NEW YORK, April 24, 2012 (GLOBE NEWSWIRE) -- American Energy Development Corp. (AED) (OTCBB:AEDC) is pleased to report that the drilling rig has arrived on site for the commencement of drilling on the Cremer 1-1, located on the 1,343 acre Dansville Prospect in Southern Lower Michigan.
The conventional rotary drilling rig arrived on the well site on Monday April 23, and is now in the process of rigging up to commence drilling on the Cremer 1-1 to a total depth of approximately 4,500 feet. As with the company's initial drill site, Brown 2-12, AED plans to target a pinnacle structure within the Niagaran reef formation.
AED's first well drilled on the prospect, Brown 2-12, is currently on full production and producing with zero water cut. As part of AED's strategy to maximize the reef structure, an independent technical information report is currently being prepared by an independent consultant to evaluate oil in place in the reef structure.
Historical records of the Niagaran reef production in Michigan confirm more than 4,200 wells have been drilled targeting reef formations, producing a total of 472 million barrels of oil and 2.8 trillion cubic feet of natural gas, with development of reef trends led by major industry players, including Royal Dutch Shell, BP and ExxonMobil. According to a recent USGS report on the basin, the recoverable reserves are in excess of 1.8 billion barrels of oil and 17 trillion cubic feet of natural gas.
"After applying a great deal of analysis to existing 3D seismic data, we were able to identify Cremer 1-1 location as our second well site," said Herold Ribsskog, president of AED. "We are excited that the drilling rig has arrived on site, and is already in the process of rigging up to commence drilling tomorrow. We maintain our ethos that the utilization of the latest technologies on our drill-ready sites will result in additional low risk and high impact productive oil wells. We look forward to further positive updates for our shareholders in the very near future."
To receive further information about American Energy Development Corp., contact (855) OIL-AEDC or email ir@aed-corp.com.
About American Energy Development Corp
American Energy Development Corp. is an independent U.S. 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.
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 "oil in place" 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.
Company Contact:
American Energy Development Corp.
Joel Felix, Chief Financial Officer
Tel 646-756-2851
info@aed-corp.com
Investor Contact:
Justin Vaicek
Liolios Group, Inc.
Tel (855) OIL-AEDC (645-2332)
ir@aed-corp.com