Westport, Connecticut, Aug. 14, 2015 (GLOBE NEWSWIRE) -- The American Energy Group, Ltd. (AEGG) announced today that it has entered into a loan transaction with an institutional investor for the borrowing of $200,000. The lender has made four prior loans to the Company announced in 2014 and 2015. The current loan provides for an interest rate of 5.0% per annum, a maturity date of February 5, 2016, and repayment prior to maturity out of 25% of any proceeds of hydrocarbon production received by the Company, any International Chamber of Commerce refunds related to the Company's recent international arbitration proceeding, or any lump sum settlement payments from any of the adverse parties in that arbitration. The loan is secured by a first lien on the Company's non-producing Texas oil and gas interests. The loan also includes the issuance to the lender of two million warrants to purchase the Company's common stock at $0.20 per share which expire February 5, 2020. The Company further announced that it has sold 233,334 Common Shares to two (2) individual investors for a cash consideration of $0.15 per share or a total consideration of $35,000 to the Company. The proceeds of each transaction will be used for general and administrative operating capital including legal expenses.
This news release contains forward-looking statements, including estimated time lines for future events. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events, or performance and underlying assumptions and other statements, including potential production rates and potential reserves, which estimates are unproven and not based upon actual production data or historical facts. Forward-looking statements are subject to uncertainties and risks including, but not limited to, economic conditions, drilling risks and actual operating conditions and results, deviation in costs of critical equipment and services, deviation in production decline rates, the impact of competition and commodity pricing, and domestic and foreign governmental regulation and approvals.
All forward-looking statements in this disclosure, whether made by, or on behalf of the Company or by or on behalf of the project operator, are expressly qualified by the above cautionary statements and any other cautionary statements which accompany the forward-looking statements. In addition, the Company disclaims any obligation to update forward-looking statements to reflect events or circumstances after the date hereof.
CONTACT: Pierce Onthank, President and CEO (203) 222-7315 or firstname.lastname@example.org. Source: TheAmerican Energy Group Ltd.