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NewsBot Date: June 25, 2005 01:47:38 PM
AEZ News Research American Oil & Gas, Stock Trading Message Board
American Oil & Gas Updates Drilling at Fetter Project
DENVER, Colo., June 21 /PRNewswire-FirstCall/ -- American Oil & Gas, Inc. (AMEX:AEZ) today announced that the Sims 16-26 well has been drilled into the Niobrara/Frontier formations. Natural gas and condensate are flowing to the surface and the natural gas is currently being flared while the Company and other working interest participants determine whether to continue to drill through the target formation or to attempt to complete the well at its current depth.
"Although it is premature to predict commerciality of this well, we are obviously enthused to be flowing natural gas," stated Pat O'Brien, CEO of American. "The under-balanced drilling technology used to drill the bottom portion of the well appears to have enabled us to drill into our target formation safely, efficiently and without reservoir damage. It is important to understand that we still have challenging completion procedures ahead of us and there is no guarantee that this well will prove to be a commercial success."
American owns a 26.25% working interest and is paying 15% of the costs to drill and complete the current Sims 26-16 well. The Company will provide additional information regarding this well as appropriate.
The Fetter project area consists of approximately 51,000 gross acres within American's 103,000 gross acre Douglas Project. Subject to the terms of existing agreements with other working interest participants and with the exception of the Sims 26-16 and four additional drilling locations, American owns a 56.25% overall working interest in the Fetter project acreage position.
American Oil & Gas Announces First Quarterly Profit
DENVER, May 23 /PRNewswire-FirstCall/ -- American Oil and Gas Inc. (AMEX:AEZ) today announced net income of $61,662, or less than one cent per share for its first fiscal quarter ended March 31, 2005 ("2005 Quarter), as compared with a net loss of $161,999, or one cent per share, for the quarter ended March 31, 2004 ("2004 Quarter"). Revenues from its oil and gas operations increased ten-fold to $686,727 for the 2005 Quarter, as compared to $67,914 for the 2004 Quarter.
During the 2005 Quarter, the Company sold 13,726 barrels of oil at an average price of $45.59, resulting in oil revenues of $625,727, and sold 10,069 Mcf of natural gas at an average price of $6.06 per Mcf, resulting in gas revenues of $60,990. During the 2004 Quarter, the Company sold 772 barrels of oil at an average price of $31.12, resulting in oil revenues of $24,021, and sold 12,133 Mcf of natural gas at an average price of $3.62 per Mcf, resulting in gas revenues of $43,893. The Company's lease operating expenses and production taxes were $37,103 ($2.41 per barrel of oil equivalent produced "boe") in the 2005 Quarter versus $20,212 ($7.23 per boe) in the 2004 Quarter. The Company recorded $141,022 ($9.15 per boe), and $19,292 ($6.90 per boe) in depreciation, depletion and amortization expense related to its oil and gas production in the 2005 Quarter and 2004 Quarter, respectively.
The Company's general and administrative expenses were $466,707 for the 2005 Quarter and $189,189 for the 2004 Quarter. The increase in general and administrative expenses relates to costs associated with the merger with Tower Colombia Corporation ("TCC") that closed on April 21, 2005, a management fee paid to TCC of $75,000, increased payroll costs from an increased number of employees and other costs associated with our expanding operations.
At March 31, 2005, the Company had working capital of $4,899,451, $4,391,115 in cash, $9,518,036 in total assets, a long term asset retirement obligation of $42,461, and $9,239,654 in stockholders' equity. There are currently 35,776,202 common shares outstanding.
"Our participation in drilling new wells at our Big Sky project continues to result in increasing oil and gas revenues, and we are pleased to report our first profitable quarter," said Andrew Calerich, President and Chief Financial Officer of American Oil & Gas. "With the stable foundation of revenue and reserve growth resulting from our Big Sky project, we are able to focus on expanding our production and reserve base by drilling other projects within our existing project portfolio."
Operationally, the Sims 16-26 well that is drilling within the Company's Fetter area acreage, is being cased above the Niobrara formation in preparation for under-balanced drilling operations.
American Stock Exchange Lists Common Stock of American Oil & Gas Inc.
NEW YORK, May 17 /PRNewswire/ -- The American Stock Exchange(R) (Amex(R)) today began trading American Oil & Gas Inc. under the ticker symbol AEZ.
American Oil & Gas Inc. is an independent oil and gas exploration and production company, engaged in the exploration, development and acquisition of crude oil and natural gas reserves and production in the western United States.
"We are delighted to have American Oil & Gas list on the American Stock Exchange where a growing roster of energy-related companies choose to list their shares," Amex Equities Group Senior Vice President John McGonegal said. "We look forward to supporting the company's effort to reach a wider investor audience."
"We are pleased to have the opportunity for listing on the American Stock Exchange," said Andrew Calerich, President and CFO of American Oil & Gas Inc. "The Amex has a distinguished tradition of business with companies in the energy sector and we are proud to be a part of that tradition."
American Oil & Gas Approved for American Stock Exchange and Reports Spud of Initial Fetter Well
DENVER, May 9 /PRNewswire-FirstCall/ -- American Oil & Gas, Inc. (OTC:AOGI) (BULLETIN BOARD: AOGI) announced today that its common shares have been approved for listing on the American Stock Exchange. The Company's common shares will begin trading on the AMEX effective upon market open on May 17, 2005, under the ticker symbol "AEZ."
"We are pleased to have the opportunity for listing on the American Stock Exchange," said Andrew Calerich, President and CFO of American Oil & Gas Inc. "The AMEX has a distinguished tradition of business with companies in the energy sector and we are proud to be a part of that tradition."
This approval is contingent upon the Company's being in compliance with all applicable listing standards on the date it begins trading on the American Stock Exchange, and may be rescinded if the Company is not in compliance with AMEX' standards.
The Company also reported that its previously announced Fetter area well, located in the southern Powder River Basin of Wyoming, commenced drilling operations on May 7, 2005. The Sims #16-26 well located in Section 26-T33N-71W is the first of two wells to be drilled in the Fetter area to test the Niobrara and Frontier formations.
American Oil & Gas to Commence Drilling Initial Fetter Well
DENVER, May 2 /PRNewswire-FirstCall/ -- American Oil & Gas, Inc. (OTC:AOGI) (BULLETIN BOARD: AOGI) today announced that it expects to commence drilling the first of two planned wells at its Fetter area project as soon as weather conditions permit. Both wells are targeting the Niobrara and Frontier formations located in an over-pressured area of the southern Powder River Basin of Wyoming, to a total depth of approximately 11,500 feet. The drilling rig and related equipment is on location, however weather conditions have hindered final preparations.
The Fetter field project area consists of approximately 51,000 gross acres within American's 103,000 gross acre Douglas Project. American owns a 75% working interest in the entire Douglas Project acreage. The Fetter field has a history of various exploration and development attempts. Numerous wells, which have been drilled by others over four decades, have encountered and/or produced natural gas and condensate, including four wells drilled in the 1990s (owned by others) that are still producing from the Niobrara and Frontier formations.
The Company believes that prior development efforts were negatively affected by various factors including costs associated with inordinately long single well drill times of greater than six months, drilling techniques and delays in connecting wells that resulted in the potential for significant reservoir damage, and low commodity pricing environments.
The Company has an agreement with an Oklahoma based exploration and production company with expertise in the application of under-balanced horizontal drilling ("UBHD") technologies to participate in the drilling of the two new wells to evaluate the Niobrara and Frontier formations. Under the terms of the agreement, the joint venture participant has brought in specialized equipment to apply its UBHD drilling technology and experience. The joint venture participant will pay 60% of the costs to earn a 50% interest in the first well and will pay 30% of the costs to earn a 25% interest in the second well. Subject to certain additional funding terms, the joint venture participant will earn a 25% WI in the Fetter area AMI. American will pay 30% to own a 37.5% WI in the first well and will pay 52.5% to own a 56.25% WI in the second well. Subject to terms of this agreement, American would retain a 56.25% WI in the entire Fetter area AMI.
"We're pleased to report that drilling at Fetter is about to begin," said Pat O'Brien, CEO of American Oil & Gas. "By utilizing advances in drilling technologies in the top portion of the well and then by applying modern, under-balanced horizontal drilling, we are optimistic that we will be successful in getting through the target formations as quickly and as efficiently as possible. We fully expect to drill to the top of the Niobrara in a matter of weeks, as opposed to the months that it has historically taken to drill wells in this area. We'll have a natural gas line at the location so if we are successful, we can immediately flow gas to the processing plant. We expect the application of UBHD will allow us to get through the over-pressured Niobrara and Frontier formations without reservoir damage, and we are fortunate to be teamed up with an industry participant with experience in the application of this technology."
Commenting on the Company's previously announced result at South Glenburn, CEO Pat O'Brien said, "while it is unfortunate that the South Glenburn exploration effort was not successful, it is important to understand that this was a peripheral project to our portfolio. The risk/reward profile made South Glenburn a very compelling and affordable prospect."
American Oil & Gas, Inc. is an independent oil and natural gas company engaged in exploration, development and production of hydrocarbon reserves primarily in the Rocky Mountain region. Additional information about American Oil & Gas, Inc. can be found at the Company's website: http://www.americanoilandgasinc.com/.
This release and the Company's website referenced in this release contain forward-looking statements regarding American Oil & Gas, Inc.'s future plans and expected performance that are based on assumptions the Company believes to be reasonable. A number of risks and uncertainties could cause actual results to differ materially from these statements, including, without limitation, the success rate of drilling efforts and the timeliness of development activities, fluctuations in oil and gas prices, and other risk factors described from time to time in the Company's reports filed with the SEC. In addition, the Company operates in an industry sector where securities values are highly volatile and may be influenced by economic and other factors beyond the Company's control. This press release may include the opinions of American Oil & Gas, Inc. and does not necessarily include the views of any other person or entity.
Contact:
Andrew Calerich, President Neal Feagans, Investor Relations
303.991.0173 Fax: 303.595.0709 Feagans Consulting, Inc
1050 17th Street, Suite 1850 303.449.1184
Denver, CO 80265
American Oil & Gas, Inc.
Web site: http://www.americanoilandgasinc.com/
