American Eagle Energy Halts Drilling Plans – WSJ

American Eagle Energy Corp. said Wednesday that it has suspended its drilling operations and likely won’t resume until oil prices improve, the latest sign that a glut in crude oil is stifling exploration and production across the industry.Shares dropped 9.1% to 60 cents in light premarket trading. The stock is one of the hardest hit in the energy sector this year and approached $12 a share in November 2013.Oil prices have plummeted in the second half of 2014 as a flood of crude from U.S. shale disrupted the global oil market, leading a host of energy companies to cut drilling, lay off workers and slash spending.Earlier this month, Chevron Corp. told Canadian regulators that it had “indefinitely” suspended plans to drill for oil in Arctic waters. Energy giants ConocoPhillips and BP PLC, along with a number of smaller companies like Husky Energy Inc. and Penn West Petroleum Ltd. , have also said they would pare capital spending plans, while EOG Resources Inc. has said it would shed many of its Canadian oil and gas fields to refocus on the U.S.

via American Eagle Energy Halts Drilling Plans – WSJ.

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