WESTPORT, Conn., Feb. 9, 2012 (GLOBE NEWSWIRE) -- The American Energy Group, Ltd. (Pink Sheets:AEGG) announced today that it has initiated legal proceedings in the High Court of Islamabad Pakistan against Hycarbex-American Energy, Inc. ("Hycarbex") and its parent company, Hycarbex Asia Pte. Limited ("Hycarbex-Asia"), and third parties to enforce the provisions of the existing agreements pertaining to the Yasin, Sanjawi and Zamzama North petroleum concessions in which American Energy holds an interest. In particular, the legal proceedings seek preservation of the status quo through injunctions, court appointment of a receiver to facilitate payment to American Energy of its gross production interests in the Yasin Block concession which were suspended in November by Hycarbex in breach of these existing agreements, and court declaration of the respective rights of the parties under the agreements. The Islamabad High Court has issued injunctions preserving the status quo. Other matters are pending before the Court.
The American Energy Group, Ltd. further announced that it has completed two transactions for the sale of common shares to private investors in order to provide short-term general and administrative operating capital while the legal proceedings are pending. The transactions provided for the sale of 1,500,000 shares for $150,000 and the sale of 666,667 shares for $100,000, respectively. Management intends to make future sales of securities as needed to fund operations until the accrued, unpaid Yasin production proceeds are paid and monthly Yasin production payments are resumed as a result of successful resolution of the legal proceedings or voluntary payment compliance by Hycarbex.
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 successful resolution of pending legal proceedings which may not occur, and including potential production rates and/or potential reserves, which estimates are unproven and not based upon actual production data. 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, court or tribunal rulings 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.