Dansville oil prospect rig arrival and setup announced

Source: American Energy Development Corp.

American Energy Development Corp. (AED) (AEDC.OB) 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."


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