American Energy Development Provides Drilling Update 4 on Cremer 1-1 Well

NEW YORK, May 11, 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, has reported the progress of drilling the Cremer 1-1 well.

Located on the company's Dansville Prospect, the Cremer 1-1 well was spudded on April 24, targeting a Niagaran reef structure and reached total depth of approximately 4,500 feet on May 8. The geophysical logging data was carefully examined for density, porosity and water saturation in order to determine reservoir size, quality and deliverability. After evaluating findings of the log analysis and seeking opinions and options from the company's and operator's panel of geoscientists and engineers, it was determined that during drilling the well encountered the flank of the structure and detected presence of salt plugging in the drilled area of the formation.

Given the good porosity, permeability and oil shows in the structure, the drilling contractor has cement plugged the Cremer 1-1 well, which will enable the well to be re-entered when a final development plan has been determined. Options include sidetracking the well, targeting the top of the structure.

Cremer 1-1 was the second in a series of planned wells targeted on the Dansville. The first was the Brown 2-12, which has been producing oil since December 2011. Management remains on plan with its lower-risk well site identification strategy and believes it has potentially identified several reefs including the producing Brown 2-12 and recently drilled Cremer 1-1.

"Cremer 1-1 demonstrated that the advanced 3-D seismic technology has again identified a reef structure," noted Herold Ribsskog, AED's CEO. "We have confidence in our geological and geophysical work on the Dansville Prospect and are pressing ahead with our work program in Michigan to develop several reef structures."

Historical records of the Niagaran reef production in Michigan confirm over 4,200 wells being drilled targeting reef formations, and producing a total of 472 million barrels of oil and 2.8 trillion cubic feet of natural gas, with development of reef trends driven by 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. 

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 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.

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.