803		101.320		5.740		2373.231		79.230		2452.461
12-2021		435.507		244.639		22.118		12.365		103.470		5.870		2288.551		72.585		2361.136
12-2022		412.382		219.733		20.980		11.128		105.664		6.004		2216.858		66.810		2283.668
12-2023		390.698		197.466		19.916		10.021		107.902		6.141		2148.980		61.536		2210.516
12-2024		370.172		177.460		18.906		9.025		110.185		6.280		2083.162		56.676		2139.839
12-2025		350.742		159.485		17.948		8.128		112.514		6.422		2019.344		52.198		2071.542
12-2026		332.348		143.335		17.038		7.320		114.889		6.567		1957.465		48.070		2005.535
S TOT		9399.516		6688.368		475.070		335.677		96.427		4.461		45809.473		1497.320		47306.793
AFTER		5081.805		1234.957		267.661		64.596		153.161		8.142		40995.293		525.943		41521.242
TOTAL		14481.321		7923.325		742.731		400.273		116.872		5.055		86804.766		2023.263		88828.031

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		465.880		366.967		226.872		0.000		0.000		7123.775		-649.147		-649.147		-907.889
12-2013		337.403		264.239		221.510		0.000		0.000		0.000		4631.900		3982.753		3121.321
12-2014		244.035		190.582		197.150		0.000		0.000		0.000		3313.194		7295.947		5737.712
12-2015		218.317		169.110		186.578		0.000		0.000		0.000		2953.832		10249.779		7857.141
12-2016		195.014		151.384		180.927		0.000		0.000		0.000		2624.280		12874.059		9568.449
12-2017		179.111		139.325		177.739		0.000		0.000		0.000		2398.708		15272.768		10990.208
12-2018		167.540		130.574		176.006		0.000		0.000		0.000		2233.999		17506.768		12193.820
12-2019		158.690		123.912		175.222		0.000		0.000		0.000		2107.467		19614.236		13225.951
12-2020		151.697		118.662		175.103		0.000		0.000		0.000		2007.000		21621.236		14119.463
12-2021		146.036		114.428		175.479		0.000		0.000		0.000		1925.194		23546.430		14898.598
12-2022		141.234		110.843		176.204		0.000		0.000		0.000		1855.388		25401.818		15581.207
12-2023		136.699		107.449		177.113		0.000		0.000		0.000		1789.255		27191.072		16179.643
12-2024		132.319		104.158		178.174		0.000		0.000		0.000		1725.188		28916.260		16704.195
12-2025		128.087		100.967		179.383		0.000		0.000		0.000		1663.104		30579.363		17163.902
12-2026		123.998		97.873		180.735		0.000		0.000		0.000		1602.929		32182.293		17566.695
S TOT		2926.060		2290.473		2784.195		0.000		0.000		7123.775		32182.293		32182.293		17566.695
AFTER		2565.645		2049.764		8086.375		0.000		0.000		0.000		28819.445		61001.758		20331.260
TOTAL		5491.706		4340.238		10870.569		0.000		0.000		7123.775		61001.734		61001.758		20331.260

	OIL		GAS
GROSS WELLS		28.0		0.0
GROSS ULT., MB & MMF		14948.958		8334.939
GROSS CUM., MB & MMF		467.638		411.614
GROSS RES., MB & MMF		14481.320		7923.326
NET RES., MB & MMF		742.731		400.273
NET REVENUE, M$		86804.750		2023.263
INITIAL PRICE, $		87.179		2.535
INITIAL N.I., PCT.		1.214		1.135

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		31333.389
DISCOUNT %	10.00		10.00		20331.262
UNDISCOUNTED PAYOUT, YRS.	1.14		12.00		17740.395
DISCOUNTED PAYOUT, YRS.	1.23		15.00		14829.388
UNDISCOUNTED NET/INVEST.	9.56		18.00		12675.219
DISCOUNTED NET/INVEST.	3.88		20.00		11522.401
RATE-OF-RETURN, PCT.	100.00		30.00		7682.249
INITIAL W.I., PCT.	6.776		60.00		2978.207
			80.00		1569.386
			100.00		651.620

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 83

AMERICAN EAGLE ENERGY	DATE	: 03/09/2012
SPYGLASS	TIME	: 12:41:27
TOTAL PDP	DBS	: MHA
	SETTINGS	: SETDATA
	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		552.375		517.880		11.859		11.412		91.830		2.720		1089.012		31.042		1120.054
12-2013		319.730		284.286		6.790		6.126		88.660		3.350		602.004		20.521		622.525
12-2014		251.958		212.960		5.344		4.571		85.760		3.710		458.291		16.959		475.249
12-2015		214.826		172.593		4.554		3.697		91.180		5.120		415.236		18.929		434.166
12-2016		190.457		145.446		4.036		3.111		93.130		5.240		375.916		16.302		392.219
12-2017		172.873		125.493		3.663		2.681		95.110		5.360		348.422		14.371		362.793
12-2018		159.403		110.001		3.378		2.348		97.140		5.490		328.112		12.889		341.001
12-2019		148.412		97.361		3.146		2.077		99.210		5.610		312.131		11.652		323.783
12-2020		138.880		86.597		2.949		1.849		101.320		5.740		298.762		10.613		309.375
12-2021		130.450		77.301		2.777		1.654		103.470		5.870		287.310		9.707		297.016
12-2022		122.768		69.128		2.621		1.482		105.664		6.004		276.961		8.901		285.861
12-2023		115.565		61.829		2.475		1.329		107.902		6.141		267.043		8.163		275.205
12-2024		108.796		55.304		2.337		1.192		110.185		6.280		257.498		7.485		264.983
12-2025		102.434		49.470		2.207		1.069		112.514		6.422		248.311		6.864		255.175
12-2026		96.456		44.254		2.084		0.958		114.889		6.567		239.468		6.294		245.762
S TOT		2825.384		2109.904		60.220		45.557		96.387		4.405		5804.476		200.692		6005.168
AFTER		1344.229		359.946		30.730		8.104		151.686		8.085		4661.331		65.522		4726.852
TOTAL		4169.613		2469.850		90.950		53.661		115.072		4.961		10465.806		266.215		10732.020

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		69.264		54.451		37.961		0.000		0.000		0.000		958.378		958.378		921.456
12-2013		38.508		30.100		29.287		0.000		0.000		0.000		524.630		1483.008		1377.501
12-2014		29.402		22.915		27.046		0.000		0.000		0.000		395.887		1878.896		1690.059
12-2015		26.871		20.762		25.980		0.000		0.000		0.000		360.552		2239.448		1948.734
12-2016		24.272		18.796		25.408		0.000		0.000		0.000		323.743		2563.191		2159.835
12-2017		22.449		17.421		25.101		0.000		0.000		0.000		297.822		2861.013		2336.353
12-2018		21.099		16.406		24.957		0.000		0.000		0.000		278.540		3139.552		2486.418
12-2019		20.031		15.607		24.919		0.000		0.000		0.000		263.226		3402.779		2615.333
12-2020		19.138		14.938		24.950		0.000		0.000		0.000		250.349		3653.127		2726.790
12-2021		18.372		14.365		25.034		0.000		0.000		0.000		239.244		3892.371		2823.616
12-2022		17.681		13.848		25.157		0.000		0.000		0.000		229.176		4121.547		2907.936
12-2023		17.020		13.352		25.304		0.000		0.000		0.000		219.529		4341.076		2981.364
12-2024		16.387		12.875		25.475		0.000		0.000		0.000		210.247		4551.322		3045.294
12-2025		15.779		12.416		25.668		0.000		0.000		0.000		201.312		4752.634		3100.942
12-2026		15.196		11.973		25.883		0.000		0.000		0.000		192.709		4945.344		3149.370
S TOT		371.471		290.224		398.129		0.000		0.000		0.000		4945.344		4945.344		3149.370
AFTER		292.096		233.066		1113.684		0.000		0.000		0.000		3088.005		8033.349		3463.532
TOTAL		663.567		523.290		1511.814		0.000		0.000		0.000		8033.349		8033.349		3463.532

	OIL		GAS
GROSS WELLS		10.0		0.0
GROSS ULT., MB & MMF		4637.251		2881.464
GROSS CUM., MB & MMF		467.638		411.614
GROSS RES., MB & MMF		4169.613		2469.850
NET RES., MB & MMF		90.950		53.661
NET REVENUE, M$		10465.803		266.215
INITIAL PRICE, $		75.794		2.112
INITIAL N.I., PCT.		1.214		1.135

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		4746.894
DISCOUNT %	10.00		10.00		3463.533
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		3154.439
DISCOUNTED PAYOUT, YRS.	0.00		15.00		2804.016
UNDISCOUNTED NET/INVEST.	0.00		18.00		2542.713
DISCOUNTED NET/INVEST.	0.00		20.00		2402.249
RATE-OF-RETURN, PCT.	100.00		30.00		1931.712
INITIAL W.I., PCT.	2.994		60.00		1350.193
			80.00		1173.851
			100.00		1057.564

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 84

AMERICAN EAGLE ENERGY	DATE	: 03/09/2012
SPYGLASS	TIME	: 12:41:27
TOTAL PNP	DBS	: MHA
	SETTINGS	: SETDATA
	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		54.984		48.529		1.372		1.211		91.830		2.720		126.013		3.294		129.307
12-2013		36.905		30.892		0.921		0.771		88.660		3.350		81.659		2.583		84.242
12-2014		28.131		22.258		0.702		0.555		85.760		3.710		60.209		2.061		62.270
12-2015		23.653		17.697		0.590		0.442		91.180		5.120		53.825		2.261		56.087
12-2016		20.809		14.724		0.519		0.367		93.130		5.240		48.366		1.926		50.292
12-2017		18.796		12.578		0.469		0.314		95.110		5.360		44.616		1.683		46.299
12-2018		17.274		10.933		0.431		0.273		97.140		5.490		41.879		1.498		43.377
12-2019		16.071		9.620		0.401		0.240		99.210		5.610		39.793		1.347		41.140
12-2020		15.089		8.543		0.377		0.213		101.320		5.740		38.156		1.224		39.380
12-2021		14.268		7.640		0.356		0.191		103.470		5.870		36.844		1.119		37.964
12-2022		13.548		6.862		0.338		0.171		105.664		6.004		35.728		1.028		36.756
12-2023		12.871		6.166		0.321		0.154		107.902		6.141		34.661		0.945		35.606
12-2024		12.227		5.541		0.305		0.138		110.185		6.280		33.624		0.868		34.493
12-2025		11.616		4.979		0.290		0.124		112.514		6.422		32.618		0.798		33.416
12-2026		11.035		4.474		0.275		0.112		114.889		6.567		31.641		0.733		32.374
S TOT		307.278		211.436		7.669		5.277		96.447		4.428		739.634		23.368		763.002
AFTER		174.846		38.689		4.364		0.966		153.353		8.118		669.181		7.838		677.019
TOTAL		482.123		250.125		12.033		6.242		117.084		4.999		1408.815		31.207		1440.021

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		7.995		6.301		4.355		0.000		0.000		12.717		97.939		97.939		92.742
12-2013		5.210		4.083		3.977		0.000		0.000		0.000		70.971		168.911		154.461
12-2014		3.852		3.010		3.634		0.000		0.000		0.000		51.774		220.685		195.343
12-2015		3.471		2.691		3.482		0.000		0.000		0.000		46.443		267.128		228.666
12-2016		3.112		2.418		3.404		0.000		0.000		0.000		41.358		308.486		255.635
12-2017		2.864		2.231		3.364		0.000		0.000		0.000		37.840		346.325		278.064
12-2018		2.683		2.094		3.347		0.000		0.000		0.000		35.253		381.578		297.057
12-2019		2.545		1.990		3.345		0.000		0.000		0.000		33.260		414.838		313.346
12-2020		2.436		1.908		3.354		0.000		0.000		0.000		31.683		446.521		327.451
12-2021		2.348		1.842		3.371		0.000		0.000		0.000		30.403		476.924		339.755
12-2022		2.273		1.786		3.393		0.000		0.000		0.000		29.303		506.227		350.536
12-2023		2.202		1.733		3.419		0.000		0.000		0.000		28.252		534.479		359.985
12-2024		2.133		1.681		3.447		0.000		0.000		0.000		27.231		561.710		368.265
12-2025		2.066		1.631		3.478		0.000		0.000		0.000		26.241		587.951		375.519
12-2026		2.002		1.582		3.512		0.000		0.000		0.000		25.279		613.231		381.871
S TOT		47.191		36.982		52.881		0.000		0.000		12.717		613.231		613.231		381.871
AFTER		41.831		33.459		161.805		0.000		0.000		0.000		439.924		1053.154		424.990
TOTAL		89.023		70.441		214.687		0.000		0.000		12.717		1053.154		1053.154		424.990

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		482.123		250.125
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		482.123		250.125
NET RES., MB & MMF		12.032		6.242
NET REVENUE, M$		1408.815		31.207
INITIAL PRICE, $		91.830		2.720
INITIAL N.I., PCT.		2.496		2.496

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		597.061
DISCOUNT %	10.00		10.00		424.990
UNDISCOUNTED PAYOUT, YRS.	0.11		12.00		384.180
DISCOUNTED PAYOUT, YRS.	0.12		15.00		338.190
UNDISCOUNTED NET/INVEST.	83.81		18.00		304.057
DISCOUNTED NET/INVEST.	34.69		20.00		285.752
RATE-OF-RETURN, PCT.	100.00		30.00		224.520
INITIAL W.I., PCT.	3.179		60.00		148.457
			80.00		125.137
			100.00		109.666

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 85

AMERICAN EAGLE ENERGY	DATE	: 03/09/2012
SPYGLASS	TIME	: 12:41:28
TOTAL PUD	DBS	: MHA
	SETTINGS	: SETDATA
	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		1086.403		960.596		66.692		59.071		91.830		2.720		6124.312		160.673		6284.984
12-2013		774.906		653.066		51.896		43.932		88.660		3.350		4601.113		147.172		4748.285
12-2014		581.050		463.821		38.400		30.807		85.760		3.710		3293.149		114.292		3407.441
12-2015		485.832		367.549		31.949		24.306		91.180		5.120		2913.136		124.449		3037.584
12-2016		426.194		305.636		27.954		20.171		93.130		5.240		2603.399		105.697		2709.095
12-2017		384.293		261.252		25.165		17.224		95.110		5.360		2393.472		92.320		2485.792
12-2018		352.762		227.350		23.075		14.981		97.140		5.490		2241.497		82.245		2323.741
12-2019		327.917		200.358		21.433		13.199		99.210		5.610		2126.322		74.048		2200.369
12-2020		307.684		178.231		20.098		11.741		101.320		5.740		2036.313		67.394		2103.707
12-2021		290.789		159.697		18.985		10.521		103.470		5.870		1964.397		61.759		2026.156
12-2022		276.066		143.743		18.021		9.474		105.664		6.004		1904.169		56.881		1961.050
12-2023		262.262		129.470		17.120		8.538		107.902		6.141		1847.276		52.429		1899.705
12-2024		249.149		116.615		16.264		7.695		110.185		6.280		1792.040		48.323		1840.363
12-2025		236.692		105.036		15.451		6.934		112.514		6.422		1738.415		44.535		1782.950
12-2026		224.857		94.608		14.678		6.250		114.889		6.567		1686.356		41.043		1727.399
S TOT		6266.854		4367.029		407.181		284.844		96.432		4.470		39265.367		1273.259		40538.625
AFTER		3562.729		836.321		232.567		55.526		153.353		8.151		35664.777		452.583		36117.363
TOTAL		9829.583		5203.351		639.748		340.370		117.125		5.070		74930.141		1725.842		76655.984

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		388.620		306.216		184.556		0.000		0.000		7111.058		-1705.464		-1705.464		-1922.087
12-2013		293.685		230.056		188.246		0.000		0.000		0.000		4036.298		2330.834		1589.359
12-2014		210.781		164.657		166.471		0.000		0.000		0.000		2865.532		5196.366		3852.310
12-2015		187.975		145.657		157.116		0.000		0.000		0.000		2546.837		7743.203		5679.741
12-2016		167.630		130.170		152.115		0.000		0.000		0.000		2259.180		10002.383		7152.978
12-2017		153.798		119.674		149.274		0.000		0.000		0.000		2063.047		12065.430		8375.791
12-2018		143.758		112.075		147.702		0.000		0.000		0.000		1920.207		13985.636		9410.346
12-2019		136.113		106.316		146.959		0.000		0.000		0.000		1810.981		15796.617		10297.273
12-2020		130.123		101.816		146.799		0.000		0.000		0.000		1724.969		17521.586		11065.223
12-2021		125.316		98.220		147.074		0.000		0.000		0.000		1655.547		19177.133		11735.227
12-2022		121.280		95.208		147.654		0.000		0.000		0.000		1596.908		20774.039		12322.736
12-2023		117.477		92.364		148.390		0.000		0.000		0.000		1541.474		22315.514		12838.295
12-2024		113.799		89.602		149.252		0.000		0.000		0.000		1487.710		23803.225		13290.638
12-2025		110.242		86.921		150.236		0.000		0.000		0.000		1435.552		25238.775		13687.442
12-2026		106.800		84.318		151.340		0.000		0.000		0.000		1384.940		26623.717		14035.456
S TOT		2507.398		1963.268		2333.184		0.000		0.000		7111.058		26623.717		26623.717		14035.456
AFTER		2231.718		1783.239		6810.883		0.000		0.000		0.000		25291.518		51915.230		16442.740
TOTAL		4739.116		3746.507		9144.067		0.000		0.000		7111.058		51915.230		51915.230		16442.740

	OIL		GAS
GROSS WELLS		17.0		0.0
GROSS ULT., MB & MMF		9829.584		5203.351
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		9829.584		5203.351
NET RES., MB & MMF		639.748		340.370
NET REVENUE, M$		74930.148		1725.842
INITIAL PRICE, $		91.830		2.720
INITIAL N.I., PCT.		6.139		6.149

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		25989.434
DISCOUNT %	10.00		10.00		16442.738
UNDISCOUNTED PAYOUT, YRS.	1.42		12.00		14201.774
DISCOUNTED PAYOUT, YRS.	1.55		15.00		11687.182
UNDISCOUNTED NET/INVEST.	8.30		18.00		9828.449
DISCOUNTED NET/INVEST.	3.34		20.00		8834.400
RATE-OF-RETURN, PCT.	86.29		30.00		5526.017
INITIAL W.I., PCT.	8.278		60.00		1479.557
			80.00		270.398
			100.00		-515.610

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 86

Bagley 4-30H S18-19	DATE	: 03/09/2012
163N 100W 18	TIME	: 12:42:22
THREE FORKS	DBS	: MHA
SM ENERGY	SETTINGS	: SETDATA
1PDP	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		70.117		61.946		2.138		1.889		91.830		2.720		196.365		5.139		201.503
12-2013		44.301		37.465		1.351		1.143		88.660		3.350		119.785		3.828		123.612
12-2014		35.270		28.584		1.076		0.872		85.760		3.710		92.247		3.234		95.481
12-2015		30.204		23.462		0.921		0.716		91.180		5.120		83.989		3.663		87.652
12-2016		26.844		19.988		0.819		0.610		93.130		5.240		76.243		3.194		79.437
12-2017		24.405		17.420		0.744		0.531		95.110		5.360		70.790		2.848		73.637
12-2018		22.528		15.415		0.687		0.470		97.140		5.490		66.740		2.581		69.321
12-2019		20.943		13.737		0.639		0.419		99.210		5.610		63.365		2.350		65.716
12-2020		19.477		12.248		0.594		0.374		101.320		5.740		60.183		2.144		62.327
12-2021		18.114		10.919		0.552		0.333		103.470		5.870		57.158		1.955		59.113
12-2022		16.846		9.735		0.514		0.297		105.664		6.004		54.284		1.783		56.067
12-2023		15.666		8.680		0.478		0.265		107.902		6.141		51.553		1.625		53.179
12-2024		14.570		7.738		0.444		0.236		110.185		6.280		48.959		1.482		50.441
12-2025		13.550		6.899		0.413		0.210		112.514		6.422		46.494		1.351		47.845
12-2026		12.601		6.151		0.384		0.188		114.889		6.567		44.152		1.232		45.384
S TOT		385.437		280.387		11.755		8.551		96.328		4.492		1132.308		38.409		1170.716
AFTER		151.492		49.344		4.620		1.505		146.101		7.998		674.996		12.036		687.032
TOTAL		536.929		329.731		16.375		10.056		110.371		5.017		1807.303		50.445		1857.749

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		12.460		9.818		6.589		0.000		0.000		0.000		172.637		172.637		165.610
12-2013		7.646		5.989		5.245		0.000		0.000		0.000		104.732		277.369		256.636
12-2014		5.906		4.612		4.813		0.000		0.000		0.000		80.150		357.519		319.911
12-2015		5.424		4.199		4.596		0.000		0.000		0.000		73.433		430.951		372.592
12-2016		4.916		3.812		4.473		0.000		0.000		0.000		66.236		497.187		415.781
12-2017		4.556		3.539		4.401		0.000		0.000		0.000		61.140		558.328		452.018
12-2018		4.289		3.337		4.361		0.000		0.000		0.000		57.334		615.662		482.906
12-2019		4.066		3.168		4.338		0.000		0.000		0.000		54.144		669.806		509.424
12-2020		3.856		3.009		4.322		0.000		0.000		0.000		51.140		720.946		532.194
12-2021		3.657		2.858		4.314		0.000		0.000		0.000		48.284		769.230		551.737
12-2022		3.468		2.714		4.312		0.000		0.000		0.000		45.573		814.803		568.507
12-2023		3.289		2.578		4.316		0.000		0.000		0.000		42.996		857.799		582.890
12-2024		3.120		2.448		4.326		0.000		0.000		0.000		40.548		898.347		595.221
12-2025		2.959		2.325		4.341		0.000		0.000		0.000		38.221		936.568		605.788
12-2026		2.806		2.208		4.362		0.000		0.000		0.000		36.008		972.576		614.838
S TOT		72.417		56.615		69.108		0.000		0.000		0.000		972.576		972.576		614.838
AFTER		42.463		33.750		177.109		0.000		0.000		0.000		433.710		1406.286		666.194
TOTAL		114.880		90.365		246.217		0.000		0.000		0.000		1406.286		1406.286		666.194

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		590.147		364.068
GROSS CUM., MB & MMF		53.218		34.337
GROSS RES., MB & MMF		536.929		329.731
NET RES., MB & MMF		16.375		10.056
NET REVENUE, M$		1807.303		50.445
INITIAL PRICE, $		91.830		2.720
INITIAL N.I., PCT.		3.050		3.050

		P.W. %		P.W., M$
LIFE, YRS.	47.42		5.00		893.593
DISCOUNT %	10.00		10.00		666.194
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		608.492
DISCOUNTED PAYOUT, YRS.	0.00		15.00		541.701
UNDISCOUNTED NET/INVEST.	0.00		18.00		491.007
DISCOUNTED NET/INVEST.	0.00		20.00		463.473
RATE-OF-RETURN, PCT.	100.00		30.00		370.085
INITIAL W.I., PCT.	3.872		60.00		253.475
			80.00		218.227
			100.00		195.092

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 87

Gerhardsen 1-10H S3-10	DATE	: 03/09/2012
160N 97W 3	TIME	: 12:42:23
THREE FORKS	DBS	: MHA
CONTINENTAL	SETTINGS	: SETDATA
1PDP	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		53.307		46.393		1.010		0.879		91.830		2.720		92.777		2.392		95.168
12-2013		33.694		27.688		0.639		0.525		88.660		3.350		56.618		1.758		58.376
12-2014		26.828		20.847		0.508		0.395		85.760		3.710		43.605		1.466		45.071
12-2015		22.975		16.886		0.435		0.320		91.180		5.120		39.703		1.639		41.342
12-2016		20.420		14.197		0.387		0.269		93.130		5.240		36.042		1.410		37.452
12-2017		18.565		12.210		0.352		0.231		95.110		5.360		33.465		1.240		34.705
12-2018		17.139		10.664		0.325		0.202		97.140		5.490		31.554		1.110		32.664
12-2019		15.999		9.417		0.303		0.178		99.210		5.610		30.082		1.001		31.083
12-2020		15.060		8.386		0.285		0.159		101.320		5.740		28.919		0.912		29.831
12-2021		14.267		7.516		0.270		0.142		103.470		5.870		27.977		0.836		28.814
12-2022		13.552		6.754		0.257		0.128		105.664		6.004		27.140		0.769		27.908
12-2023		12.875		6.071		0.244		0.115		107.902		6.141		26.329		0.707		27.035
12-2024		12.231		5.456		0.232		0.103		110.185		6.280		25.542		0.649		26.191
12-2025		11.619		4.904		0.220		0.093		112.514		6.422		24.777		0.597		25.374
12-2026		11.038		4.407		0.209		0.084		114.889		6.567		24.035		0.549		24.584
S TOT		299.570		201.798		5.678		3.825		96.619		4.454		548.566		17.034		565.600
AFTER		174.897		38.195		3.315		0.724		153.353		8.120		508.325		5.878		514.203
TOTAL		474.466		239.993		8.992		4.548		117.532		5.037		1056.891		22.912		1079.803

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		5.884		4.639		3.474		0.000		0.000		0.000		81.171		81.171		77.870
12-2013		3.610		2.831		2.857		0.000		0.000		0.000		49.077		130.249		120.525
12-2014		2.788		2.180		2.664		0.000		0.000		0.000		37.439		167.687		150.081
12-2015		2.558		1.985		2.572		0.000		0.000		0.000		34.226		201.914		174.636
12-2016		2.317		1.802		2.524		0.000		0.000		0.000		30.809		232.723		194.726
12-2017		2.147		1.673		2.499		0.000		0.000		0.000		28.386		261.109		211.550
12-2018		2.021		1.578		2.489		0.000		0.000		0.000		26.576		287.685		225.868
12-2019		1.923		1.504		2.490		0.000		0.000		0.000		25.167		312.852		238.193
12-2020		1.845		1.446		2.498		0.000		0.000		0.000		24.042		336.894		248.896
12-2021		1.782		1.399		2.512		0.000		0.000		0.000		23.121		360.015		258.253
12-2022		1.726		1.357		2.529		0.000		0.000		0.000		22.297		382.311		266.456
12-2023		1.672		1.316		2.548		0.000		0.000		0.000		21.499		403.811		273.647
12-2024		1.619		1.277		2.569		0.000		0.000		0.000		20.726		424.537		279.948
12-2025		1.569		1.239		2.592		0.000		0.000		0.000		19.975		444.511		285.470
12-2026		1.520		1.202		2.617		0.000		0.000		0.000		19.246		463.757		290.306
S TOT		34.981		27.428		39.434		0.000		0.000		0.000		463.757		463.757		290.306
AFTER		31.771		25.416		120.573		0.000		0.000		0.000		336.443		800.200		323.192
TOTAL		66.752		52.845		160.006		0.000		0.000		0.000		800.200		800.200		323.192

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		525.613		298.651
GROSS CUM., MB & MMF		51.147		58.658
GROSS RES., MB & MMF		474.466		239.993
NET RES., MB & MMF		8.992		4.548
NET REVENUE, M$		1056.891		22.912
INITIAL PRICE, $		-6.240		-0.830
INITIAL N.I., PCT.		1.895		1.895

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		453.174
DISCOUNT %	10.00		10.00		323.192
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		292.533
DISCOUNTED PAYOUT, YRS.	0.00		15.00		258.105
UNDISCOUNTED NET/INVEST.	0.00		18.00		232.663
DISCOUNTED NET/INVEST.	0.00		20.00		219.067
RATE-OF-RETURN, PCT.	100.00		30.00		173.915
INITIAL W.I., PCT.	2.369		60.00		118.909
			80.00		102.409
			100.00		91.583

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 88

Legaard 4-25H S13-24	DATE	: 03/09/2012
163N 101W 13	TIME	: 12:42:23
THREE FORKS	DBS	: MHA
SM ENERGY	SETTINGS	: SETDATA
1PDP	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		62.788		55.267		1.833		1.614		91.830		2.720		168.341		4.389		172.730
12-2013		31.243		25.839		0.912		0.754		88.660		3.350		80.874		2.527		83.401
12-2014		24.112		18.815		0.704		0.549		85.760		3.710		60.373		2.038		62.411
12-2015		20.374		15.006		0.595		0.438		91.180		5.120		54.239		2.243		56.482
12-2016		17.973		12.496		0.525		0.365		93.130		5.240		48.869		1.912		50.781
12-2017		16.262		10.673		0.475		0.312		95.110		5.360		45.157		1.670		46.827
12-2018		14.962		9.271		0.437		0.271		97.140		5.490		42.435		1.486		43.922
12-2019		13.932		8.150		0.407		0.238		99.210		5.610		40.356		1.335		41.691
12-2020		13.090		7.229		0.382		0.211		101.320		5.740		38.721		1.211		39.933
12-2021		12.383		6.456		0.362		0.189		103.470		5.870		37.409		1.107		38.516
12-2022		11.760		5.789		0.343		0.169		105.664		6.004		36.280		1.015		37.295
12-2023		11.172		5.192		0.326		0.152		107.902		6.141		35.196		0.931		36.127
12-2024		10.614		4.657		0.310		0.136		110.185		6.280		34.144		0.854		34.998
12-2025		10.083		4.177		0.294		0.122		112.514		6.422		33.122		0.783		33.905
12-2026		9.579		3.746		0.280		0.109		114.889		6.567		32.130		0.718		32.849
S TOT		280.327		192.763		8.185		5.628		96.236		4.303		787.647		24.219		811.866
AFTER		151.770		31.870		4.431		0.930		153.353		8.097		679.526		7.535		687.060
TOTAL		432.097		224.633		12.616		6.558		116.298		4.842		1467.173		31.754		1498.927

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		10.680		8.417		5.894		0.000		0.000		0.000		147.739		147.739		142.445
12-2013		5.158		4.044		4.319		0.000		0.000		0.000		69.880		217.618		203.205
12-2014		3.860		3.019		4.005		0.000		0.000		0.000		51.526		269.145		243.890
12-2015		3.495		2.712		3.868		0.000		0.000		0.000		46.407		315.552		277.187
12-2016		3.142		2.443		3.800		0.000		0.000		0.000		41.395		356.947		304.180
12-2017		2.897		2.258		3.769		0.000		0.000		0.000		37.903		394.850		326.646
12-2018		2.717		2.122		3.761		0.000		0.000		0.000		35.322		430.172		345.676
12-2019		2.579		2.018		3.767		0.000		0.000		0.000		33.327		463.499		361.998
12-2020		2.470		1.936		3.785		0.000		0.000		0.000		31.742		495.241		376.129
12-2021		2.382		1.870		3.811		0.000		0.000		0.000		30.453		525.693		388.454
12-2022		2.306		1.814		3.842		0.000		0.000		0.000		29.333		555.026		399.246
12-2023		2.234		1.760		3.876		0.000		0.000		0.000		28.257		583.284		408.697
12-2024		2.164		1.707		3.913		0.000		0.000		0.000		27.213		610.497		416.971
12-2025		2.096		1.656		3.953		0.000		0.000		0.000		26.200		636.697		424.213
12-2026		2.031		1.607		3.996		0.000		0.000		0.000		25.215		661.912		430.549
S TOT		50.211		39.382		60.360		0.000		0.000		0.000		661.912		661.912		430.549
AFTER		42.450		33.976		186.400		0.000		0.000		0.000		424.233		1086.145		473.009
TOTAL		92.662		73.359		246.761		0.000		0.000		0.000		1086.146		1086.145		473.009

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		469.519		262.925
GROSS CUM., MB & MMF		37.422		38.292
GROSS RES., MB & MMF		432.097		224.633
NET RES., MB & MMF		12.616		6.558
NET REVENUE, M$		1467.173		31.754
INITIAL PRICE, $		91.830		2.720
INITIAL N.I., PCT.		2.920		2.920

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		642.940
DISCOUNT %	10.00		10.00		473.009
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		432.461
DISCOUNTED PAYOUT, YRS.	0.00		15.00		386.668
UNDISCOUNTED NET/INVEST.	0.00		18.00		352.624
DISCOUNTED NET/INVEST.	0.00		20.00		334.350
RATE-OF-RETURN, PCT.	100.00		30.00		273.160
INITIAL W.I., PCT.	3.686		60.00		197.024
			80.00		173.622
			100.00		158.053

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 89

Mustang 7-6 S6-7	DATE	: 03/09/2012
163N 98W 6	TIME	: 12:42:23
THREE FORKS	DBS	: MHA
SAMSON	SETTINGS	: SETDATA
1PDP	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		62.157		54.665		0.161		0.142		91.830		2.720		14.799		0.386		15.185
12-2013		34.850		28.898		0.090		0.075		88.660		3.350		8.011		0.251		8.262
12-2014		27.205		21.325		0.071		0.055		85.760		3.710		6.049		0.205		6.254
12-2015		23.097		17.121		0.060		0.044		91.180		5.120		5.460		0.227		5.688
12-2016		20.428		14.320		0.053		0.037		93.130		5.240		4.933		0.195		5.127
12-2017		18.514		12.275		0.048		0.032		95.110		5.360		4.566		0.171		4.736
12-2018		17.055		10.694		0.044		0.028		97.140		5.490		4.296		0.152		4.448
12-2019		15.894		9.426		0.041		0.024		99.210		5.610		4.089		0.137		4.226
12-2020		14.943		8.382		0.039		0.022		101.320		5.740		3.925		0.125		4.050
12-2021		14.143		7.504		0.037		0.019		103.470		5.870		3.794		0.114		3.908
12-2022		13.433		6.741		0.035		0.017		105.664		6.004		3.680		0.105		3.785
12-2023		12.761		6.057		0.033		0.016		107.902		6.141		3.570		0.096		3.667
12-2024		12.123		5.443		0.031		0.014		110.185		6.280		3.463		0.089		3.552
12-2025		11.517		4.891		0.030		0.013		112.514		6.422		3.360		0.081		3.441
12-2026		10.941		4.395		0.028		0.011		114.889		6.567		3.259		0.075		3.334
S TOT		309.062		212.136		0.801		0.550		96.408		4.379		77.256		2.409		79.664
AFTER		173.357		38.006		0.449		0.099		153.353		8.118		68.929		0.800		69.729
TOTAL		482.420		250.142		1.251		0.649		116.871		4.947		146.185		3.209		149.394

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		0.939		0.740		0.515		0.000		0.000		0.000		12.991		12.991		12.491
12-2013		0.511		0.401		0.396		0.000		0.000		0.000		6.955		19.945		18.537
12-2014		0.387		0.302		0.366		0.000		0.000		0.000		5.199		25.144		22.642
12-2015		0.352		0.273		0.352		0.000		0.000		0.000		4.710		29.854		26.021
12-2016		0.317		0.247		0.345		0.000		0.000		0.000		4.218		34.073		28.772
12-2017		0.293		0.228		0.342		0.000		0.000		0.000		3.873		37.946		31.068
12-2018		0.275		0.215		0.340		0.000		0.000		0.000		3.618		41.564		33.017
12-2019		0.261		0.204		0.340		0.000		0.000		0.000		3.420		44.983		34.691
12-2020		0.251		0.196		0.341		0.000		0.000		0.000		3.262		48.245		36.144
12-2021		0.242		0.190		0.343		0.000		0.000		0.000		3.134		51.379		37.412
12-2022		0.234		0.184		0.345		0.000		0.000		0.000		3.022		54.401		38.524
12-2023		0.227		0.179		0.348		0.000		0.000		0.000		2.913		57.314		39.498
12-2024		0.220		0.173		0.351		0.000		0.000		0.000		2.808		60.123		40.352
12-2025		0.213		0.168		0.354		0.000		0.000		0.000		2.706		62.829		41.100
12-2026		0.206		0.163		0.358		0.000		0.000		0.000		2.607		65.437		41.755
S TOT		4.927		3.863		5.438		0.000		0.000		0.000		65.437		65.437		41.755
AFTER		4.308		3.446		16.488		0.000		0.000		0.000		45.486		110.923		46.207
TOTAL		9.235		7.309		21.926		0.000		0.000		0.000		110.923		110.923		46.207

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		482.420		250.142
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		482.420		250.142
NET RES., MB & MMF		1.251		0.649
NET REVENUE, M$		146.185		3.209
INITIAL PRICE, $		91.830		2.720
INITIAL N.I., PCT.		0.259		0.259

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		63.887
DISCOUNT %	10.00		10.00		46.207
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		42.025
DISCOUNTED PAYOUT, YRS.	0.00		15.00		37.321
UNDISCOUNTED NET/INVEST.	0.00		18.00		33.836
DISCOUNTED NET/INVEST.	0.00		20.00		31.971
RATE-OF-RETURN, PCT.	100.00		30.00		25.751
INITIAL W.I., PCT.	0.324		60.00		18.091
			80.00		15.762
			100.00		14.222

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 90

Nielsen 1-12H S1-12	DATE	: 03/09/2012
160N 97W 1	TIME	: 12:42:23
THREE FORKS	DBS	: MHA
CONTINENTAL	SETTINGS	: SETDATA
1PDP	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		24.083		21.259		0.088		0.078		91.830		2.720		8.085		0.211		8.296
12-2013		13.503		11.328		0.049		0.041		88.660		3.350		4.376		0.139		4.515
12-2014		10.541		8.424		0.039		0.031		85.760		3.710		3.305		0.114		3.419
12-2015		8.949		6.814		0.033		0.025		91.180		5.120		2.983		0.128		3.111
12-2016		7.915		5.743		0.029		0.021		93.130		5.240		2.695		0.110		2.805
12-2017		7.173		4.960		0.026		0.018		95.110		5.360		2.494		0.097		2.591
12-2018		6.608		4.354		0.024		0.016		97.140		5.490		2.347		0.087		2.434
12-2019		6.140		3.855		0.022		0.014		99.210		5.610		2.227		0.079		2.306
12-2020		5.710		3.417		0.021		0.012		101.320		5.740		2.115		0.072		2.187
12-2021		5.311		3.029		0.019		0.011		103.470		5.870		2.009		0.065		2.074
12-2022		4.939		2.684		0.018		0.010		105.664		6.004		1.908		0.059		1.967
12-2023		4.593		2.379		0.017		0.009		107.902		6.141		1.812		0.053		1.865
12-2024		4.272		2.108		0.016		0.008		110.185		6.280		1.721		0.048		1.769
12-2025		3.973		1.869		0.015		0.007		112.514		6.422		1.634		0.044		1.678
12-2026		3.694		1.656		0.014		0.006		114.889		6.567		1.552		0.040		1.591
S TOT		117.403		83.880		0.429		0.307		96.136		4.392		41.261		1.347		42.608
AFTER		33.242		10.942		0.122		0.040		133.047		7.528		16.168		0.301		16.470
TOTAL		150.645		94.822		0.551		0.347		104.281		4.753		57.429		1.648		59.077

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MOYEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		0.513		0.404		0.483		0.000		0.000		0.000		6.896		6.896		6.632
12-2013		0.279		0.219		0.422		0.000		0.000		0.000		3.595		10.491		9.758
12-2014		0.211		0.165		0.410		0.000		0.000		0.000		2.632		13.123		11.837
12-2015		0.192		0.149		0.406		0.000		0.000		0.000		2.363		15.486		13.532
12-2016		0.174		0.135		0.407		0.000		0.000		0.000		2.090		17.576		14.895
12-2017		0.160		0.125		0.409		0.000		0.000		0.000		1.897		19.473		16.019
12-2018		0.151		0.117		0.413		0.000		0.000		0.000		1.753		21.226		16.964
12-2019		0.143		0.111		0.417		0.000		0.000		0.000		1.635		22.861		17.765
12-2020		0.135		0.106		0.422		0.000		0.000		0.000		1.524		24.385		18.443
12-2021		0.128		0.100		0.427		0.000		0.000		0.000		1.418		25.802		19.017
12-2022		0.122		0.095		0.433		0.000		0.000		0.000		1.317		27.119		19.502
12-2023		0.115		0.091		0.438		0.000		0.000		0.000		1.221		28.340		19.910
12-2024		0.109		0.086		0.445		0.000		0.000		0.000		1.129		29.469		20.254
12-2025		0.104		0.082		0.451		0.000		0.000		0.000		1.041		30.511		20.542
12-2026		0.098		0.078		0.458		0.000		0.000		0.000		0.958		31.468		20.782
S TOT		2.635		2.063		6.441		0.000		0.000		0.000		31.468		31.468		20.782
AFTER		1.018		0.808		8.218		0.000		0.000		0.000		6.425		37.893		21.797
TOTAL		3.653		2.871		14.659		0.000		0.000		0.000		37.893		37.893		21.797

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		197.074		144.616
GROSS CUM., MB & MMF		46.429		49.794
GROSS RES., MB & MMF		150.645		94.822
NET RES., MB & MMF		0.551		0.347
NET REVENUE, M$		57.429		1.648
INITIAL PRICE, $		-6.240		-0.830
INITIAL N.I., PCT.		0.366		0.366

		P.W. %		P.W., M$
LIFE, YRS.	30.58		5.00		27.450
DISCOUNT %	10.00		10.00		21.797
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		20.234
DISCOUNTED PAYOUT, YRS.	0.00		15.00		18.355
UNDISCOUNTED NET/INVEST.	0.00		18.00		16.880
DISCOUNTED NET/INVEST.	0.00		20.00		16.062
RATE-OF-RETURN, PCT.	100.00		30.00		13.198
INITIAL W.I., PCT.	0.457		60.00		9.439
			80.00		8.260
			100.00		7.474

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 91

Riede 4-14H S2-11	DATE	: 03/09/2012
163N 100W 2	TIME	: 12:42:23
THREE FORKS	DBS	: MHA
SM ENERGY	SETTINGS	: SETDATA
1PDP	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		59.230		52.420		0.152		0.134		91.830		2.720		13.920		0.365		14.285
12-2013		29.472		24.889		0.075		0.064		88.660		3.350		6.688		0.213		6.901
12-2014		22.745		18.385		0.058		0.047		85.760		3.710		4.992		0.175		5.167
12-2015		19.220		14.874		0.049		0.038		91.180		5.120		4.485		0.195		4.680
12-2016		16.954		12.563		0.043		0.032		93.130		5.240		4.041		0.168		4.210
12-2017		15.340		10.885		0.039		0.028		95.110		5.360		3.734		0.149		3.883
12-2018		14.114		9.590		0.036		0.025		97.140		5.490		3.509		0.135		3.644
12-2019		13.111		8.531		0.034		0.022		99.210		5.610		3.329		0.122		3.452
12-2020		12.193		7.597		0.031		0.019		101.320		5.740		3.162		0.112		3.273
12-2021		11.340		6.766		0.029		0.017		103.470		5.870		3.003		0.102		3.105
12-2022		10.546		6.026		0.027		0.015		105.664		6.004		2.852		0.093		2.945
12-2023		9.808		5.366		0.025		0.014		107.902		6.141		2.708		0.084		2.793
12-2024		9.121		4.779		0.023		0.012		110.185		6.280		2.572		0.077		2.649
12-2025		8.483		4.256		0.022		0.011		112.514		6.422		2.443		0.070		2.513
12-2026		7.889		3.791		0.020		0.010		114.889		6.567		2.320		0.064		2.383
S TOT		259.565		190.718		0.664		0.488		95.976		4.350		63.759		2.124		65.882
AFTER		88.037		29.201		0.225		0.075		141.229		7.851		31.822		0.587		32.408
TOTAL		347.602		219.919		0.890		0.563		107.437		4.815		95.580		2.710		98.290

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MOYEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		0.883		0.696		0.531		0.000		0.000		0.000		12.176		12.176		11.739
12-2013		0.427		0.334		0.393		0.000		0.000		0.000		5.747		17.922		16.737
12-2014		0.320		0.250		0.366		0.000		0.000		0.000		4.232		22.155		20.078
12-2015		0.290		0.224		0.354		0.000		0.000		0.000		3.812		25.967		22.813
12-2016		0.260		0.202		0.348		0.000		0.000		0.000		3.399		29.366		25.030
12-2017		0.240		0.187		0.346		0.000		0.000		0.000		3.111		32.476		26.874
12-2018		0.225		0.175		0.345		0.000		0.000		0.000		2.898		35.374		28.435
12-2019		0.214		0.166		0.346		0.000		0.000		0.000		2.725		38.099		29.770
12-2020		0.202		0.158		0.347		0.000		0.000		0.000		2.566		40.665		30.912
12-2021		0.192		0.150		0.349		0.000		0.000		0.000		2.413		43.078		31.889
12-2022		0.182		0.143		0.351		0.000		0.000		0.000		2.269		45.347		32.724
12-2023		0.173		0.135		0.354		0.000		0.000		0.000		2.131		47.478		33.436
12-2024		0.164		0.129		0.356		0.000		0.000		0.000		2.000		49.478		34.045
12-2025		0.155		0.122		0.360		0.000		0.000		0.000		1.875		51.354		34.563
12-2026		0.147		0.116		0.363		0.000		0.000		0.000		1.757		53.110		35.005
S TOT		4.075		3.188		5.509		0.000		0.000		0.000		53.110		53.110		35.005
AFTER		2.003		1.591		11.188		0.000		0.000		0.000		17.626		70.737		37.325
TOTAL		6.078		4.779		16.697		0.000		0.000		0.000		70.737		70.737		37.325

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		401.024		266.114
GROSS CUM., MB & MMF		53.422		46.195
GROSS RES., MB & MMF		347.602		219.919
NET RES., MB & MMF		0.890		0.563
NET REVENUE, M$		95.580		2.710
INITIAL PRICE, $		91.830		2.720
INITIAL N.I., PCT.		0.256		0.256

		P.W. %		P.W., M$
LIFE, YRS.	40.25		5.00		48.152
DISCOUNT %	10.00		10.00		37.325
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		34.489
DISCOUNTED PAYOUT, YRS.	0.00		15.00		31.162
UNDISCOUNTED NET/INVEST.	0.00		18.00		28.604
DISCOUNTED NET/INVEST.	0.00		20.00		27.204
RATE-OF-RETURN, PCT.	100.00		30.00		22.391
INITIAL W.I., PCT.	0.342		60.00		16.216
			80.00		14.296
			100.00		13.017

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 92

Rostad 9-33H S28-33	DATE	: 03/09/2012
160N 97W 28	TIME	: 12:42:23
THREE FORKS	DBS	: MHA
CONTINENTAL	SETTINGS	: SETDATA
1PDP	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		9.610		21.563		0.048		0.108		91.830		2.720		4.413		0.293		4.706
12-2013		7.006		14.738		0.035		0.074		88.660		3.350		3.106		0.247		3.353
12-2014		5.747		11.341		0.029		0.057		85.760		3.710		2.465		0.210		2.675
12-2015		4.971		9.202		0.025		0.046		91.180		5.120		2.266		0.236		2.502
12-2016		4.431		7.697		0.022		0.038		93.130		5.240		2.063		0.202		2.265
12-2017		4.029		6.567		0.020		0.033		95.110		5.360		1.916		0.176		2.092
12-2018		3.716		5.682		0.019		0.028		97.140		5.490		1.805		0.156		1.961
12-2019		3.453		4.955		0.017		0.025		99.210		5.610		1.713		0.139		1.852
12-2020		3.211		4.324		0.016		0.022		101.320		5.740		1.627		0.124		1.751
12-2021		2.986		3.774		0.015		0.019		103.470		5.870		1.545		0.111		1.656
12-2022		2.777		3.293		0.014		0.016		105.664		6.004		1.467		0.099		1.566
12-2023		2.583		2.874		0.013		0.014		107.902		6.141		1.393		0.088		1.482
12-2024		2.402		2.508		0.012		0.013		110.185		6.280		1.323		0.079		1.402
12-2025		2.234		2.189		0.011		0.011		112.514		6.422		1.257		0.070		1.327
12-2026		2.077		1.910		0.010		0.010		114.889		6.567		1.193		0.063		1.256
S TOT		61.234		102.616		0.306		0.513		96.521		4.468		29.552		2.292		31.844
AFTER		9.635		7.244		0.048		0.036		123.035		7.037		5.927		0.255		6.182
TOTAL		70.870		109.860		0.354		0.549		100.125		4.637		35.479		2.547		38.026

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		0.292		0.221		0.885		0.000		0.000		0.000		3.308		3.308		3.168
12-2013		0.208		0.155		0.796		0.000		0.000		0.000		2.194		5.502		5.075
12-2014		0.166		0.123		0.753		0.000		0.000		0.000		1.633		7.136		6.364
12-2015		0.155		0.113		0.729		0.000		0.000		0.000		1.504		8.640		7.444
12-2016		0.141		0.103		0.714		0.000		0.000		0.000		1.307		9.947		8.297
12-2017		0.130		0.096		0.706		0.000		0.000		0.000		1.161		11.108		8.985
12-2018		0.122		0.090		0.702		0.000		0.000		0.000		1.047		12.155		9.549
12-2019		0.115		0.086		0.700		0.000		0.000		0.000		0.951		13.106		10.015
12-2020		0.109		0.081		0.700		0.000		0.000		0.000		0.861		13.967		10.398
12-2021		0.103		0.077		0.703		0.000		0.000		0.000		0.773		14.740		10.712
12-2022		0.097		0.073		0.706		0.000		0.000		0.000		0.690		15.430		10.965
12-2023		0.092		0.070		0.711		0.000		0.000		0.000		0.610		16.039		11.170
12-2024		0.087		0.066		0.716		0.000		0.000		0.000		0.533		16.572		11.332
12-2025		0.082		0.063		0.722		0.000		0.000		0.000		0.460		17.032		11.459
12-2026		0.078		0.060		0.729		0.000		0.000		0.000		0.389		17.421		11.557
S TOT		1.974		1.478		10.972		0.000		0.000		0.000		17.421		17.421		11.557
AFTER		0.383		0.296		4.493		0.000		0.000		0.000		1.010		18.431		11.760
TOTAL		2.356		1.774		15.465		0.000		0.000		0.000		18.431		18.431		11.760

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		94.635		147.859
GROSS CUM., MB & MMF		23.766		37.998
GROSS RES., MB & MMF		70.870		109.860
NET RES., MB & MMF		0.354		0.549
NET REVENUE, M$		35.479		2.547
INITIAL PRICE, $		-6.240		-0.830
INITIAL N.I., PCT.		0.500		0.500

		P.W. %		P.W., M$
LIFE, YRS.	20.92		5.00		14.335
DISCOUNT %	10.00		10.00		11.760
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		10.990
DISCOUNTED PAYOUT, YRS.	0.00		15.00		10.029
UNDISCOUNTED NET/INVEST.	0.00		18.00		9.246
DISCOUNTED NET/INVEST.	0.00		20.00		8.800
RATE-OF-RETURN, PCT.	100.00		30.00		7.185
INITIAL W.I., PCT.	0.625		60.00		4.969
			80.00		4.267
			100.00		3.801

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 93

Torgeson 1-15H S3-10	DATE	: 03/09/2012
163N 100W 3	TIME	: 12:42:23
THREE FORKS	DBS	: MHA
SM ENERGY	SETTINGS	: SETDATA
1PDP	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		68.793		59.676		2.392		2.075		91.830		2.720		219.644		5.644		225.288
12-2013		43.465		35.722		1.511		1.242		88.660		3.350		133.985		4.161		138.146
12-2014		34.604		26.982		1.203		0.938		85.760		3.710		103.183		3.481		106.664
12-2015		29.634		21.928		1.030		0.762		91.180		5.120		93.946		3.903		97.849
12-2016		26.337		18.496		0.916		0.643		93.130		5.240		85.282		3.370		88.651
12-2017		23.945		15.960		0.833		0.555		95.110		5.360		79.182		2.974		82.156
12-2018		22.105		13.984		0.769		0.486		97.140		5.490		74.660		2.669		77.329
12-2019		20.634		12.389		0.717		0.431		99.210		5.610		71.177		2.417		73.593
12-2020		19.423		11.069		0.675		0.385		101.320		5.740		68.423		2.209		70.632
12-2021		18.400		9.953		0.640		0.346		103.470		5.870		66.196		2.031		68.227
12-2022		17.479		8.974		0.608		0.312		105.664		6.004		64.214		1.873		66.088
12-2023		16.605		8.092		0.577		0.281		107.902		6.141		62.296		1.728		64.023
12-2024		15.775		7.297		0.548		0.254		110.185		6.280		60.433		1.593		62.026
12-2025		14.986		6.580		0.521		0.229		112.514		6.422		58.625		1.469		60.094
12-2026		14.237		5.933		0.495		0.206		114.889		6.567		56.869		1.355		58.224
S TOT		386.423		263.034		13.435		9.145		96.618		4.470		1298.115		40.877		1338.992
AFTER		225.571		52.976		7.843		1.842		153.353		8.157		1202.724		15.024		1217.748
TOTAL		611.994		316.010		21.278		10.987		117.530		5.088		2500.838		55.901		2556.740

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		13.930		10.982		7.364		0.000		0.000		0.000		193.011		193.011		185.157
12-2013		8.544		6.699		5.876		0.000		0.000		0.000		117.027		310.038		286.868
12-2014		6.598		5.159		5.397		0.000		0.000		0.000		89.509		399.548		357.532
12-2015		6.055		4.697		5.158		0.000		0.000		0.000		81.939		481.487		416.316
12-2016		5.485		4.264		5.023		0.000		0.000		0.000		73.879		555.365		464.488
12-2017		5.083		3.959		4.945		0.000		0.000		0.000		68.170		623.535		504.891
12-2018		4.784		3.733		4.902		0.000		0.000		0.000		63.911		687.446		539.323
12-2019		4.552		3.559		4.883		0.000		0.000		0.000		60.600		748.045		569.001
12-2020		4.369		3.421		4.881		0.000		0.000		0.000		57.961		806.007		594.804
12-2021		4.220		3.310		4.892		0.000		0.000		0.000		55.806		861.813		617.388
12-2022		4.087		3.211		4.911		0.000		0.000		0.000		53.879		915.692		637.211
12-2023		3.959		3.115		4.934		0.000		0.000		0.000		52.015		967.708		654.608
12-2024		3.835		3.022		4.962		0.000		0.000		0.000		50.208		1017.915		669.874
12-2025		3.716		2.931		4.993		0.000		0.000		0.000		48.454		1066.369		683.267
12-2026		3.600		2.843		5.029		0.000		0.000		0.000		46.752		1113.121		695.015
S TOT		82.816		64.906		78.150		0.000		0.000		0.000		1113.121		1113.121		695.015
AFTER		75.245		60.136		225.787		0.000		0.000		0.000		856.580		1969.701		776.392
TOTAL		158.060		125.042		303.937		0.000		0.000		0.000		1969.701		1969.701		776.392

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		669.857		359.083
GROSS CUM., MB & MMF		57.863		43.073
GROSS RES., MB & MMF		611.994		316.010
NET RES., MB & MMF		21.278		10.987
NET REVENUE, M$		2500.839		55.901
INITIAL PRICE, $		91.830		2.720
INITIAL N.I., PCT.		3.477		3.477

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		1096.014
DISCOUNT %	10.00		10.00		776.391
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		701.736
DISCOUNTED PAYOUT, YRS.	0.00		15.00		618.222
UNDISCOUNTED NET/INVEST.	0.00		18.00		556.707
DISCOUNTED NET/INVEST.	0.00		20.00		523.898
RATE-OF-RETURN, PCT.	100.00		30.00		415.233
INITIAL W.I., PCT.	4.375		60.00		283.375
			80.00		243.921
			100.00		218.061

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 94

Wolter 1-28H S16-21	DATE	: 03/09/2012
163N 100W 16	TIME	: 12:42:23
THREE FORKS	DBS	: MHA
SM ENERGY	SETTINGS	: SETDATA
1PDP	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		71.416		61.833		0.741		0.642		91.830		2.720		68.081		1.746		69.827
12-2013		46.929		38.910		0.487		0.404		88.660		3.350		43.193		1.353		44.547
12-2014		37.689		29.951		0.391		0.311		85.760		3.710		33.554		1.154		34.708
12-2015		32.404		24.687		0.336		0.256		91.180		5.120		30.673		1.312		31.985
12-2016		28.866		21.083		0.300		0.219		93.130		5.240		27.908		1.147		29.055
12-2017		26.283		18.405		0.273		0.191		95.110		5.360		25.951		1.024		26.975
12-2018		24.285		16.305		0.252		0.169		97.140		5.490		24.490		0.929		25.419
12-2019		22.579		14.535		0.234		0.151		99.210		5.610		23.255		0.847		24.101
12-2020		20.999		12.961		0.218		0.135		101.320		5.740		22.087		0.772		22.859
12-2021		19.529		11.557		0.203		0.120		103.470		5.870		20.977		0.704		21.681
12-2022		18.162		10.305		0.189		0.107		105.664		6.004		19.922		0.642		20.565
12-2023		16.891		9.189		0.175		0.095		107.902		6.141		18.920		0.586		19.506
12-2024		15.708		8.194		0.163		0.085		110.185		6.280		17.968		0.534		18.502
12-2025		14.609		7.306		0.152		0.076		112.514		6.422		17.063		0.487		17.550
12-2026		13.586		6.515		0.141		0.068		114.889		6.567		16.204		0.444		16.648
S TOT		409.934		291.736		4.256		3.029		96.401		4.518		410.246		13.682		423.928
AFTER		164.912		52.518		1.712		0.545		146.899		8.019		251.490		4.372		255.863
TOTAL		574.846		344.254		5.968		3.574		110.888		5.052		661.737		18.054		679.791

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		4.317		3.404		2.090		0.000		0.000		0.000		60.015		60.015		57.534
12-2013		2.755		2.160		1.713		0.000		0.000		0.000		37.919		97.934		90.486
12-2014		2.147		1.678		1.582		0.000		0.000		0.000		29.301		127.235		113.617
12-2015		1.979		1.534		1.516		0.000		0.000		0.000		26.956		154.191		132.955
12-2016		1.798		1.395		1.478		0.000		0.000		0.000		24.383		178.574		148.853
12-2017		1.669		1.298		1.457		0.000		0.000		0.000		22.551		201.125		162.219
12-2018		1.573		1.224		1.445		0.000		0.000		0.000		21.177		222.302		173.628
12-2019		1.491		1.163		1.439		0.000		0.000		0.000		20.009		242.311		183.428
12-2020		1.414		1.104		1.434		0.000		0.000		0.000		18.907		261.218		191.846
12-2021		1.341		1.049		1.433		0.000		0.000		0.000		17.859		279.077		199.074
12-2022		1.272		0.996		1.433		0.000		0.000		0.000		16.864		295.940		205.280
12-2023		1.206		0.946		1.435		0.000		0.000		0.000		15.919		311.859		210.605
12-2024		1.144		0.898		1.439		0.000		0.000		0.000		15.021		326.880		215.172
12-2025		1.085		0.853		1.445		0.000		0.000		0.000		14.167		341.047		219.089
12-2026		1.029		0.810		1.452		0.000		0.000		0.000		13.356		354.403		222.446
S TOT		26.222		20.512		22.791		0.000		0.000		0.000		354.403		354.403		222.446
AFTER		15.814		12.575		62.460		0.000		0.000		0.000		165.014		519.416		241.672
TOTAL		42.036		33.087		85.252		0.000		0.000		0.000		519.416		519.416		241.672

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		671.729		401.579
GROSS CUM., MB & MMF		96.883		57.325
GROSS RES., MB & MMF		574.846		344.254
NET RES., MB & MMF		5.968		3.574
NET REVENUE, M$		661.737		18.054
INITIAL PRICE, $		91.830		2.720
INITIAL N.I., PCT.		1.038		1.038

		P.W. %		P.W., M$
LIFE, YRS.	48.75		5.00		326.280
DISCOUNT %	10.00		10.00		241.672
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		220.307
DISCOUNTED PAYOUT, YRS.	0.00		15.00		195.627
UNDISCOUNTED NET/INVEST.	0.00		18.00		176.932
DISCOUNTED NET/INVEST.	0.00		20.00		166.791
RATE-OF-RETURN, PCT.	100.00		30.00		132.473
INITIAL W.I., PCT.	1.298		60.00		89.844
			80.00		77.032
			100.00		68.650

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 95

Wolter 13-9H S9-4	DATE	: 03/09/2012
163N 100W 9	TIME	: 12:42:23
THREE FORKS	DBS	: MHA
SM ENERGY	SETTINGS	: SETDATA
1PDP	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		70.874		82.858		3.295		3.852		91.830		2.720		302.587		10.478		313.065
12-2013		35.266		38.809		1.640		1.804		88.660		3.350		145.367		6.044		151.412
12-2014		27.217		28.307		1.265		1.316		85.760		3.710		108.517		4.882		113.400
12-2015		22.998		22.614		1.069		1.051		91.180		5.120		97.492		5.383		102.875
12-2016		20.287		18.862		0.943		0.877		93.130		5.240		87.841		4.595		92.436
12-2017		18.356		16.138		0.853		0.750		95.110		5.360		81.167		4.022		85.189
12-2018		16.889		14.041		0.785		0.653		97.140		5.490		76.276		3.584		79.860
12-2019		15.727		12.364		0.731		0.575		99.210		5.610		72.538		3.225		75.763
12-2020		14.775		10.985		0.687		0.511		101.320		5.740		69.600		2.931		72.532
12-2021		13.978		9.827		0.650		0.457		103.470		5.870		67.241		2.682		69.923
12-2022		13.275		8.826		0.617		0.410		105.664		6.004		65.213		2.464		67.676
12-2023		12.611		7.929		0.586		0.369		107.902		6.141		63.264		2.264		65.528
12-2024		11.980		7.124		0.557		0.331		110.185		6.280		61.373		2.080		63.453
12-2025		11.381		6.400		0.529		0.298		112.514		6.422		59.536		1.911		61.447
12-2026		10.812		5.750		0.503		0.267		114.889		6.567		57.753		1.756		59.509
S TOT		316.429		290.836		14.711		13.521		96.236		4.312		1415.766		58.301		1474.068
AFTER		171.316		49.650		7.965		2.308		153.353		8.116		1221.422		18.734		1240.156
TOTAL		487.745		340.486		22.676		15.830		116.298		4.866		2637.188		77.035		2714.224

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		19.366		15.129		10.135		0.000		0.000		0.000		268.434		268.434		258.811
12-2013		9.369		7.268		7.270		0.000		0.000		0.000		127.504		395.939		369.675
12-2014		7.018		5.426		6.690		0.000		0.000		0.000		94.266		490.205		444.106
12-2015		6.370		4.875		6.429		0.000		0.000		0.000		85.202		575.406		505.237
12-2016		5.723		4.392		6.295		0.000		0.000		0.000		76.026		651.433		554.813
12-2017		5.273		4.058		6.227		0.000		0.000		0.000		69.630		721.063		596.084
12-2018		4.943		3.814		6.199		0.000		0.000		0.000		64.904		785.967		631.052
12-2019		4.689		3.627		6.199		0.000		0.000		0.000		61.249		847.216		661.049
12-2020		4.488		3.480		6.218		0.000		0.000		0.000		58.345		905.561		687.024
12-2021		4.326		3.362		6.252		0.000		0.000		0.000		55.983		961.544		709.680
12-2022		4.187		3.261		6.295		0.000		0.000		0.000		53.933		1015.477		729.523
12-2023		4.054		3.163		6.344		0.000		0.000		0.000		51.967		1067.444		746.904
12-2024		3.925		3.069		6.398		0.000		0.000		0.000		50.061		1117.505		762.125
12-2025		3.801		2.977		6.457		0.000		0.000		0.000		48.213		1165.718		775.452
12-2026		3.680		2.888		6.520		0.000		0.000		0.000		46.421		1212.139		787.117
S TOT		91.213		70.788		99.927		0.000		0.000		0.000		1212.139		1212.139		787.117
AFTER		76.641		61.071		300.968		0.000		0.000		0.000		801.476		2013.615		865.986
TOTAL		167.854		131.859		400.895		0.000		0.000		0.000		2013.615		2013.615		865.986

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		535.233		386.428
GROSS CUM., MB & MMF		47.488		45.942
GROSS RES., MB & MMF		487.745		340.486
NET RES., MB & MMF		22.676		15.830
NET REVENUE, M$		2637.188		77.035
INITIAL PRICE, $		91.830		2.720
INITIAL N.I., PCT.		4.649		4.649

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		1181.069
DISCOUNT %	10.00		10.00		865.986
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		791.170
DISCOUNTED PAYOUT, YRS.	0.00		15.00		706.826
UNDISCOUNTED NET/INVEST.	0.00		18.00		644.214
DISCOUNTED NET/INVEST.	0.00		20.00		610.634
RATE-OF-RETURN, PCT.	100.00		30.00		498.322
INITIAL W.I., PCT.	5.919		60.00		358.852
			80.00		316.056
			100.00		287.610

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 96

Thomte 8-5 S8-5	DATE	: 03/09/2012
163N 99W 8	TIME	: 12:42:23
THREE FORKS	DBS	: MHA
SAMSON	SETTINGS	: SETDATA
2PNP	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		54.984		48.529		1.372		1.211		91.830		2.720		126.013		3.294		129.307
12-2013		36.905		30.892		0.921		0.771		88.660		3.350		81.659		2.583		84.242
12-2014		28.131		22.258		0.702		0.555		85.760		3.710		60.209		2.061		62.270
12-2015		23.653		17.697		0.590		0.442		91.180		5.120		53.825		2.261		56.087
12-2016		20.809		14.724		0.519		0.367		93.130		5.240		48.366		1.926		50.292
12-2017		18.796		12.578		0.469		0.314		95.110		5.360		44.616		1.683		46.299
12-2018		17.274		10.933		0.431		0.273		97.140		5.490		41.879		1.498		43.377
12-2019		16.071		9.620		0.401		0.240		99.210		5.610		39.793		1.347		41.140
12-2020		15.089		8.543		0.377		0.213		101.320		5.740		38.156		1.224		39.380
12-2021		14.268		7.640		0.356		0.191		103.470		5.870		36.844		1.119		37.964
12-2022		13.548		6.862		0.338		0.171		105.664		6.004		35.728		1.028		36.756
12-2023		12.871		6.166		0.321		0.154		107.902		6.141		34.661		0.945		35.606
12-2024		12.227		5.541		0.305		0.138		110.185		6.280		33.624		0.868		34.493
12-2025		11.616		4.979		0.290		0.124		112.514		6.422		32.618		0.798		33.416
12-2026		11.035		4.474		0.275		0.112		114.889		6.567		31.641		0.733		32.374
S TOT		307.278		211.436		7.669		5.277		96.447		4.428		739.634		23.368		763.002
AFTER		174.846		38.689		4.364		0.966		153.353		8.118		669.181		7.838		677.019
TOTAL		482.123		250.125		12.033		6.242		117.084		4.999		1408.815		31.207		1440.021

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		7.995		6.301		4.355		0.000		0.000		12.717		97.939		97.939		92.742
12-2013		5.210		4.083		3.977		0.000		0.000		0.000		70.971		168.911		154.461
12-2014		3.852		3.010		3.634		0.000		0.000		0.000		51.774		220.685		195.343
12-2015		3.471		2.691		3.482		0.000		0.000		0.000		46.443		267.128		228.666
12-2016		3.112		2.418		3.404		0.000		0.000		0.000		41.358		308.486		255.635
12-2017		2.864		2.231		3.364		0.000		0.000		0.000		37.840		346.325		278.064
12-2018		2.683		2.094		3.347		0.000		0.000		0.000		35.253		381.578		297.057
12-2019		2.545		1.990		3.345		0.000		0.000		0.000		33.260		414.838		313.346
12-2020		2.436		1.908		3.354		0.000		0.000		0.000		31.683		446.521		327.451
12-2021		2.348		1.842		3.371		0.000		0.000		0.000		30.403		476.924		339.755
12-2022		2.273		1.786		3.393		0.000		0.000		0.000		29.303		506.227		350.536
12-2023		2.202		1.733		3.419		0.000		0.000		0.000		28.252		534.479		359.985
12-2024		2.133		1.681		3.447		0.000		0.000		0.000		27.231		561.710		368.265
12-2025		2.066		1.631		3.478		0.000		0.000		0.000		26.241		587.951		375.519
12-2026		2.002		1.582		3.512		0.000		0.000		0.000		25.279		613.231		381.871
S TOT		47.191		36.982		52.881		0.000		0.000		12.717		613.231		613.231		381.871
AFTER		41.831		33.459		161.805		0.000		0.000		0.000		439.924		1053.154		424.990
TOTAL		89.023		70.441		214.687		0.000		0.000		12.717		1053.154		1053.154		424.990

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		482.123		250.125
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		482.123		250.125
NET RES., MB & MMF		12.032		6.242
NET REVENUE, M$		1408.815		31.207
INITIAL PRICE, $		91.830		2.720
INITIAL N.I., PCT.		2.496		2.496

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		597.061
DISCOUNT %	10.00		10.00		424.990
UNDISCOUNTED PAYOUT, YRS.	0.11		12.00		384.180
DISCOUNTED PAYOUT, YRS.	0.12		15.00		338.190
UNDISCOUNTED NET/INVEST.	83.81		18.00		304.057
DISCOUNTED NET/INVEST.	34.69		20.00		285.752
RATE-OF-RETURN, PCT.	100.00		30.00		224.520
INITIAL W.I., PCT.	3.179		60.00		148.457
			80.00		125.137
			100.00		109.666

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 97

Blazer 2-11 S2-11	DATE	: 03/09/2012
163N 98W 2	TIME	: 12:42:23
THREE FORKS	DBS	: MHA
SAMSON	SETTINGS	: SETDATA
4PUD	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		51.162		45.238		0.384		0.339		91.830		2.720		35.247		0.923		36.170
12-2013		38.085		32.032		0.286		0.240		88.660		3.350		25.332		0.805		26.137
12-2014		28.631		22.760		0.215		0.171		85.760		3.710		18.421		0.633		19.054
12-2015		23.947		18.000		0.180		0.135		91.180		5.120		16.381		0.691		17.072
12-2016		21.008		14.933		0.158		0.112		93.130		5.240		14.678		0.587		15.265
12-2017		18.942		12.735		0.142		0.096		95.110		5.360		13.516		0.512		14.028
12-2018		17.387		11.056		0.130		0.083		97.140		5.490		12.671		0.455		13.126
12-2019		16.162		9.720		0.121		0.073		99.210		5.610		12.029		0.409		12.438
12-2020		15.164		8.626		0.114		0.065		101.320		5.740		11.527		0.371		11.898
12-2021		14.331		7.710		0.108		0.058		103.470		5.870		11.125		0.340		11.464
12-2022		13.606		6.924		0.102		0.052		105.664		6.004		10.786		0.312		11.098
12-2023		12.926		6.221		0.097		0.047		107.902		6.141		10.464		0.287		10.750
12-2024		12.280		5.590		0.092		0.042		110.185		6.280		10.151		0.263		10.414
12-2025		11.666		5.023		0.088		0.038		112.514		6.422		9.847		0.242		10.089
12-2026		11.082		4.514		0.083		0.034		114.889		6.567		9.552		0.222		9.774
S TOT		306.379		211.081		2.299		1.584		96.464		4.454		221.725		7.054		228.779
AFTER		175.594		39.036		1.317		0.293		153.353		8.118		202.018		2.377		204.395
TOTAL		481.974		250.117		3.616		1.876		117.190		5.026		423.743		9.431		433.174

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		2.236		1.762		1.178		0.000		0.000		3.751		27.242		27.242		25.614
12-2013		1.617		1.267		1.189		0.000		0.000		0.000		22.065		49.307		44.806
12-2014		1.179		0.921		1.078		0.000		0.000		0.000		15.876		65.183		57.343
12-2015		1.056		0.819		1.031		0.000		0.000		0.000		14.166		79.349		67.508
12-2016		0.945		0.734		1.007		0.000		0.000		0.000		12.580		91.929		75.711
12-2017		0.868		0.676		0.994		0.000		0.000		0.000		11.490		103.419		82.521
12-2018		0.812		0.634		0.989		0.000		0.000		0.000		10.692		114.111		88.282
12-2019		0.769		0.601		0.988		0.000		0.000		0.000		10.080		124.191		93.218
12-2020		0.736		0.576		0.990		0.000		0.000		0.000		9.596		133.786		97.490
12-2021		0.709		0.556		0.995		0.000		0.000		0.000		9.204		142.990		101.215
12-2022		0.686		0.539		1.002		0.000		0.000		0.000		8.870		151.861		104.479
12-2023		0.665		0.523		1.009		0.000		0.000		0.000		8.553		160.414		107.340
12-2024		0.644		0.508		1.018		0.000		0.000		0.000		8.245		168.659		109.846
12-2025		0.624		0.492		1.027		0.000		0.000		0.000		7.946		176.605		112.043
12-2026		0.604		0.478		1.036		0.000		0.000		0.000		7.656		184.261		113.967
S TOT		14.150		11.086		15.530		0.000		0.000		3.751		184.261		184.261		113.967
AFTER		12.629		10.101		47.737		0.000		0.000		0.000		133.928		318.190		127.052
TOTAL		26.779		21.187		63.267		0.000		0.000		3.751		318.190		318.190		127.052

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		481.974		250.117
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		481.974		250.117
NET RES., MB & MMF		3.616		1.876
NET REVENUE, M$		423.743		9.431
INITIAL PRICE, $		91.830		2.720
INITIAL N.I., PCT.		0.750		0.750

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		179.361
DISCOUNT %	10.00		10.00		127.052
UNDISCOUNTED PAYOUT, YRS.	0.12		12.00		114.644
DISCOUNTED PAYOUT, YRS.	0.13		15.00		100.654
UNDISCOUNTED NET/INVEST.	85.83		18.00		90.265
DISCOUNTED NET/INVEST.	34.87		20.00		84.689
RATE-OF-RETURN, PCT.	100.00		30.00		66.011
INITIAL W.I., PCT.	0.938		60.00		42.712
			80.00		35.539
			100.00		30.770

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 98

CHRISTIANSON 15-12	DATE	: 03/09/2012
163N 100W 12	TIME	: 12:42:23
THREE FORKS	DBS	: MHA
AE	SETTINGS	: SETDATA
4PUD	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		69.197		61.265		19.557		17.315		91.830		2.720		1795.892		47.096		1842.988
12-2013		49.986		42.214		14.127		11.931		88.660		3.350		1252.510		39.968		1292.477
12-2014		37.414		29.964		10.574		8.469		85.760		3.710		906.824		31.418		938.242
12-2015		31.241		23.738		8.830		6.709		91.180		5.120		805.076		34.350		839.426
12-2016		27.384		19.744		7.739		5.580		93.130		5.240		720.757		29.239		749.996
12-2017		24.678		16.884		6.974		4.772		95.110		5.360		663.343		25.577		688.919
12-2018		22.644		14.702		6.400		4.155		97.140		5.490		621.662		22.811		644.473
12-2019		21.043		12.965		5.947		3.664		99.210		5.610		590.016		20.556		610.573
12-2020		19.740		11.542		5.579		3.262		101.320		5.740		565.254		18.724		583.978
12-2021		18.652		10.350		5.272		2.925		103.470		5.870		545.453		17.170		562.623
12-2022		17.708		9.325		5.005		2.635		105.664		6.004		528.811		15.823		544.633
12-2023		16.822		8.407		4.754		2.376		107.902		6.141		513.011		14.590		527.601
12-2024		15.981		7.579		4.517		2.142		110.185		6.280		497.671		13.453		511.124
12-2025		15.182		6.833		4.291		1.931		112.514		6.422		482.779		12.403		495.182
12-2026		14.423		6.161		4.076		1.741		114.889		6.567		468.321		11.435		479.756
S TOT		402.094		281.671		113.641		79.607		96.421		4.455		10957.381		354.613		11311.992
AFTER		228.526		54.929		64.587		15.524		153.353		8.155		9904.540		126.600		10031.136
TOTAL		630.620		336.600		178.228		95.131		117.052		5.058		20861.920		481.213		21343.129

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		113.958		89.795		53.553		0.000		0.000		2768.586		-1182.903		-1182.903		-1265.545
12-2013		79.940		62.625		50.906		0.000		0.000		0.000		1099.005		-83.898		-309.612
12-2014		58.039		45.341		45.180		0.000		0.000		0.000		789.682		705.784		313.984
12-2015		51.946		40.254		42.645		0.000		0.000		0.000		704.581		1410.365		819.531
12-2016		46.407		36.038		41.270		0.000		0.000		0.000		626.281		2036.646		1227.931
12-2017		42.624		33.167		40.479		0.000		0.000		0.000		572.649		2609.295		1567.350
12-2018		39.870		31.083		40.033		0.000		0.000		0.000		533.487		3142.782		1854.776
12-2019		37.770		29.501		39.813		0.000		0.000		0.000		503.489		3646.271		2101.358
12-2020		36.121		28.263		39.752		0.000		0.000		0.000		479.841		4126.113		2314.981
12-2021		34.798		27.273		39.811		0.000		0.000		0.000		460.742		4586.854		2501.444
12-2022		33.683		26.441		39.952		0.000		0.000		0.000		444.558		5031.413		2664.998
12-2023		32.627		25.651		40.135		0.000		0.000		0.000		429.188		5460.601		2808.544
12-2024		31.606		24.884		40.353		0.000		0.000		0.000		414.282		5874.883		2934.508
12-2025		30.618		24.139		40.604		0.000		0.000		0.000		399.821		6274.704		3045.023
12-2026		29.662		23.416		40.888		0.000		0.000		0.000		385.790		6660.494		3141.966
S TOT		699.668		547.869		635.376		0.000		0.000		2768.586		6660.494		6660.494		3141.966
AFTER		619.834		495.227		1833.132		0.000		0.000		0.000		7082.946		13743.444		3813.974
TOTAL		1319.502		1043.096		2468.508		0.000		0.000		2768.586		13743.440		13743.444		3813.974

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		630.620		336.600
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		630.620		336.600
NET RES., MB & MMF		178.228		95.131
NET REVENUE, M$		20861.920		481.213
INITIAL PRICE, $		91.830		2.720
INITIAL N.I., PCT.		28.262		28.262

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		6484.598
DISCOUNT %	10.00		10.00		3813.974
UNDISCOUNTED PAYOUT, YRS.	2.11		12.00		3186.528
DISCOUNTED PAYOUT, YRS.	2.50		15.00		2481.650
UNDISCOUNTED NET/INVEST.	5.96		18.00		1959.666
DISCOUNTED NET/INVEST.	2.38		20.00		1680.003
RATE-OF-RETURN, PCT.	46.50		30.00		744.902
INITIAL W.I., PCT.	35.495		60.00		-419.755
			80.00		-778.597
			100.00		-1017.373

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 99

CODY 16-11 16-11	DATE	: 03/09/2012
163N 101W 11	TIME	: 12:42:23
THREE FORKS	DBS	: MHA
AE	SETTINGS	: SETDATA
4PUD	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		58.321		51.811		14.553		12.928		91.830		2.720		1336.373		35.165		1371.538
12-2013		53.709		45.767		13.402		11.420		88.660		3.350		1188.194		38.257		1226.451
12-2014		38.852		31.391		9.695		7.833		85.760		3.710		831.416		29.060		860.476
12-2015		32.059		24.574		8.000		6.132		91.180		5.120		729.395		31.395		760.790
12-2016		27.928		20.313		6.969		5.069		93.130		5.240		648.996		26.559		675.555
12-2017		25.073		17.305		6.256		4.318		95.110		5.360		595.047		23.145		618.192
12-2018		22.948		15.030		5.726		3.750		97.140		5.490		556.234		20.589		576.823
12-2019		21.286		13.230		5.311		3.301		99.210		5.610		526.945		18.520		545.465
12-2020		19.940		11.761		4.976		2.935		101.320		5.740		504.125		16.845		520.971
12-2021		18.821		10.535		4.696		2.629		103.470		5.870		485.935		15.431		501.365
12-2022		17.860		9.487		4.456		2.367		105.664		6.004		470.892		14.213		485.105
12-2023		16.967		8.553		4.234		2.134		107.902		6.141		456.823		13.106		469.929
12-2024		16.118		7.711		4.022		1.924		110.185		6.280		443.163		12.084		455.247
12-2025		15.313		6.952		3.821		1.735		112.514		6.422		429.902		11.141		441.043
12-2026		14.547		6.268		3.630		1.564		114.889		6.567		417.028		10.272		427.300
S TOT		399.742		280.688		99.746		70.039		96.450		4.509		9620.467		315.782		9936.249
AFTER		230.488		55.885		57.513		13.945		153.353		8.155		8819.733		113.721		8933.454
TOTAL		630.229		336.574		157.259		83.984		117.260		5.114		18440.199		429.503		18869.703

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		84.807		66.819		38.581		0.000		0.000		2074.900		-893.568		-893.568		-933.312
12-2013		75.858		59.410		46.375		0.000		0.000		0.000		1044.808		151.240		-24.091
12-2014		53.229		41.571		40.344		0.000		0.000		0.000		725.332		876.572		548.766
12-2015		47.081		36.470		37.844		0.000		0.000		0.000		639.395		1515.967		1007.571
12-2016		41.802		32.450		36.516		0.000		0.000		0.000		564.787		2080.754		1375.884
12-2017		38.249		29.752		35.756		0.000		0.000		0.000		514.435		2595.189		1680.806
12-2018		35.686		27.812		35.323		0.000		0.000		0.000		478.003		3073.191		1938.343
12-2019		33.743		26.347		35.103		0.000		0.000		0.000		450.272		3523.463		2158.865
12-2020		32.225		25.206		35.032		0.000		0.000		0.000		428.508		3951.971		2349.637
12-2021		31.009		24.297		35.069		0.000		0.000		0.000		410.990		4362.961		2515.966
12-2022		30.001		23.545		35.186		0.000		0.000		0.000		396.373		4759.334		2661.793
12-2023		29.061		22.841		35.344		0.000		0.000		0.000		382.683		5142.018		2789.784
12-2024		28.151		22.158		35.532		0.000		0.000		0.000		369.406		5511.424		2902.103
12-2025		27.271		21.495		35.750		0.000		0.000		0.000		356.528		5867.952		3000.652
12-2026		26.419		20.851		35.997		0.000		0.000		0.000		344.032		6211.984		3087.102
S TOT		614.590		481.023		553.753		0.000		0.000		2074.900		6211.984		6211.984		3087.102
AFTER		552.010		440.987		1612.266		0.000		0.000		0.000		6328.190		12540.175		3686.805
TOTAL		1166.600		922.010		2166.019		0.000		0.000		2074.900		12540.174		12540.175		3686.805

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		630.229		336.574
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		630.229		336.574
NET RES., MB & MMF		157.259		83.984
NET REVENUE, M$		18440.195		429.503
INITIAL PRICE, $		91.830		2.720
INITIAL N.I., PCT.		24.953		24.953

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		6062.931
DISCOUNT %	10.00		10.00		3686.805
UNDISCOUNTED PAYOUT, YRS.	1.86		12.00		3130.126
DISCOUNTED PAYOUT, YRS.	2.04		15.00		2506.153
UNDISCOUNTED NET/INVEST.	7.04		18.00		2045.531
DISCOUNTED NET/INVEST.	2.81		20.00		1799.476
RATE-OF-RETURN, PCT.	59.84		30.00		982.910
INITIAL W.I., PCT.	31.201		60.00		-3.380
			80.00		-290.826
			100.00		-473.603

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 100

COPLAN 1-3	DATE	: 03/09/2012
163N 101W 3	TIME	: 12:42:23
THREE FORKS	DBS	: MHA
AE	SETTINGS	: SETDATA
4PUD	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		52.382		46.615		5.351		4.762		91.830		2.720		491.376		12.952		504.328
12-2013		55.938		47.883		5.714		4.891		88.660		3.350		506.620		16.386		523.006
12-2014		39.638		32.167		4.049		3.286		85.760		3.710		347.251		12.191		359.442
12-2015		32.493		25.016		3.319		2.555		91.180		5.120		302.642		13.084		315.726
12-2016		28.212		20.609		2.882		2.105		93.130		5.240		268.395		11.032		279.427
12-2017		25.278		17.523		2.582		1.790		95.110		5.360		245.594		9.594		255.189
12-2018		23.105		15.199		2.360		1.553		97.140		5.490		229.269		8.524		237.792
12-2019		21.411		13.366		2.187		1.365		99.210		5.610		216.988		7.660		224.648
12-2020		20.043		11.873		2.047		1.213		101.320		5.740		207.442		6.962		214.404
12-2021		18.907		10.629		1.931		1.086		103.470		5.870		199.844		6.374		206.218
12-2022		17.936		9.569		1.832		0.978		105.664		6.004		193.602		5.869		199.471
12-2023		17.040		8.627		1.741		0.881		107.902		6.141		187.817		5.412		193.229
12-2024		16.188		7.778		1.654		0.795		110.185		6.280		182.201		4.990		187.191
12-2025		15.378		7.013		1.571		0.716		112.514		6.422		176.749		4.601		181.349
12-2026		14.609		6.322		1.492		0.646		114.889		6.567		171.456		4.242		175.697
S TOT		398.558		280.190		40.713		28.622		96.461		4.537		3927.244		129.871		4057.115
AFTER		231.475		56.370		23.646		5.758		153.353		8.155		3626.118		46.959		3673.077
TOTAL		630.033		336.560		64.359		34.380		117.363		5.143		7553.363		176.830		7730.192

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		31.184		24.569		14.055		0.000		0.000		854.881		-420.362		-420.362		-422.240
12-2013		32.349		25.331		19.508		0.000		0.000		0.000		445.818		25.456		-34.160
12-2014		22.235		17.363		16.764		0.000		0.000		0.000		303.081		328.537		205.227
12-2015		19.539		15.132		15.670		0.000		0.000		0.000		265.385		593.922		395.664
12-2016		17.290		13.420		15.096		0.000		0.000		0.000		233.620		827.542		548.017
12-2017		15.789		12.280		14.769		0.000		0.000		0.000		212.351		1039.893		673.886
12-2018		14.711		11.463		14.582		0.000		0.000		0.000		197.036		1236.929		780.045
12-2019		13.897		10.849		14.485		0.000		0.000		0.000		185.416		1422.345		870.854
12-2020		13.262		10.372		14.452		0.000		0.000		0.000		176.318		1598.662		949.351
12-2021		12.755		9.992		14.464		0.000		0.000		0.000		169.006		1767.669		1017.749
12-2022		12.336		9.680		14.511		0.000		0.000		0.000		162.943		1930.612		1077.696
12-2023		11.949		9.391		14.575		0.000		0.000		0.000		157.313		2087.925		1130.311
12-2024		11.575		9.110		14.652		0.000		0.000		0.000		151.853		2239.779		1176.482
12-2025		11.213		8.837		14.741		0.000		0.000		0.000		146.557		2386.336		1216.993
12-2026		10.863		8.573		14.842		0.000		0.000		0.000		141.419		2527.755		1252.529
S TOT		250.949		196.362		227.168		0.000		0.000		854.881		2527.755		2527.755		1252.529
AFTER		226.965		181.306		664.449		0.000		0.000		0.000		2600.357		5128.112		1499.008
TOTAL		477.914		377.668		891.616		0.000		0.000		854.881		5128.112		5128.112		1499.008

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		630.033		336.561
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		630.033		336.561
NET RES., MB & MMF		64.359		34.380
NET REVENUE, M$		7553.361		176.830
INITIAL PRICE, $		91.830		2.720
INITIAL N.I., PCT.		10.215		10.215

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		2470.967
DISCOUNT %	10.00		10.00		1499.008
UNDISCOUNTED PAYOUT, YRS.	1.94		12.00		1272.040
DISCOUNTED PAYOUT, YRS.	2.14		15.00		1018.304
UNDISCOUNTED NET/INVEST.	7.00		18.00		831.672
DISCOUNTED NET/INVEST.	2.81		20.00		732.312
RATE-OF-RETURN, PCT.	63.69		30.00		405.241
INITIAL W.I., PCT.	12.855		60.00		22.175
			80.00		-83.617
			100.00		-148.018

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 101

Denali 31-21 S13-24	DATE	: 03/09/2012
163N 98W 13	TIME	: 12:42:23
THREE FORKS	DBS	: MHA
SAMSON	SETTINGS	: SETDATA
4PUD	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		47.153		41.769		0.012		0.010		91.830		2.720		1.075		0.028		1.103
12-2013		39.393		33.291		0.010		0.008		88.660		3.350		0.867		0.028		0.895
12-2014		29.160		23.289		0.007		0.006		85.760		3.710		0.621		0.021		0.642
12-2015		24.252		18.314		0.006		0.005		91.180		5.120		0.549		0.023		0.572
12-2016		21.212		15.149		0.005		0.004		93.130		5.240		0.491		0.020		0.510
12-2017		19.091		12.895		0.005		0.003		95.110		5.360		0.451		0.017		0.468
12-2018		17.502		11.181		0.004		0.003		97.140		5.490		0.422		0.015		0.437
12-2019		16.254		9.821		0.004		0.002		99.210		5.610		0.400		0.014		0.414
12-2020		15.240		8.709		0.004		0.002		101.320		5.740		0.383		0.012		0.396
12-2021		14.396		7.781		0.004		0.002		103.470		5.870		0.370		0.011		0.381
12-2022		13.665		6.986		0.003		0.002		105.664		6.004		0.359		0.010		0.369
12-2023		12.981		6.277		0.003		0.002		107.902		6.141		0.348		0.010		0.357
12-2024		12.332		5.640		0.003		0.001		110.185		6.280		0.337		0.009		0.346
12-2025		11.716		5.068		0.003		0.001		112.514		6.422		0.327		0.008		0.335
12-2026		11.130		4.554		0.003		0.001		114.889		6.567		0.318		0.007		0.325
S TOT		305.478		210.723		0.076		0.052		96.481		4.481		7.319		0.234		7.553
AFTER		176.347		39.385		0.044		0.010		153.353		8.118		6.716		0.079		6.795
TOTAL		481.824		250.108		0.120		0.062		117.296		5.054		14.035		0.314		14.348

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		0.068		0.054		0.036		0.000		0.000		0.125		0.821		0.821		0.769
12-2013		0.055		0.043		0.040		0.000		0.000		0.000		0.756		1.577		1.427
12-2014		0.040		0.031		0.036		0.000		0.000		0.000		0.536		2.112		1.850
12-2015		0.035		0.027		0.034		0.000		0.000		0.000		0.475		2.588		2.190
12-2016		0.032		0.025		0.034		0.000		0.000		0.000		0.421		3.008		2.465
12-2017		0.029		0.023		0.033		0.000		0.000		0.000		0.383		3.391		2.692
12-2018		0.027		0.021		0.033		0.000		0.000		0.000		0.356		3.748		2.884
12-2019		0.026		0.020		0.033		0.000		0.000		0.000		0.336		4.083		3.048
12-2020		0.024		0.019		0.033		0.000		0.000		0.000		0.319		4.402		3.190
12-2021		0.024		0.018		0.033		0.000		0.000		0.000		0.306		4.708		3.314
12-2022		0.023		0.018		0.033		0.000		0.000		0.000		0.295		5.003		3.423
12-2023		0.022		0.017		0.034		0.000		0.000		0.000		0.284		5.288		3.518
12-2024		0.021		0.017		0.034		0.000		0.000		0.000		0.274		5.562		3.601
12-2025		0.021		0.016		0.034		0.000		0.000		0.000		0.264		5.826		3.674
12-2026		0.020		0.016		0.035		0.000		0.000		0.000		0.254		6.080		3.738
S TOT		0.467		0.366		0.515		0.000		0.000		0.125		6.080		6.080		3.738
AFTER		0.420		0.336		1.591		0.000		0.000		0.000		4.448		10.528		4.173
TOTAL		0.887		0.702		2.106		0.000		0.000		0.125		10.528		10.528		4.173

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		481.824		250.108
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		481.824		250.108
NET RES., MB & MMF		0.120		0.062
NET REVENUE, M$		14.035		0.314
INITIAL PRICE, $		91.830		2.720
INITIAL N.I., PCT.		0.025		0.025

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		5.913
DISCOUNT %	10.00		10.00		4.173
UNDISCOUNTED PAYOUT, YRS.	0.13		12.00		3.759
DISCOUNTED PAYOUT, YRS.	0.14		15.00		3.293
UNDISCOUNTED NET/INVEST.	85.23		18.00		2.947
DISCOUNTED NET/INVEST.	34.92		20.00		2.761
RATE-OF-RETURN, PCT.	100.00		30.00		2.138
INITIAL W.I., PCT.	0.031		60.00		1.362
			80.00		1.124
			100.00		0.966

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 102

Jurasin 32-29 S29-32	DATE	: 03/09/2012
163N 100W 29	TIME	: 12:42:24
THREE FORKS	DBS	: MHA
CRESCENT POINT	SETTINGS	: SETDATA
4PUD	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		69.197		61.265		0.336		0.297		91.830		2.720		30.819		0.808		31.627
12-2013		49.986		42.214		0.242		0.205		88.660		3.350		21.494		0.686		22.180
12-2014		37.414		29.964		0.181		0.145		85.760		3.710		15.562		0.539		16.101
12-2015		31.241		23.738		0.152		0.115		91.180		5.120		13.816		0.589		14.405
12-2016		27.384		19.744		0.133		0.096		93.130		5.240		12.369		0.502		12.870
12-2017		24.678		16.884		0.120		0.082		95.110		5.360		11.383		0.439		11.822
12-2018		22.644		14.702		0.110		0.071		97.140		5.490		10.668		0.391		11.060
12-2019		21.043		12.965		0.102		0.063		99.210		5.610		10.125		0.353		10.478
12-2020		19.740		11.542		0.096		0.056		101.320		5.740		9.700		0.321		10.021
12-2021		18.652		10.350		0.090		0.050		103.470		5.870		9.360		0.295		9.655
12-2022		17.708		9.325		0.086		0.045		105.664		6.004		9.075		0.272		9.346
12-2023		16.822		8.407		0.082		0.041		107.902		6.141		8.804		0.250		9.054
12-2024		15.981		7.579		0.078		0.037		110.185		6.280		8.540		0.231		8.771
12-2025		15.182		6.833		0.074		0.033		112.514		6.422		8.285		0.213		8.498
12-2026		14.423		6.161		0.070		0.030		114.889		6.567		8.037		0.196		8.233
S TOT		402.094		281.671		1.950		1.366		96.421		4.455		188.036		6.085		194.121
AFTER		228.526		54.929		1.108		0.266		153.353		8.155		169.968		2.173		172.141
TOTAL		630.620		336.600		3.059		1.633		117.052		5.058		358.004		8.258		366.262

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		1.956		1.541		0.915		0.000		0.000		39.558		-12.342		-12.342		-13.448
12-2013		1.372		1.075		0.869		0.000		0.000		0.000		18.864		6.522		2.960
12-2014		0.996		0.778		0.772		0.000		0.000		0.000		13.555		20.077		13.665
12-2015		0.891		0.691		0.728		0.000		0.000		0.000		12.095		32.171		22.343
12-2016		0.796		0.618		0.705		0.000		0.000		0.000		10.751		42.922		29.353
12-2017		0.731		0.569		0.691		0.000		0.000		0.000		9.830		52.752		35.180
12-2018		0.684		0.533		0.684		0.000		0.000		0.000		9.158		61.910		40.114
12-2019		0.648		0.506		0.680		0.000		0.000		0.000		8.643		70.554		44.347
12-2020		0.620		0.485		0.679		0.000		0.000		0.000		8.238		78.791		48.014
12-2021		0.597		0.468		0.680		0.000		0.000		0.000		7.910		86.701		51.215
12-2022		0.578		0.454		0.682		0.000		0.000		0.000		7.632		94.333		54.023
12-2023		0.560		0.440		0.686		0.000		0.000		0.000		7.368		101.702		56.488
12-2024		0.542		0.427		0.689		0.000		0.000		0.000		7.113		108.814		58.650
12-2025		0.525		0.414		0.694		0.000		0.000		0.000		6.864		115.679		60.548
12-2026		0.509		0.402		0.698		0.000		0.000		0.000		6.624		122.303		62.212
S TOT		12.007		9.402		10.852		0.000		0.000		39.558		122.303		122.303		62.212
AFTER		10.637		8.498		31.310		0.000		0.000		0.000		121.696		243.998		73.753
TOTAL		22.644		17.900		42.162		0.000		0.000		39.558		243.998		243.998		73.753

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		630.620		336.600
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		630.620		336.600
NET RES., MB & MMF		3.059		1.633
NET REVENUE, M$		358.004		8.258
INITIAL PRICE, $		91.830		2.720
INITIAL N.I., PCT.		0.485		0.485

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		119.462
DISCOUNT %	10.00		10.00		73.753
UNDISCOUNTED PAYOUT, YRS.	1.65		12.00		63.039
DISCOUNTED PAYOUT, YRS.	1.82		15.00		51.023
UNDISCOUNTED NET/INVEST.	7.17		18.00		42.146
DISCOUNTED NET/INVEST.	2.88		20.00		37.399
RATE-OF-RETURN, PCT.	67.03		30.00		21.606
INITIAL W.I., PCT.	0.606		60.00		2.277
			80.00		-3.511
			100.00		-7.280

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 103

Lancaster 2-11H S2-11	DATE	: 03/09/2012
162N 102W 2	TIME	: 12:42:24
BAKKEN	DBS	: MHA
CRESCENT POINT	SETTINGS	: SETDATA
4PUD	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		74.233		65.613		3.700		3.270		91.830		2.720		339.733		8.894		348.627
12-2013		48.405		40.697		2.412		2.028		88.660		3.350		213.884		6.795		220.679
12-2014		36.753		29.305		1.832		1.461		85.760		3.710		157.083		5.419		162.502
12-2015		30.856		23.343		1.538		1.163		91.180		5.120		140.213		5.956		146.170
12-2016		27.123		19.471		1.352		0.970		93.130		5.240		125.890		5.085		130.974
12-2017		24.487		16.680		1.220		0.831		95.110		5.360		116.069		4.456		120.525
12-2018		22.496		14.542		1.121		0.725		97.140		5.490		108.909		3.979		112.888
12-2019		20.924		12.836		1.043		0.640		99.210		5.610		103.457		3.589		107.046
12-2020		19.642		11.435		0.979		0.570		101.320		5.740		99.182		3.271		102.453
12-2021		18.570		10.259		0.925		0.511		103.470		5.870		95.758		3.001		98.759
12-2022		17.632		9.245		0.879		0.461		105.664		6.004		92.852		2.766		95.619
12-2023		16.751		8.335		0.835		0.415		107.902		6.141		90.078		2.551		92.629
12-2024		15.913		7.514		0.793		0.374		110.185		6.280		87.385		2.352		89.737
12-2025		15.117		6.775		0.753		0.338		112.514		6.422		84.770		2.168		86.938
12-2026		14.362		6.108		0.716		0.304		114.889		6.567		82.231		1.999		84.230
S TOT		403.263		282.156		20.098		14.062		96.404		4.429		1937.494		62.280		1999.774
AFTER		227.551		54.456		11.341		2.714		153.353		8.155		1739.110		22.133		1761.243
TOTAL		630.814		336.613		31.438		16.776		116.947		5.032		3676.604		84.413		3761.017

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		21.557		16.987		10.212		0.000		0.000		406.488		-106.616		-106.616		-120.842
12-2013		13.649		10.694		8.797		0.000		0.000		0.000		187.539		80.923		42.252
12-2014		10.052		7.854		7.872		0.000		0.000		0.000		136.724		217.646		150.213
12-2015		9.045		7.011		7.451		0.000		0.000		0.000		122.663		340.309		238.223
12-2016		8.104		6.294		7.221		0.000		0.000		0.000		109.355		449.664		309.532
12-2017		7.457		5.803		7.088		0.000		0.000		0.000		100.176		549.841		368.908
12-2018		6.984		5.445		7.013		0.000		0.000		0.000		93.445		643.286		419.253
12-2019		6.622		5.173		6.977		0.000		0.000		0.000		88.274		731.560		462.484
12-2020		6.337		4.959		6.968		0.000		0.000		0.000		84.188		815.748		499.964
12-2021		6.108		4.788		6.980		0.000		0.000		0.000		80.883		896.631		532.698
12-2022		5.913		4.643		7.005		0.000		0.000		0.000		78.057		974.688		561.415
12-2023		5.728		4.504		7.038		0.000		0.000		0.000		75.359		1050.047		586.619
12-2024		5.549		4.369		7.076		0.000		0.000		0.000		72.742		1122.789		608.737
12-2025		5.375		4.238		7.121		0.000		0.000		0.000		70.203		1192.992		628.142
12-2026		5.208		4.112		7.171		0.000		0.000		0.000		67.740		1260.732		645.164
S TOT		123.688		96.875		111.991		0.000		0.000		406.488		1260.732		1260.732		645.164
AFTER		108.829		86.955		321.649		0.000		0.000		0.000		1243.809		2504.541		763.166
TOTAL		232.517		183.830		433.640		0.000		0.000		406.488		2504.541		2504.541		763.166

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		630.814		336.613
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		630.814		336.613
NET RES., MB & MMF		31.438		16.776
NET REVENUE, M$		3676.604		84.413
INITIAL PRICE, $		91.830		2.720
INITIAL N.I., PCT.		4.984		4.984

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		1231.101
DISCOUNT %	10.00		10.00		763.166
UNDISCOUNTED PAYOUT, YRS.	1.57		12.00		653.349
DISCOUNTED PAYOUT, YRS.	1.74		15.00		530.070
UNDISCOUNTED NET/INVEST.	7.16		18.00		438.860
DISCOUNTED NET/INVEST.	2.88		20.00		390.029
RATE-OF-RETURN, PCT.	67.09		30.00		226.986
INITIAL W.I., PCT.	6.230		60.00		24.593
			80.00		-37.608
			100.00		-78.979

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 104

Montclair 1-12 S1-12	DATE	: 03/09/2012
163N 99W 1	TIME	: 12:42:24
THREE FORKS	DBS	: MHA
SAMSON	SETTINGS	: SETDATA
4PUD	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		54.984		48.529		0.702		0.620		91.830		2.720		64.506		1.686		66.192
12-2013		36.905		30.892		0.471		0.395		88.660		3.350		41.801		1.322		43.123
12-2014		28.131		22.258		0.359		0.284		85.760		3.710		30.821		1.055		31.876
12-2015		23.653		17.697		0.302		0.226		91.180		5.120		27.553		1.158		28.711
12-2016		20.809		14.724		0.266		0.188		93.130		5.240		24.759		0.986		25.744
12-2017		18.796		12.578		0.240		0.161		95.110		5.360		22.839		0.861		23.700
12-2018		17.274		10.933		0.221		0.140		97.140		5.490		21.438		0.767		22.205
12-2019		16.071		9.620		0.205		0.123		99.210		5.610		20.370		0.690		21.059
12-2020		15.089		8.543		0.193		0.109		101.320		5.740		19.532		0.626		20.158
12-2021		14.268		7.640		0.182		0.098		103.470		5.870		18.861		0.573		19.434
12-2022		13.548		6.862		0.173		0.088		105.664		6.004		18.289		0.526		18.816
12-2023		12.871		6.166		0.164		0.079		107.902		6.141		17.743		0.484		18.226
12-2024		12.227		5.541		0.156		0.071		110.185		6.280		17.212		0.445		17.657
12-2025		11.616		4.979		0.148		0.064		112.514		6.422		16.697		0.408		17.106
12-2026		11.035		4.474		0.141		0.057		114.889		6.567		16.197		0.375		16.572
S TOT		307.278		211.436		3.926		2.701		96.447		4.428		378.618		11.962		390.580
AFTER		174.846		38.689		2.234		0.494		153.353		8.118		342.553		4.012		346.566
TOTAL		482.123		250.125		6.159		3.196		117.084		4.999		721.171		15.975		737.146

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		4.093		3.225		2.187		0.000		0.000		6.388		50.299		50.299		47.635
12-2013		2.667		2.090		1.998		0.000		0.000		0.000		36.368		86.667		79.262
12-2014		1.972		1.541		1.825		0.000		0.000		0.000		26.538		113.205		100.218
12-2015		1.777		1.378		1.749		0.000		0.000		0.000		23.807		137.013		117.299
12-2016		1.593		1.238		1.710		0.000		0.000		0.000		21.204		158.216		131.126
12-2017		1.466		1.142		1.690		0.000		0.000		0.000		19.402		177.619		142.626
12-2018		1.374		1.072		1.681		0.000		0.000		0.000		18.078		195.697		152.366
12-2019		1.303		1.018		1.680		0.000		0.000		0.000		17.058		212.755		160.720
12-2020		1.247		0.977		1.685		0.000		0.000		0.000		16.250		229.005		167.955
12-2021		1.202		0.943		1.693		0.000		0.000		0.000		15.596		244.601		174.267
12-2022		1.164		0.914		1.705		0.000		0.000		0.000		15.033		259.634		179.797
12-2023		1.127		0.887		1.717		0.000		0.000		0.000		14.495		274.129		184.645
12-2024		1.092		0.861		1.732		0.000		0.000		0.000		13.973		288.102		188.894
12-2025		1.058		0.835		1.747		0.000		0.000		0.000		13.466		301.568		192.616
12-2026		1.025		0.810		1.764		0.000		0.000		0.000		12.974		314.542		195.876
S TOT		24.157		18.931		26.562		0.000		0.000		6.388		314.542		314.542		195.876
AFTER		21.413		17.128		81.275		0.000		0.000		0.000		226.750		541.292		218.043
TOTAL		45.571		36.059		107.837		0.000		0.000		6.388		541.292		541.292		218.043

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		482.123		250.125
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		482.123		250.125
NET RES., MB & MMF		6.159		3.196
NET REVENUE, M$		721.171		15.975
INITIAL PRICE, $		91.830		2.720
INITIAL N.I., PCT.		1.278		1.278

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		306.451
DISCOUNT %	10.00		10.00		218.043
UNDISCOUNTED PAYOUT, YRS.	0.11		12.00		197.093
DISCOUNTED PAYOUT, YRS.	0.12		15.00		173.492
UNDISCOUNTED NET/INVEST.	85.74		18.00		155.980
DISCOUNTED NET/INVEST.	35.41		20.00		146.590
RATE-OF-RETURN, PCT.	100.00		30.00		115.188
INITIAL W.I., PCT.	1.597		60.00		76.192
			80.00		64.238
			100.00		56.308

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 105

Nomad 6-7 S6-7	DATE	: 03/09/2012
163N 99W 6	TIME	: 12:42:24
THREE FORKS	DBS	: MHA
SAMSON	SETTINGS	: SETDATA
4PUD	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		51.162		45.238		5.850		5.173		91.830		2.720		537.193		14.069		551.262
12-2013		38.085		32.032		4.355		3.663		88.660		3.350		386.084		12.270		398.354
12-2014		28.631		22.760		3.274		2.602		85.760		3.710		280.754		9.655		290.408
12-2015		23.947		18.000		2.738		2.058		91.180		5.120		249.658		10.538		260.196
12-2016		21.008		14.933		2.402		1.707		93.130		5.240		223.703		8.947		232.650
12-2017		18.942		12.735		2.166		1.456		95.110		5.360		205.993		7.805		213.797
12-2018		17.387		11.056		1.988		1.264		97.140		5.490		193.120		6.940		200.060
12-2019		16.162		9.720		1.848		1.111		99.210		5.610		183.337		6.235		189.572
12-2020		15.164		8.626		1.734		0.986		101.320		5.740		175.678		5.661		181.339
12-2021		14.331		7.710		1.639		0.882		103.470		5.870		169.551		5.175		174.726
12-2022		13.606		6.924		1.556		0.792		105.664		6.004		164.387		4.753		169.140
12-2023		12.926		6.221		1.478		0.711		107.902		6.141		159.476		4.368		163.844
12-2024		12.280		5.590		1.404		0.639		110.185		6.280		154.707		4.014		158.721
12-2025		11.666		5.023		1.334		0.574		112.514		6.422		150.078		3.689		153.766
12-2026		11.082		4.514		1.267		0.516		114.889		6.567		145.583		3.389		148.973
S TOT		306.379		211.081		35.032		24.135		96.464		4.454		3379.301		107.507		3486.808
AFTER		175.594		39.036		20.078		4.463		153.353		8.118		3078.946		36.232		3115.177
TOTAL		481.974		250.117		55.109		28.598		117.190		5.026		6458.246		143.739		6601.985

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		34.086		26.860		18.175		0.000		0.000		57.871		414.269		414.269		390.388
12-2013		24.638		19.304		18.339		0.000		0.000		0.000		336.072		750.341		682.698
12-2014		17.964		14.038		16.637		0.000		0.000		0.000		241.770		992.111		873.619
12-2015		16.101		12.483		15.905		0.000		0.000		0.000		215.706		1207.817		1028.393
12-2016		14.395		11.185		15.531		0.000		0.000		0.000		191.539		1399.356		1153.297
12-2017		13.227		10.300		15.338		0.000		0.000		0.000		174.933		1574.289		1256.984
12-2018		12.376		9.656		15.253		0.000		0.000		0.000		162.775		1737.063		1344.682
12-2019		11.726		9.167		15.239		0.000		0.000		0.000		153.440		1890.503		1419.830
12-2020		11.216		8.784		15.277		0.000		0.000		0.000		146.063		2036.566		1484.857
12-2021		10.806		8.478		15.352		0.000		0.000		0.000		140.090		2176.656		1541.552
12-2022		10.460		8.219		15.454		0.000		0.000		0.000		135.007		2311.663		1591.222
12-2023		10.132		7.974		15.570		0.000		0.000		0.000		130.168		2441.831		1634.758
12-2024		9.814		7.735		15.698		0.000		0.000		0.000		125.473		2567.304		1672.909
12-2025		9.507		7.504		15.838		0.000		0.000		0.000		120.917		2688.221		1706.332
12-2026		9.210		7.279		15.990		0.000		0.000		0.000		116.494		2804.715		1735.606
S TOT		215.660		168.965		239.596		0.000		0.000		57.871		2804.715		2804.715		1735.606
AFTER		192.480		153.947		736.475		0.000		0.000		0.000		2032.275		4836.991		1934.494
TOTAL		408.140		322.912		976.071		0.000		0.000		57.871		4836.990		4836.991		1934.494

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		481.974		250.117
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		481.974		250.117
NET RES., MB & MMF		55.109		28.598
NET REVENUE, M$		6458.247		143.739
INITIAL PRICE, $		91.830		2.720
INITIAL N.I., PCT.		11.434		11.434

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		2729.427
DISCOUNT %	10.00		10.00		1934.495
UNDISCOUNTED PAYOUT, YRS.	0.12		12.00		1745.894
DISCOUNTED PAYOUT, YRS.	0.13		15.00		1533.269
UNDISCOUNTED NET/INVEST.	84.58		18.00		1375.382
DISCOUNTED NET/INVEST.	34.96		20.00		1290.671
RATE-OF-RETURN, PCT.	100.00		30.00		1007.067
INITIAL W.I., PCT.	14.468		60.00		654.192
			80.00		545.989
			100.00		474.283

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 106

Olson 15-22 S15-22	DATE	: 03/09/2012
162N 100W 15	TIME	: 12:42:24
THREE FORKS	DBS	: MHA
BAYTEX	SETTINGS	: SETDATA
4PUD	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		83.670		73.708		0.523		0.461		91.830		2.720		48.021		1.253		49.274
12-2013		45.663		38.052		0.285		0.238		88.660		3.350		25.303		0.797		26.100
12-2014		35.531		28.083		0.222		0.176		85.760		3.710		19.044		0.651		19.696
12-2015		30.125		22.592		0.188		0.141		91.180		5.120		17.168		0.723		17.891
12-2016		26.624		18.946		0.166		0.118		93.130		5.240		15.497		0.620		16.117
12-2017		24.118		16.286		0.151		0.102		95.110		5.360		14.337		0.546		14.882
12-2018		22.209		14.232		0.139		0.089		97.140		5.490		13.484		0.488		13.972
12-2019		20.693		12.584		0.129		0.079		99.210		5.610		12.831		0.441		13.272
12-2020		19.450		11.225		0.122		0.070		101.320		5.740		12.317		0.403		12.719
12-2021		18.407		10.081		0.115		0.063		103.470		5.870		11.904		0.370		12.273
12-2022		17.482		9.086		0.109		0.057		105.664		6.004		11.545		0.341		11.886
12-2023		16.608		8.192		0.104		0.051		107.902		6.141		11.200		0.314		11.515
12-2024		15.778		7.386		0.099		0.046		110.185		6.280		10.865		0.290		11.155
12-2025		14.989		6.659		0.094		0.042		112.514		6.422		10.540		0.267		10.808
12-2026		14.239		6.003		0.089		0.038		114.889		6.567		10.225		0.246		10.471
S TOT		405.586		283.114		2.535		1.769		96.367		4.380		244.281		7.751		252.032
AFTER		225.614		53.524		1.410		0.335		153.353		8.155		216.241		2.728		218.969
TOTAL		631.200		336.638		3.945		2.104		116.735		4.981		460.521		10.479		471.000

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		3.047		2.401		1.478		0.000		0.000		0.000		42.349		42.349		40.742
12-2013		1.614		1.265		1.073		0.000		0.000		0.000		22.147		64.496		59.996
12-2014		1.218		0.952		0.974		0.000		0.000		0.000		16.551		81.047		73.064
12-2015		1.107		0.858		0.926		0.000		0.000		0.000		14.999		96.046		83.825
12-2016		0.997		0.775		0.900		0.000		0.000		0.000		13.445		109.491		92.592
12-2017		0.921		0.717		0.885		0.000		0.000		0.000		12.360		121.851		99.918
12-2018		0.864		0.674		0.876		0.000		0.000		0.000		11.557		133.408		106.144
12-2019		0.821		0.642		0.872		0.000		0.000		0.000		10.937		144.345		111.501
12-2020		0.787		0.616		0.872		0.000		0.000		0.000		10.445		154.790		116.151
12-2021		0.759		0.595		0.874		0.000		0.000		0.000		10.046		164.836		120.216
12-2022		0.735		0.577		0.877		0.000		0.000		0.000		9.697		174.533		123.784
12-2023		0.712		0.560		0.881		0.000		0.000		0.000		9.362		183.894		126.915
12-2024		0.690		0.543		0.886		0.000		0.000		0.000		9.036		192.931		129.662
12-2025		0.668		0.527		0.892		0.000		0.000		0.000		8.721		201.651		132.073
12-2026		0.647		0.511		0.898		0.000		0.000		0.000		8.414		210.066		134.187
S TOT		15.588		12.214		14.164		0.000		0.000		0.000		210.066		210.066		134.187
AFTER		13.530		10.812		40.316		0.000		0.000		0.000		154.310		364.376		148.838
TOTAL		29.118		23.026		54.480		0.000		0.000		0.000		364.376		364.376		148.838

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		631.200		336.638
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		631.200		336.638
NET RES., MB & MMF		3.945		2.104
NET REVENUE, M$		460.521		10.479
INITIAL PRICE, $		91.830		2.720
INITIAL N.I., PCT.		0.625		0.625

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		206.670
DISCOUNT %	10.00		10.00		148.838
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		135.296
DISCOUNTED PAYOUT, YRS.	0.00		15.00		120.119
UNDISCOUNTED NET/INVEST.	0.00		18.00		108.913
DISCOUNTED NET/INVEST.	0.00		20.00		102.924
RATE-OF-RETURN, PCT.	100.00		30.00		83.003
INITIAL W.I., PCT.	0.781		60.00		58.526
			80.00		51.088
			100.00		46.169

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 107

Reistad 1-1 S1 E/2	DATE	: 03/09/2012
162N 102W 1	TIME	: 12:42:24
THREE FORKS	DBS	: MHA
MUREX PETROLEUM	SETTINGS	: SETDATA
4PUD	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		83.670		73.708		5.772		5.085		91.830		2.720		530.020		13.830		543.850
12-2013		45.663		38.052		3.150		2.625		88.660		3.350		279.275		8.793		288.069
12-2014		35.531		28.083		2.451		1.937		85.760		3.710		210.198		7.187		217.385
12-2015		30.125		22.592		2.078		1.558		91.180		5.120		189.483		7.979		197.462
12-2016		26.624		18.946		1.837		1.307		93.130		5.240		171.044		6.848		177.892
12-2017		24.118		16.286		1.664		1.123		95.110		5.360		158.238		6.022		164.259
12-2018		22.209		14.232		1.532		0.982		97.140		5.490		148.825		5.390		154.215
12-2019		20.693		12.584		1.427		0.868		99.210		5.610		141.617		4.870		146.487
12-2020		19.450		11.225		1.342		0.774		101.320		5.740		135.943		4.445		140.388
12-2021		18.407		10.081		1.270		0.695		103.470		5.870		131.382		4.082		135.464
12-2022		17.482		9.086		1.206		0.627		105.664		6.004		127.428		3.763		131.191
12-2023		16.608		8.192		1.146		0.565		107.902		6.141		123.620		3.470		127.090
12-2024		15.778		7.386		1.088		0.509		110.185		6.280		119.924		3.200		123.124
12-2025		14.989		6.659		1.034		0.459		112.514		6.422		116.335		2.950		119.285
12-2026		14.239		6.003		0.982		0.414		114.889		6.567		112.852		2.720		115.571
S TOT		405.586		283.114		27.978		19.530		96.366		4.380		2696.184		85.549		2781.733
AFTER		225.614		53.524		15.563		3.692		153.353		8.155		2386.699		30.110		2416.810
TOTAL		631.200		336.638		43.542		23.222		116.735		4.981		5082.883		115.659		5198.544

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		33.628		26.501		16.309		0.000		0.000		0.000		467.413		467.413		449.678
12-2013		17.817		13.964		11.845		0.000		0.000		0.000		244.443		711.856		662.191
12-2014		13.447		10.510		10.749		0.000		0.000		0.000		182.680		894.535		806.425
12-2015		12.219		9.474		10.225		0.000		0.000		0.000		165.544		1060.079		925.195
12-2016		11.007		8.552		9.934		0.000		0.000		0.000		148.399		1208.478		1021.961
12-2017		10.163		7.912		9.766		0.000		0.000		0.000		136.419		1344.897		1102.816
12-2018		9.540		7.441		9.673		0.000		0.000		0.000		127.560		1472.457		1171.540
12-2019		9.061		7.081		9.630		0.000		0.000		0.000		120.715		1593.172		1230.659
12-2020		8.683		6.797		9.622		0.000		0.000		0.000		115.285		1708.457		1281.983
12-2021		8.378		6.569		9.642		0.000		0.000		0.000		110.875		1819.332		1326.853
12-2022		8.113		6.371		9.679		0.000		0.000		0.000		107.028		1926.360		1366.229
12-2023		7.859		6.181		9.724		0.000		0.000		0.000		103.326		2029.686		1400.787
12-2024		7.613		5.996		9.778		0.000		0.000		0.000		99.736		2129.422		1431.112
12-2025		7.375		5.817		9.841		0.000		0.000		0.000		96.252		2225.674		1457.718
12-2026		7.145		5.643		9.911		0.000		0.000		0.000		92.872		2318.546		1481.055
S TOT		172.050		134.809		156.328		0.000		0.000		0.000		2318.546		2318.546		1481.055
AFTER		149.336		119.335		444.977		0.000		0.000		0.000		1703.162		4021.707		1642.761
TOTAL		321.386		254.144		601.305		0.000		0.000		0.000		4021.708		4021.707		1642.761

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		631.200		336.638
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		631.200		336.638
NET RES., MB & MMF		43.542		23.222
NET REVENUE, M$		5082.884		115.659
INITIAL PRICE, $		91.830		2.720
INITIAL N.I., PCT.		6.898		6.898

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		2281.069
DISCOUNT %	10.00		10.00		1642.761
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		1493.293
DISCOUNTED PAYOUT, YRS.	0.00		15.00		1325.778
UNDISCOUNTED NET/INVEST.	0.00		18.00		1202.098
DISCOUNTED NET/INVEST.	0.00		20.00		1136.000
RATE-OF-RETURN, PCT.	100.00		30.00		916.129
INITIAL W.I., PCT.	8.623		60.00		645.964
			80.00		563.869
			100.00		509.574

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 108

Ridgeway 25-36H S25-36	DATE	: 03/09/2012
163N 101W 25	TIME	: 12:42:24
THREE FORKS	DBS	: MHA
CRESCENT POINT	SETTINGS	: SETDATA
4PUD	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		69.197		61.265		1.038		0.919		91.830		2.720		95.316		2.500		97.815
12-2013		49.986		42.214		0.750		0.633		88.660		3.350		66.476		2.121		68.597
12-2014		37.414		29.964		0.561		0.449		85.760		3.710		48.129		1.667		49.796
12-2015		31.241		23.738		0.469		0.356		91.180		5.120		42.729		1.823		44.552
12-2016		27.384		19.744		0.411		0.296		93.130		5.240		38.254		1.552		39.805
12-2017		24.678		16.884		0.370		0.253		95.110		5.360		35.206		1.357		36.564
12-2018		22.644		14.702		0.340		0.221		97.140		5.490		32.994		1.211		34.205
12-2019		21.043		12.965		0.316		0.194		99.210		5.610		31.315		1.091		32.406
12-2020		19.740		11.542		0.296		0.173		101.320		5.740		30.000		0.994		30.994
12-2021		18.652		10.350		0.280		0.155		103.470		5.870		28.949		0.911		29.861
12-2022		17.708		9.325		0.266		0.140		105.664		6.004		28.066		0.840		28.906
12-2023		16.822		8.407		0.252		0.126		107.902		6.141		27.228		0.774		28.002
12-2024		15.981		7.579		0.240		0.114		110.185		6.280		26.413		0.714		27.127
12-2025		15.182		6.833		0.228		0.103		112.514		6.422		25.623		0.658		26.281
12-2026		14.423		6.161		0.216		0.092		114.889		6.567		24.856		0.607		25.463
S TOT		402.094		281.671		6.031		4.225		96.421		4.455		581.554		18.821		600.375
AFTER		228.526		54.929		3.428		0.824		153.353		8.155		525.675		6.719		532.394
TOTAL		630.620		336.600		9.459		5.049		117.052		5.058		1107.229		25.540		1132.769

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		6.048		4.766		2.829		0.000		0.000		122.344		-38.172		-38.172		-41.591
12-2013		4.243		3.324		2.689		0.000		0.000		0.000		58.341		20.170		9.156
12-2014		3.080		2.406		2.387		0.000		0.000		0.000		41.923		62.093		42.262
12-2015		2.757		2.136		2.253		0.000		0.000		0.000		37.406		99.499		69.101
12-2016		2.463		1.913		2.180		0.000		0.000		0.000		33.250		132.748		90.783
12-2017		2.262		1.760		2.138		0.000		0.000		0.000		30.403		163.151		108.803
12-2018		2.116		1.650		2.115		0.000		0.000		0.000		28.324		191.476		124.064
12-2019		2.005		1.566		2.103		0.000		0.000		0.000		26.732		218.208		137.156
12-2020		1.917		1.500		2.100		0.000		0.000		0.000		25.477		243.685		148.498
12-2021		1.847		1.447		2.103		0.000		0.000		0.000		24.463		268.148		158.398
12-2022		1.788		1.403		2.110		0.000		0.000		0.000		23.605		291.753		167.082
12-2023		1.732		1.361		2.120		0.000		0.000		0.000		22.789		314.542		174.704
12-2024		1.677		1.321		2.132		0.000		0.000		0.000		21.998		336.539		181.393
12-2025		1.625		1.281		2.145		0.000		0.000		0.000		21.230		357.770		187.261
12-2026		1.574		1.243		2.160		0.000		0.000		0.000		20.486		378.255		192.409
S TOT		37.134		29.078		33.564		0.000		0.000		122.344		378.255		378.255		192.409
AFTER		32.897		26.284		96.835		0.000		0.000		0.000		376.379		754.634		228.103
TOTAL		70.032		55.361		130.398		0.000		0.000		122.344		754.634		754.634		228.103

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		630.620		336.600
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		630.620		336.600
NET RES., MB & MMF		9.459		5.049
NET REVENUE, M$		1107.229		25.540
INITIAL PRICE, $		91.830		2.720
INITIAL N.I., PCT.		1.500		1.500

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		369.470
DISCOUNT %	10.00		10.00		228.103
UNDISCOUNTED PAYOUT, YRS.	1.65		12.00		194.966
DISCOUNTED PAYOUT, YRS.	1.82		15.00		157.804
UNDISCOUNTED NET/INVEST.	7.17		18.00		130.348
DISCOUNTED NET/INVEST.	2.88		20.00		115.668
RATE-OF-RETURN, PCT.	67.03		30.00		66.821
INITIAL W.I., PCT.	1.875		60.00		7.043
			80.00		-10.858
			100.00		-22.515

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 109

Titan 36-25 S36-25	DATE	: 03/09/2012
163N 99W 36	TIME	: 12:42:24
THREE FORKS	DBS	: MHA
SAMSON	SETTINGS	: SETDATA
4PUD	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		58.642		51.666		0.379		0.334		91.830		2.720		34.771		0.907		35.678
12-2013		35.832		29.853		0.231		0.193		88.660		3.350		20.512		0.646		21.158
12-2014		27.656		21.780		0.179		0.141		85.760		3.710		15.314		0.522		15.836
12-2015		23.370		17.404		0.151		0.112		91.180		5.120		13.759		0.575		14.334
12-2016		20.616		14.519		0.133		0.094		93.130		5.240		12.397		0.491		12.888
12-2017		18.654		12.425		0.120		0.080		95.110		5.360		11.455		0.430		11.886
12-2018		17.164		10.813		0.111		0.070		97.140		5.490		10.765		0.383		11.149
12-2019		15.982		9.523		0.103		0.061		99.210		5.610		10.238		0.345		10.583
12-2020		15.015		8.462		0.097		0.055		101.320		5.740		9.823		0.314		10.137
12-2021		14.205		7.572		0.092		0.049		103.470		5.870		9.490		0.287		9.777
12-2022		13.490		6.801		0.087		0.044		105.664		6.004		9.204		0.264		9.468
12-2023		12.816		6.111		0.083		0.039		107.902		6.141		8.929		0.242		9.171
12-2024		12.175		5.491		0.079		0.035		110.185		6.280		8.662		0.223		8.885
12-2025		11.566		4.934		0.075		0.032		112.514		6.422		8.403		0.205		8.607
12-2026		10.988		4.434		0.071		0.029		114.889		6.567		8.151		0.188		8.339
S TOT		308.172		211.787		1.990		1.367		96.428		4.403		191.875		6.022		197.897
AFTER		174.100		38.346		1.124		0.248		153.353		8.118		172.390		2.010		174.400
TOTAL		482.272		250.133		3.114		1.615		116.978		4.973		364.265		8.031		372.297

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		2.206		1.739		1.195		0.000		0.000		3.228		27.310		27.310		25.991
12-2013		1.309		1.026		0.998		0.000		0.000		0.000		17.826		45.136		41.491
12-2014		0.980		0.766		0.917		0.000		0.000		0.000		13.174		58.310		51.892
12-2015		0.887		0.688		0.881		0.000		0.000		0.000		11.879		70.189		60.415
12-2016		0.797		0.620		0.862		0.000		0.000		0.000		10.609		80.798		67.333
12-2017		0.735		0.573		0.852		0.000		0.000		0.000		9.725		90.523		73.097
12-2018		0.690		0.538		0.848		0.000		0.000		0.000		9.072		99.595		77.985
12-2019		0.655		0.512		0.848		0.000		0.000		0.000		8.568		108.163		82.181
12-2020		0.627		0.491		0.851		0.000		0.000		0.000		8.168		116.331		85.818
12-2021		0.605		0.475		0.855		0.000		0.000		0.000		7.843		124.174		88.992
12-2022		0.585		0.460		0.861		0.000		0.000		0.000		7.561		131.736		91.774
12-2023		0.567		0.446		0.867		0.000		0.000		0.000		7.290		139.026		94.212
12-2024		0.549		0.433		0.875		0.000		0.000		0.000		7.028		146.054		96.349
12-2025		0.532		0.420		0.882		0.000		0.000		0.000		6.773		152.826		98.221
12-2026		0.516		0.408		0.891		0.000		0.000		0.000		6.525		159.352		99.861
S TOT		12.240		9.594		13.483		0.000		0.000		3.228		159.352		159.352		99.861
AFTER		10.776		8.619		41.068		0.000		0.000		0.000		113.936		273.288		111.005
TOTAL		23.015		18.213		54.552		0.000		0.000		3.228		273.288		273.288		111.005

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		482.272		250.133
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		482.272		250.133
NET RES., MB & MMF		3.114		1.615
NET REVENUE, M$		364.265		8.031
INITIAL PRICE, $		91.830		2.720
INITIAL N.I., PCT.		0.646		0.646

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		155.369
DISCOUNT %	10.00		10.00		111.005
UNDISCOUNTED PAYOUT, YRS.	0.11		12.00		100.501
DISCOUNTED PAYOUT, YRS.	0.11		15.00		88.673
UNDISCOUNTED NET/INVEST.	85.65		18.00		79.904
DISCOUNTED NET/INVEST.	35.38		20.00		75.205
RATE-OF-RETURN, PCT.	100.00		30.00		59.509
INITIAL W.I., PCT.	0.807		60.00		40.070
			80.00		34.123
			100.00		30.177

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 110

UNNAMED 1-12 1-12	DATE	: 03/09/2012
163N 100W 1	TIME	: 12:42:24
THREE FORKS	DBS	: MHA
SM ENERGY	SETTINGS	: SETDATA
4PUD	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		63.907		56.677		5.750		5.099		91.830		2.720		527.998		13.870		541.868
12-2013		51.741		43.892		4.655		3.949		88.660		3.350		412.723		13.229		425.952
12-2014		38.112		30.658		3.429		2.758		85.760		3.710		294.067		10.233		304.300
12-2015		31.642		24.148		2.847		2.173		91.180		5.120		259.573		11.124		270.697
12-2016		27.652		20.024		2.488		1.802		93.130		5.240		231.690		9.440		241.130
12-2017		24.873		17.092		2.238		1.538		95.110		5.360		212.839		8.242		221.081
12-2018		22.794		14.864		2.051		1.337		97.140		5.490		199.214		7.342		206.556
12-2019		21.163		13.096		1.904		1.178		99.210		5.610		188.901		6.610		195.511
12-2020		19.839		11.651		1.785		1.048		101.320		5.740		180.848		6.017		186.865
12-2021		18.736		10.442		1.686		0.939		103.470		5.870		174.419		5.515		179.933
12-2022		17.784		9.406		1.600		0.846		105.664		6.004		169.061		5.081		174.142
12-2023		16.894		8.480		1.520		0.763		107.902		6.141		164.010		4.685		168.695
12-2024		16.050		7.645		1.444		0.688		110.185		6.280		159.106		4.320		163.426
12-2025		15.247		6.893		1.372		0.620		112.514		6.422		154.345		3.983		158.328
12-2026		14.485		6.214		1.303		0.559		114.889		6.567		149.723		3.672		153.395
S TOT		400.920		281.182		36.071		25.298		96.436		4.481		3478.518		113.361		3591.878
AFTER		229.505		55.405		20.648		4.985		153.353		8.155		3166.494		40.651		3207.145
TOTAL		630.425		336.587		56.719		30.283		117.156		5.086		6645.011		154.012		6799.023

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		33.505		26.400		15.594		0.000		0.000		740.176		-273.808		-273.808		-288.608
12-2013		26.346		20.636		16.548		0.000		0.000		0.000		362.422		88.615		26.703
12-2014		18.824		14.703		14.550		0.000		0.000		0.000		256.223		344.838		229.050
12-2015		16.752		12.979		13.692		0.000		0.000		0.000		227.274		572.112		392.128
12-2016		14.920		11.584		13.232		0.000		0.000		0.000		201.393		773.505		523.459
12-2017		13.679		10.642		12.968		0.000		0.000		0.000		183.793		957.298		632.398
12-2018		12.779		9.961		12.818		0.000		0.000		0.000		170.999		1128.297		724.527
12-2019		12.094		9.445		12.743		0.000		0.000		0.000		161.229		1289.526		803.489
12-2020		11.558		9.042		12.720		0.000		0.000		0.000		153.544		1443.070		871.846
12-2021		11.129		8.721		12.736		0.000		0.000		0.000		147.347		1590.417		931.478
12-2022		10.770		8.453		12.780		0.000		0.000		0.000		142.139		1732.556		983.771
12-2023		10.432		8.201		12.838		0.000		0.000		0.000		137.224		1869.780		1029.667
12-2024		10.106		7.955		12.907		0.000		0.000		0.000		132.458		2002.237		1069.941
12-2025		9.790		7.717		12.987		0.000		0.000		0.000		127.834		2130.071		1105.276
12-2026		9.484		7.486		13.077		0.000		0.000		0.000		123.347		2253.418		1136.271
S TOT		222.167		173.926		202.192		0.000		0.000		740.176		2253.418		2253.418		1136.271
AFTER		198.173		158.325		586.003		0.000		0.000		0.000		2264.644		4518.061		1351.130
TOTAL		420.340		332.250		788.195		0.000		0.000		740.176		4518.062		4518.061		1351.130

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		630.425		336.587
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		630.425		336.587
NET RES., MB & MMF		56.719		30.283
NET REVENUE, M$		6645.012		154.012
INITIAL PRICE, $		91.830		2.720
INITIAL N.I., PCT.		8.997		8.997

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		2201.055
DISCOUNT %	10.00		10.00		1351.130
UNDISCOUNTED PAYOUT, YRS.	1.76		12.00		1152.103
DISCOUNTED PAYOUT, YRS.	1.92		15.00		929.108
UNDISCOUNTED NET/INVEST.	7.10		18.00		764.577
DISCOUNTED NET/INVEST.	2.85		20.00		676.727
RATE-OF-RETURN, PCT.	65.90		30.00		385.417
INITIAL W.I., PCT.	11.344		60.00		33.994
			80.00		-68.502
			100.00		-133.815

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 111

Willoch 1-16H S16-21	DATE	: 03/09/2012
160N 97W 16	TIME	: 12:42:24
THREE FORKS	DBS	: MHA
CONTINENTAL	SETTINGS	: SETDATA
4PUD	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		62.157		54.665		1.247		1.097		91.830		2.720		114.533		2.984		117.516
12-2013		34.850		28.898		0.699		0.580		88.660		3.350		61.999		1.943		63.941
12-2014		27.205		21.325		0.546		0.428		85.760		3.710		46.815		1.587		48.402
12-2015		23.097		17.121		0.463		0.344		91.180		5.120		42.258		1.759		44.017
12-2016		20.428		14.320		0.410		0.287		93.130		5.240		38.175		1.506		39.681
12-2017		18.514		12.275		0.372		0.246		95.110		5.360		35.334		1.320		36.654
12-2018		17.055		10.694		0.342		0.215		97.140		5.490		33.243		1.178		34.421
12-2019		15.894		9.426		0.319		0.189		99.210		5.610		31.641		1.061		32.702
12-2020		14.943		8.382		0.300		0.168		101.320		5.740		30.379		0.965		31.344
12-2021		14.143		7.504		0.284		0.151		103.470		5.870		29.364		0.884		30.248
12-2022		13.433		6.741		0.270		0.135		105.664		6.004		28.481		0.812		29.293
12-2023		12.761		6.057		0.256		0.122		107.902		6.141		27.630		0.746		28.376
12-2024		12.123		5.443		0.243		0.109		110.185		6.280		26.804		0.686		27.490
12-2025		11.517		4.891		0.231		0.098		112.514		6.422		26.002		0.630		26.632
12-2026		10.941		4.395		0.220		0.088		114.889		6.567		25.223		0.579		25.802
S TOT		309.062		212.136		6.202		4.257		96.408		4.379		597.878		18.640		616.518
AFTER		173.357		38.006		3.479		0.763		153.353		8.118		533.440		6.191		539.631
TOTAL		482.420		250.142		9.680		5.019		116.871		4.947		1131.318		24.831		1156.149

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		7.266		5.727		3.989		0.000		0.000		0.000		100.535		100.535		96.668
12-2013		3.955		3.100		3.066		0.000		0.000		0.000		53.821		154.356		143.458
12-2014		2.994		2.341		2.834		0.000		0.000		0.000		40.233		194.589		175.224
12-2015		2.724		2.113		2.727		0.000		0.000		0.000		36.453		231.042		201.377
12-2016		2.455		1.909		2.672		0.000		0.000		0.000		32.645		263.686		222.664
12-2017		2.268		1.767		2.644		0.000		0.000		0.000		29.976		293.662		240.431
12-2018		2.129		1.662		2.633		0.000		0.000		0.000		27.997		321.659		255.514
12-2019		2.023		1.582		2.633		0.000		0.000		0.000		26.465		348.123		268.475
12-2020		1.939		1.519		2.641		0.000		0.000		0.000		25.246		373.369		279.714
12-2021		1.871		1.468		2.655		0.000		0.000		0.000		24.254		397.623		289.530
12-2022		1.811		1.424		2.673		0.000		0.000		0.000		23.384		421.008		298.133
12-2023		1.755		1.381		2.694		0.000		0.000		0.000		22.546		443.554		305.674
12-2024		1.700		1.340		2.716		0.000		0.000		0.000		21.734		465.288		312.282
12-2025		1.647		1.300		2.741		0.000		0.000		0.000		20.945		486.232		318.072
12-2026		1.595		1.261		2.767		0.000		0.000		0.000		20.179		506.411		323.142
S TOT		38.131		29.894		42.083		0.000		0.000		0.000		506.411		506.411		323.142
AFTER		33.342		26.672		127.600		0.000		0.000		0.000		352.017		858.428		357.594
TOTAL		71.473		56.566		169.682		0.000		0.000		0.000		858.428		858.428		357.594

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		482.420		250.142
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		482.420		250.142
NET RES., MB & MMF		9.680		5.019
NET REVENUE, M$		1131.318		24.831
INITIAL PRICE, $		91.830		2.720
INITIAL N.I., PCT.		2.007		2.007

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		494.422
DISCOUNT %	10.00		10.00		357.594
UNDISCOUNTED PAYOUT, YRS.	0.00		12.00		325.231
DISCOUNTED PAYOUT, YRS.	0.00		15.00		288.822
UNDISCOUNTED NET/INVEST.	0.00		18.00		261.856
DISCOUNTED NET/INVEST.	0.00		20.00		247.419
RATE-OF-RETURN, PCT.	100.00		30.00		199.287
INITIAL W.I., PCT.	2.508		60.00		140.002
			80.00		121.979
			100.00		110.063

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 112

Wolter 15-8H S5-8	DATE	: 03/09/2012
163N 100W 5	TIME	: 12:42:24
THREE FORKS	DBS	: MHA
SM ENERGY	SETTINGS	: SETDATA
4PUD	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		79.048		69.753		0.957		0.844		91.830		2.720		87.885		2.297		90.182
12-2013		46.972		39.317		0.569		0.476		88.660		3.350		50.420		1.595		52.015
12-2014		36.126		28.680		0.437		0.347		85.760		3.710		37.509		1.288		38.798
12-2015		30.484		22.961		0.369		0.278		91.180		5.120		33.652		1.423		35.075
12-2016		26.870		19.205		0.325		0.233		93.130		5.240		30.297		1.218		31.515
12-2017		24.300		16.481		0.294		0.200		95.110		5.360		27.982		1.070		29.051
12-2018		22.351		14.386		0.271		0.174		97.140		5.490		26.287		0.956		27.243
12-2019		20.807		12.709		0.252		0.154		99.210		5.610		24.993		0.863		25.856
12-2020		19.545		11.329		0.237		0.137		101.320		5.740		23.976		0.787		24.763
12-2021		18.488		10.169		0.224		0.123		103.470		5.870		23.160		0.723		23.883
12-2022		17.557		9.165		0.213		0.111		105.664		6.004		22.460		0.666		23.127
12-2023		16.679		8.263		0.202		0.100		107.902		6.141		21.789		0.614		22.404
12-2024		15.845		7.450		0.192		0.090		110.185		6.280		21.138		0.566		21.704
12-2025		15.053		6.716		0.182		0.081		112.514		6.422		20.505		0.522		21.027
12-2026		14.300		6.055		0.173		0.073		114.889		6.567		19.891		0.481		20.373
S TOT		404.427		282.637		4.896		3.422		96.386		4.404		471.943		15.071		487.014
AFTER		226.580		53.988		2.743		0.654		153.353		8.155		420.679		5.330		426.009
TOTAL		631.007		336.626		7.640		4.076		116.841		5.006		892.622		20.401		913.023

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		5.576		4.394		2.725		0.000		0.000		27.761		49.725		49.725		46.416
12-2013		3.217		2.521		2.147		0.000		0.000		0.000		44.130		93.855		84.787
12-2014		2.400		1.875		1.935		0.000		0.000		0.000		32.587		126.442		110.517
12-2015		2.170		1.683		1.837		0.000		0.000		0.000		29.385		155.827		131.600
12-2016		1.950		1.515		1.782		0.000		0.000		0.000		26.268		182.095		148.729
12-2017		1.797		1.399		1.751		0.000		0.000		0.000		24.104		206.199		163.016
12-2018		1.685		1.314		1.733		0.000		0.000		0.000		22.510		228.709		175.143
12-2019		1.599		1.250		1.725		0.000		0.000		0.000		21.282		249.991		185.566
12-2020		1.532		1.199		1.723		0.000		0.000		0.000		20.310		270.301		194.607
12-2021		1.477		1.158		1.726		0.000		0.000		0.000		19.521		289.822		202.508
12-2022		1.430		1.123		1.733		0.000		0.000		0.000		18.841		308.663		209.439
12-2023		1.385		1.089		1.741		0.000		0.000		0.000		18.188		326.851		215.522
12-2024		1.342		1.057		1.750		0.000		0.000		0.000		17.555		344.405		220.860
12-2025		1.300		1.025		1.762		0.000		0.000		0.000		16.941		361.346		225.542
12-2026		1.260		0.995		1.774		0.000		0.000		0.000		16.345		377.690		229.650
S TOT		30.122		23.597		27.843		0.000		0.000		27.761		377.690		377.690		229.650
AFTER		26.323		21.034		79.610		0.000		0.000		0.000		299.042		676.732		258.082
TOTAL		56.446		44.631		107.454		0.000		0.000		27.761		676.732		676.732		258.082

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		631.007		336.625
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		631.007		336.625
NET RES., MB & MMF		7.640		4.076
NET REVENUE, M$		892.622		20.401
INITIAL PRICE, $		91.830		2.720
INITIAL N.I., PCT.		1.211		1.211

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		370.621
DISCOUNT %	10.00		10.00		258.082
UNDISCOUNTED PAYOUT, YRS.	0.36		12.00		231.682
DISCOUNTED PAYOUT, YRS.	0.37		15.00		202.062
UNDISCOUNTED NET/INVEST.	25.38		18.00		180.164
DISCOUNTED NET/INVEST.	10.30		20.00		168.449
RATE-OF-RETURN, PCT.	100.00		30.00		129.392
INITIAL W.I., PCT.	1.542		60.00		81.113
			80.00		66.339
			100.00		56.531

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 113

Yukon 12-1 S1-12	DATE	: 03/09/2012
163N 98W 1	TIME	: 12:42:24
THREE FORKS	DBS	: MHA
SAMSON	SETTINGS	: SETDATA
4PUD	SCENARIO	: MHA12SPROULE

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		58.321		51.811		0.583		0.518		91.830		2.720		53.556		1.409		54.966
12-2013		53.709		45.767		0.537		0.458		88.660		3.350		47.618		1.533		49.151
12-2014		38.852		31.391		0.389		0.314		85.760		3.710		33.320		1.165		34.484
12-2015		32.059		24.574		0.321		0.246		91.180		5.120		29.231		1.258		30.489
12-2016		27.928		20.313		0.279		0.203		93.130		5.240		26.009		1.064		27.073
12-2017		25.073		17.305		0.251		0.173		95.110		5.360		23.847		0.928		24.775
12-2018		22.948		15.030		0.229		0.150		97.140		5.490		22.292		0.825		23.117
12-2019		21.286		13.230		0.213		0.132		99.210		5.610		21.118		0.742		21.860
12-2020		19.940		11.761		0.199		0.118		101.320		5.740		20.203		0.675		20.878
12-2021		18.821		10.535		0.188		0.105		103.470		5.870		19.474		0.618		20.093
12-2022		17.860		9.487		0.179		0.095		105.664		6.004		18.871		0.570		19.441
12-2023		16.967		8.553		0.170		0.086		107.902		6.141		18.308		0.525		18.833
12-2024		16.118		7.711		0.161		0.077		110.185		6.280		17.760		0.484		18.244
12-2025		15.313		6.952		0.153		0.070		112.514		6.422		17.229		0.447		17.675
12-2026		14.547		6.268		0.145		0.063		114.889		6.567		16.713		0.412		17.124
S TOT		399.742		280.688		3.997		2.807		96.450		4.509		385.549		12.655		398.204
AFTER		230.488		55.885		2.305		0.559		153.353		8.155		353.459		4.557		358.017
TOTAL		630.229		336.574		6.302		3.366		117.260		5.114		739.008		17.213		756.221

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		3.399		2.678		1.546		0.000		0.000		5.000		42.343		42.343		39.597
12-2013		3.040		2.381		1.858		0.000		0.000		0.000		41.872		84.216		76.035
12-2014		2.133		1.666		1.616		0.000		0.000		0.000		29.069		113.285		98.993
12-2015		1.887		1.462		1.516		0.000		0.000		0.000		25.625		138.910		117.381
12-2016		1.675		1.300		1.463		0.000		0.000		0.000		22.635		161.544		132.141
12-2017		1.533		1.192		1.432		0.000		0.000		0.000		20.617		182.161		144.362
12-2018		1.430		1.115		1.415		0.000		0.000		0.000		19.157		201.318		154.683
12-2019		1.352		1.056		1.406		0.000		0.000		0.000		18.046		219.364		163.521
12-2020		1.291		1.010		1.403		0.000		0.000		0.000		17.173		236.537		171.167
12-2021		1.243		0.974		1.405		0.000		0.000		0.000		16.471		253.008		177.833
12-2022		1.202		0.944		1.410		0.000		0.000		0.000		15.885		268.894		183.677
12-2023		1.165		0.915		1.416		0.000		0.000		0.000		15.337		284.231		188.806
12-2024		1.128		0.888		1.423		0.000		0.000		0.000		14.805		299.036		193.308
12-2025		1.093		0.861		1.432		0.000		0.000		0.000		14.289		313.324		197.257
12-2026		1.059		0.836		1.442		0.000		0.000		0.000		13.788		327.112		200.722
S TOT		24.630		19.277		22.185		0.000		0.000		5.000		327.112		327.112		200.722
AFTER		22.122		17.673		64.591		0.000		0.000		0.000		253.630		580.742		224.757
TOTAL		46.753		36.950		86.775		0.000		0.000		5.000		580.742		580.742		224.757

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		630.229		336.574
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		630.229		336.574
NET RES., MB & MMF		6.302		3.366
NET REVENUE, M$		739.008		17.213
INITIAL PRICE, $		91.830		2.720
INITIAL N.I., PCT.		1.000		1.000

		P.W. %		P.W., M$
LIFE, YRS.	50.00		5.00		320.549
DISCOUNT %	10.00		10.00		224.757
UNDISCOUNTED PAYOUT, YRS.	0.11		12.00		202.230
DISCOUNTED PAYOUT, YRS.	0.11		15.00		176.907
UNDISCOUNTED NET/INVEST.	117.15		18.00		158.139
DISCOUNTED NET/INVEST.	47.40		20.00		148.078
RATE-OF-RETURN, PCT.	100.00		30.00		114.408
INITIAL W.I., PCT.	1.250		60.00		72.479
			80.00		59.629
			100.00		51.134

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 114

Benrude Area

Benrude Area

SEC Pricing

BENRUDE PROSPECT	DATE	: 03/15/2012
NISKU	TIME	: 11:00:05
T31N R47E SEC 34	DBS	: MHA
	SETTINGS	: SETDATA
	SCENARIO	: MHA12_SEC

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		6.978		0.698		5.583		0.558		86.470		3.288		482.728		1.836		484.563
12-2013		25.434		2.543		18.316		1.832		86.470		3.288		1583.784		6.022		1589.806
12-2014		22.226		2.223		13.335		1.334		86.470		3.288		1153.115		4.385		1157.500
12-2015		19.748		1.975		11.849		1.185		86.470		3.288		1024.583		3.896		1028.479
12-2016		17.776		1.778		10.666		1.067		86.470		3.288		922.266		3.507		925.773
12-2017		16.168		1.617		9.701		0.970		86.470		3.288		838.846		3.190		842.036
12-2018		14.832		1.483		8.899		0.890		86.470		3.288		769.505		2.926		772.431
12-2019		13.703		1.370		8.222		0.822		86.470		3.288		710.936		2.703		713.640
12-2020		12.737		1.274		7.642		0.764		86.470		3.288		660.799		2.513		663.311
12-2021		11.900		1.190		7.140		0.714		86.470		3.288		617.384		2.348		619.732
12-2022		11.168		1.117		6.701		0.670		86.470		3.288		579.418		2.203		581.621
12-2023		10.523		1.052		6.314		0.631		86.470		3.288		545.930		2.076		548.006
12-2024		9.949		0.995		5.969		0.597		86.470		3.288		516.167		1.963		518.130
12-2025		9.436		0.944		5.661		0.566		86.470		3.288		489.538		1.861		491.399
12-2026		8.974		0.897		5.384		0.538		86.470		3.288		465.569		1.770		467.339
S TOT		211.550		21.155		131.382		13.138		86.470		3.288		11360.568		43.198		11403.766
AFTER		58.328		5.833		34.997		3.500		86.470		3.288		3026.164		11.507		3037.670
TOTAL		269.878		26.988		166.378		16.638		86.470		3.288		14386.732		54.705		14441.436

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		0.000		145.398		18.000		0.000		0.000		950.000		-628.834		-628.834		-607.708
12-2013		0.000		477.036		64.500		0.000		0.000		0.000		1048.271		419.436		305.246
12-2014		0.000		347.318		54.000		0.000		0.000		0.000		756.182		1175.618		901.963
12-2015		0.000		308.604		54.000		0.000		0.000		0.000		665.875		1841.493		1379.594
12-2016		0.000		277.787		54.000		0.000		0.000		0.000		593.987		2435.479		1766.891
12-2017		0.000		252.661		54.000		0.000		0.000		0.000		535.375		2970.855		2084.215
12-2018		0.000		231.775		54.000		0.000		0.000		0.000		486.656		3457.510		2346.423
12-2019		0.000		214.134		54.000		0.000		0.000		0.000		445.506		3903.016		2564.627
12-2020		0.000		199.033		54.000		0.000		0.000		0.000		410.279		4313.295		2747.301
12-2021		0.000		185.956		54.000		0.000		0.000		0.000		379.776		4693.070		2901.016
12-2022		0.000		174.521		54.000		0.000		0.000		0.000		353.101		5046.171		3030.938
12-2023		0.000		164.434		54.000		0.000		0.000		0.000		329.572		5375.743		3141.175
12-2024		0.000		155.470		54.000		0.000		0.000		0.000		308.660		5684.403		3235.029
12-2025		0.000		147.449		54.000		0.000		0.000		0.000		289.951		5974.354		3315.178
12-2026		0.000		140.229		54.000		0.000		0.000		0.000		273.110		6247.463		3383.807
S TOT		0.000		3421.803		784.500		0.000		0.000		950.000		6247.463		6247.463		3383.807
AFTER		0.000		911.481		423.000		0.000		0.000		0.000		1703.190		7950.653		3678.095
TOTAL		0.000		4333.284		1207.500		0.000		0.000		950.000		7950.654		7950.653		3678.095

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		269.878		26.988
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		269.878		26.988
NET RES., MB & MMF		166.378		16.638
NET REVENUE, M$		14386.732		54.705
INITIAL PRICE, $		86.470		3.288
INITIAL N.I., PCT.		80.000		80.000

		P.W. %		P.W., M$
LIFE, YRS.	22.83		5.00		5192.321
DISCOUNT %	10.00		10.00		3678.095
UNDISCOUNTED PAYOUT, YRS.	1.60		12.00		3260.061
DISCOUNTED PAYOUT, YRS.	1.67		15.00		2760.365
UNDISCOUNTED NET/INVEST.	9.37		18.00		2371.483
DISCOUNTED NET/INVEST.	5.07		20.00		2157.592
RATE-OF-RETURN, PCT.	100.00		30.00		1425.916
INITIAL W.I., PCT.	100.000		60.00		540.896
			80.00		298.229
			100.00		152.322

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 115

Benrude Area

Sproule Pricing

BENRUDE PROSPECT	DATE	: 03/15/2012
NISKU	TIME	: 11:01:24
T31N R47E SEC 34	DBS	: MHA
	SETTINGS	: SETDATA
	SCENARIO	: MHA12_Sproule

RESERVES AND ECONOMICS

AS OF DATE: 01/2012

END	GROSS OIL		GROSS GAS		NET OIL		NET GAS		NET OIL		NET GAS		NET		NET		TOTAL
MO-YEAR	PRODUCTION		PRODUCTION		PRODUCTION		PRODUCTION		PRICE		PRICE		OIL SALES		GAS SALES		NET SALES
	MBBLS		MMCF		MBBLS		MMCF		$/BBL		$/MCF		M$		M$		M$
12-2012		6.978		0.698		5.583		0.558		91.830		2.720		512.650		1.518		514.169
12-2013		25.434		2.543		17.895		1.790		88.660		3.350		1586.604		5.995		1592.599
12-2014		22.226		2.223		13.335		1.334		85.760		3.710		1143.647		4.947		1148.595
12-2015		19.748		1.975		11.849		1.185		91.180		5.120		1080.392		6.067		1086.459
12-2016		17.776		1.778		10.666		1.067		93.130		5.240		993.300		5.589		998.889
12-2017		16.168		1.617		9.701		0.970		95.110		5.360		922.663		5.200		927.863
12-2018		14.832		1.483		8.899		0.890		97.140		5.490		864.458		4.886		869.344
12-2019		13.703		1.370		8.222		0.822		99.210		5.610		815.682		4.612		820.294
12-2020		12.737		1.274		7.642		0.764		101.320		5.740		774.281		4.386		778.668
12-2021		11.900		1.190		7.140		0.714		103.470		5.870		738.762		4.191		742.953
12-2022		11.168		1.117		6.701		0.670		105.664		6.004		708.034		4.023		712.058
12-2023		10.523		1.052		6.314		0.631		107.902		6.141		681.243		3.877		685.120
12-2024		9.949		0.995		5.969		0.597		110.185		6.280		657.731		3.749		661.479
12-2025		9.436		0.944		5.661		0.566		112.514		6.422		636.980		3.636		640.616
12-2026		8.974		0.897		5.384		0.538		114.889		6.567		618.580		3.536		622.116
S TOT		211.550		21.155		130.961		13.096		97.243		5.056		12735.007		66.212		12801.220
AFTER		58.450		5.845		35.070		3.507		125.604		7.222		4404.908		25.326		4430.234
TOTAL		270.000		27.000		166.031		16.603		103.233		5.513		17139.916		91.539		17231.453

END	AD VALOREM		PRODUCTION		DIRECT OPER		INTEREST		CAPITAL		EQUITY		FUTURE NET		CUMULATIVE		CUM. DISC.
MO-YEAR	TAX		TAX		EXPENSE		PAID		REPAYMENT		INVESTMENT		CASHFLOW		CASHFLOW		CASHFLOW
	M$		M$		M$		M$		M$		M$		M$		M$		@ 10% M$
12-2012		0.000		154.410		18.000		0.000		0.000		950.000		-608.242		-608.242		-588.761
12-2013		0.000		477.885		64.260		0.000		0.000		0.000		1050.453		442.212		326.281
12-2014		0.000		344.467		56.182		0.000		0.000		0.000		747.947		1190.159		916.501
12-2015		0.000		325.414		57.305		0.000		0.000		0.000		703.739		1893.898		1421.293
12-2016		0.000		299.182		58.451		0.000		0.000		0.000		641.256		2535.154		1839.411
12-2017		0.000		277.906		59.620		0.000		0.000		0.000		590.336		3125.490		2189.310
12-2018		0.000		260.375		60.813		0.000		0.000		0.000		548.156		3673.646		2484.655
12-2019		0.000		245.683		62.029		0.000		0.000		0.000		512.582		4186.228		2735.712
12-2020		0.000		233.214		63.270		0.000		0.000		0.000		482.185		4668.413		2950.402
12-2021		0.000		222.515		64.535		0.000		0.000		0.000		455.903		5124.315		3134.929
12-2022		0.000		213.260		65.826		0.000		0.000		0.000		432.972		5557.288		3294.239
12-2023		0.000		205.190		67.142		0.000		0.000		0.000		412.787		5970.075		3432.310
12-2024		0.000		198.108		68.485		0.000		0.000		0.000		394.886		6364.961		3552.383
12-2025		0.000		191.858		69.855		0.000		0.000		0.000		378.903		6743.864		3657.119
12-2026		0.000		186.316		71.252		0.000		0.000		0.000		364.548		7108.412		3748.725
S TOT		0.000		3835.784		907.024		0.000		0.000		950.000		7108.412		7108.412		3748.725
AFTER		0.000		1326.758		616.826		0.000		0.000		0.000		2486.650		9595.061		4174.108
TOTAL		0.000		5162.543		1523.851		0.000		0.000		950.000		9595.062		9595.061		4174.108

	OIL		GAS
GROSS WELLS		1.0		0.0
GROSS ULT., MB & MMF		270.000		27.000
GROSS CUM., MB & MMF		0.000		0.000
GROSS RES., MB & MMF		270.000		27.000
NET RES., MB & MMF		166.031		16.603
NET REVENUE, M$		17139.920		91.539
INITIAL PRICE, $ 91.830		2.720
INITIAL N.I., PCT.		80.000		80.000

		P.W. %		P.W., M$
LIFE, YRS.	22.92		5.00		6050.930
DISCOUNT %	10.00		10.00		4174.109
UNDISCOUNTED PAYOUT, YRS.	1.58		12.00		3668.518
DISCOUNTED PAYOUT, YRS.	1.64		15.00		3073.048
UNDISCOUNTED NET/INVEST.	11.10		18.00		2617.189
DISCOUNTED NET/INVEST.	5.62		20.00		2369.566
RATE-OF-RETURN, PCT.	100.00		30.00		1540.941
INITIAL W.I., PCT.	100.000		60.00		579.890
			80.00		324.198
			100.00		171.920

MHA Petroleum Consultants LLC American Eagle Energy
March 15, 2012
Page 116

LESLIE S. O’CONNOR Managing Partner Petroleum Consultant   MHA Petroleum Consultants LLC 730 17^th Street, Suite 410 Denver, CO 80202 U.S.A.
Phone: +1 303 277 0270
e-mail: loconnor@mhausa.com

EDUCATION

§ Extended BSc Geology with Applied Engineering, North Arizona University, 1978

§ Graduate Studies in Petroleum Engineering, Colorado School of Mines

PROFESSIONAL PROFILE

§ In excess of 30 years of petroleum engineering experience

§ Project management

§ Oil and gas field studies; United States, China, Mexico, South America, Western and Eastern Europe and Asia

§ Petrophysical studies

§ Unitization studies

§ Workover opportunity identification

§ Property evaluation, acquisition and divestitures

§ Reservoir and economic evaluation

§ Expert witness testimony

§ Gas deliverability and gas storage

§ Coal bed methane studies

§ Reservoir simulation

§ Waterflood feasibility studies

§ Development of reservoir engineering courses for industry

§ Studied fields in the United States (essentially all oil and gas areas), U.K. Offshore, China, Mexico, South America, Western and Eastern Europe and Asia

WORK EXPERIENCE

MHA PETROLEUM CONSULTANTS LLC, Denver, Colorado:

(August 2011) Managing Partner and Petroleum Consultant

(March 2008) President and Petroleum Consultant

(May 2006) Vice President and Petroleum Consultant 

MHA Petroleum Consultants LLC Leslie S. O’Connor
Page 117

Responsible for Denver and International operations: project manager, reserve and economic evaluations, litigation support, reservoir studies, acquisition and divestiture support. Manages an organization of approximately 30 people with active engineering projects worldwide. In charge of staff recruitment, development of new business and new business contacts, as well as maintaining relationships with the company’s existing client base.

SPROULE ASSOCIATES INC., Denver, Colorado

(February, 1997 to May, 2006) U. S. Manager and Petroleum Consultant

Responsible for U. S. operations; opened U. S. office for Sproule Associates Ltd. Project manager, reservoir studies, property evaluations, litigation support, acquisition and divestiture support, CBM studies, petrophysical studies, feasibility studies, reservoir and economic studies of properties throughout the U. S.

GEOQUEST RESERVOIR TECHNOLOGIES, DENVER, Colorado:

(Formerly Intera Petroleum and Jerry R. Bergeson & Associates, Inc.)

(January, 1981 to January, 1997) Petroleum Consultant

Technical reservoir studies, property evaluations, secondary recovery studies, gas deliverability and gas storage, petrophysical studies, unitization studies, expert testimony, reservoir and economic studies of properties in Williston Basin, Rocky Mountain, Mid-Continent, West Coast and Gulf Coast areas of the U. S.

THUMS LONG BEACH COMPANY, Long Beach, California:

(January, 1980 to January, 1981) Development/Drilling Engineer

Responsible for design of highly deviated wellbores, completion design, field operations.

Dresser Atlas, Long Beach, California:

(August, 1978 to December, 1979) Field Engineer

Open hole logging operations and log interpretation. Supervised field crew, planned and operated offshore skid unit on Exxon’s offshore Belmont Island platform.

PROFESSIONAL MEMBERSHIPS:

§ Society of Petroleum Engineers – Recipient of the SPE 1995 Regional Service Award, Recipient of the SPE 1990 Denver Section Service Award

§ Society of Petroleum Evaluation Engineers

§ American Association of Petroleum Geologists

§ Society of Professional Well Log Analysts

§ Rocky Mountain Association of Geologists

¨ AAPG Certified Petroleum Geologist #5270

¨ Licensed Professional Geoscientist, Texas #181

¨ Licensed Professional Geologist, Wyoming #PG-3059

¨ Licensed Professional Geologist, Utah #5207412-2250

MHA Petroleum Consultants LLC Leslie S. O’Connor
Page 118

PUBLICATIONS

1. O’Connor, Leslie S. and Seidle, John P. “Well Performance and Economics of Selected U. S. Shales”, The Journal of the Society of Petroleum Evaluation Engineers, Vol. VI, Issue 1, Spring 2012. pp 7-14.

2. “Contingent Resources – Real World Examples”, presented at the 2008 annual SPEE meeting and at the 2008 COGA-RMAG meeting.

3. Seidle, John P. and O’Connor, Leslie S., “The Impact of Undersaturation on Coal Gas Economics”, SPE 107731, presented at the 2007 SPE Rocky Mountain Oil & Gas Technology Symposium, Denver, Colorado, U. S. A. 16-18 April 2007.

4. Seidle, John P., O’Connor, Leslie S., “Production Based Probabilistic Economics for Unconventional Gas”, SPE Paper #82024, 2003

5. Cluff, Suzanne G., O’Connor, Leslie S. and Hansen, John T., “Petrophysical Analysis of the Frontier Formation (Cretaceous), Whiskey Buttes Field, Lincoln County, Wyoming”, SPE Paper 38379, 1997

6. “Remaining Production Potential of Tight Gas Sand Wells in a Reservoir Under Curtailment”, GRI Atlas of Major Rocky Mountain Gas Reservoirs, 1993

7. “Marketing Natural Gas from the Rocky Mountain Region”, GRI Atlas of Major Rocky Mountain Gas Reservoirs, 1993

MHA Petroleum Consultants LLC Leslie S. O’Connor
Page 119