NEW YORK, Oct. 19, 2012 (GLOBE NEWSWIRE) -- American Energy Development Corp. (AED) (OTCBB:AEDC), an emerging energy company involved in the acquisition, exploration, development and production of established oil and gas basins, reported financial results and filed its Form 10-K for its fiscal year ended June 30, 2012.
Fiscal 2012 Highlights
- Brown 2-12 well brought online in December 2011, continued in full production with limited 'water cut' through mid-year.
- Produced more than 1,100 barrels of oil on a net basis, with an average sales price of $92.25.
- Completed the lease acquisition of approximately 4,000 acres in Northern Lower Michigan, known as the White-tail Prospect.
- Closed acquisition of 24,700 acre Windsor Prospect in the Weald Basin, United Kingdom.
- Generated revenue of $89,011
"During fiscal 2012, we transitioned from an exploration company to a production company, as the Brown 2-12 well came online in late calendar 2011," said Herold Ribsskog, CEO of AED. "We have been able to increase our acreage position significantly this past year, adding about 4,000 high value acres in Michigan and 24,700 acres in the United Kingdom
"The White-tail prospect expands AED's presence within Michigan's proven Niagaran reef play. Reefs in the Northern Michigan are typically 50-400 acres in size, 200-7,000 feet in depth and located within an oil bearing 12-15 mile wide reef belt. The Northern Michigan reef belt is a proven play with more than 110 fields containing reserves greater than 1 million barrels. Data from the initial seismic survey done prior to our acquisition suggests there are five separate reef prospects on this acreage.
"In fiscal 2013, we plan to conduct a new 3D seismic study on the White-tail prospect to identify what is likely to be the next 2-3 drill sites. The drill program on White-tail should provide us with short-lead projects and the potential for near term revenue. Our objective is to exit fiscal 2013 with multiple producing sites, augmenting production from our successful Brown 2-12 well on the Dansville prospect.
"We will continue to manage exploration risk by utilizing the most modern proven technology available, like 3D seismic mapping, as we look to identify our next drill sites as well as acquire incremental acreage in historical oil producing regions. We believe this strategy will produce a higher success rate of producing wells and create 'value through the drill bit' for our shareholders."
About American Energy Development Corp.
American Energy Development Corp. is an independent US energy company, committed to creating American energy independence through the development of acreage in established oil and gas basins. Using the latest geological, geophysical, and environmental technology, the Company's goal is to locate, drill, and produce oil and gas in the United States and secure regions. American Energy Development's focus is on the development of Niagaran oil reefs in Michigan and the underexplored onshore basins in the United Kingdom.
Forward Looking Statements
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company's growth and business strategy. Words such as "expects," "will," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations on such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, risks associated with drilling and production programs resulting from geological, technical, drilling, seismic and other unforeseen problems; unexpected results of exploration and development drilling and related activities; continued availability of capital and financing; increases in operating costs; risks associated with oil and gas operations in general; availability of skilled personnel; unpredictable weather conditions; and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
Cautionary Note to U.S. Investors - The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only reserves that comply with the definitions presented at Rule 4-10(a) of Regulation S-X. We use certain terms in this press release that the SEC's guidelines strictly prohibit us from including in filings with the SEC. Examples of such disclosures would be statements regarding "probable," "possible," or "recoverable" "reserves" and "resources" among others. U.S. Investors are urged to consider closely the disclosure in our Annual Report on Form 10-K and Form S-1, File No. 333-169014, available from us at American Energy Development Corp., 1230 Avenue of the Americas, 7th Floor, New York, NY 10020.
|American Energy Development Corp.|
|Joel Felix, Chief Financial Officer|
|Liolios Group, Inc.|
|Tel (855) OIL-AEDC (645-2332)|