The recent fall in oil prices has claimed yet another victim, for now. American Eagle Energy, based out of Littleton, Colorado, has announced that the company is suspending its drilling operations and likely won’t resume until oil prices improve, according to the Wall Street Journal. American Eagle Energy provides exploration and productive long-term reserves from some of North America’s most productive gas and oil formations in the Three Forks and Middle Bakken formation in the Williston Basin.
Despite many oil and gas companies achieving success on Wall Street in 2014, American Eagle Energy (NYSE MKT: AMZE) shares dropped a staggering 9.1 percent to 60 cents in light premarket trading. In comparison, AMZE share prices approached $12 a share in November 2013.
American Eagle said on Wednesday that the company would complete two wells it drilled in the current quarter in next year’s first quarter. That operation is expecting to cost the company about $4.5 million. The company also announced on Wednesday that the production outlook is lower than originally anticipated, dropping to between 2,600 to 2,700 barrels per day—down from original projections of 2,700 to 3,000 per day.
According to analysts polled by Thomson Reuters, American Eagle’s share is projected to fall to 7 cents a share, while revenue is expected to grow 38 percent to $18.6 million this quarter.