American Energy prepares 2nd well location on Dansville Prospect

Source: American Energy Development Corp.

American Energy Development Corp. (OTCBB:AEDC.OB), hereafter "AED," has identified its second well location on the 1,343 acre Dansville Prospect in Southern Michigan, with spudding planned to begin in April.

AED's Cremer 1-1 well is the second of a series of wells planned on the prospect and located approximately one mile North-Northwest of AED's successful Brown 2-12 well. By utilizing the latest geological and geophysical technology, including the company's 19.23 square miles (12,300 acres) of high-resolution 3-D seismic data, AED has been able to build detailed analysis of the potential reef structure, to target areas of highest porosity with the best potential for recoverable reserves.

Data suggests the Cremer 1-1 reef structure is comparable in pinnacle height to the company's first drilled well, Brown 2-12, which was drilled on the Brown-12 reef structure. AED will apply the knowledge gleaned from the drilling of the Brown 2-12 to developing Cremer 1-1, while again using proprietary drilling techniques. The operator has contracted a conventional rotary drilling rig from a service provider under a turn-key contract, which includes the drill bits, blow-out preventers, surface casing, fuel, well supervision and engineering.

The drill location for Cremer 1-1 is already surveyed, bonded, and permitted. A direct access road is being prepared in order to move drilling equipment onto the site. The drilling rig is expected to arrive in the second week of April, with drilling to begin soon after.

The Dansville Prospect is located in close proximity to wells drilled by Exxon Mobil, BP and Royal Dutch Shell. The Niagaran reef play in Michigan has produced in excess of 470 million barrels of oil and 2.8 trillion cubic feet of natural gas. According to a USGS report, recoverable reserves are believed to be in excess of 1.8 billion barrels of oil and 17 trillion cubic feet of natural gas.

"The success at Brown 2-12 has provided a road map for development at Cremer 1-1," said Herold Ribsskog, president of AED. "We expect that the drilling stage of the Cremer 1-1 well will follow a similar timeline as was achieved with the Brown 2-12 well, while again delivering positive results to our stockholders."


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