QualityStocks would like to highlight American Energy Development Corp. (OTCBB: AEDC), 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.
In the company’s news yesterday,
American Energy Development announced it has drawn $1 million from its previously announced $7.8 million financing agreement for the continued development of its Michigan assets.
The company recently commenced production of its Brown 2-12 well and is preparing to resume its drilling program in Michigan targeting Niagaran reef structures. The company also plans to continue its exploration for other opportunities in Michigan.
To execute its plans for continued growth, AED will allocate funds toward: the Dansville Drilling Development program located on 1,343 acres in Ingham County; the high-resolution 3D seismic survey on the 4,200 acre White-tail prospect in Northern Michigan; and securing new project inventory to ensure continued long-term growth.
“The cash drawdown will fund the next stage of our development program,” Joel Felix, AED’s CFO stated in the press release. “With production from the first well, Brown 2-12, generating revenue, we intend to allocate these new funds ‘through the drill bit’ in order to increase our oil resources and revenues, which we believe will ultimately deliver long-term shareholder value.”
Based on high-resolution 3D seismic data, AED has identified additional targets on its Dansville Prospect. The company has surveyed and bonded the Cremer 1-well, also on the Dansville prospect, and has obtained the necessary permitting from the State of Michigan to allow for drilling to commence.
AED’s expansion into Northern Michigan with the White-tail Prospect is located in an area with a proven reef play covering approximately 2.5 million acres in Northern Michigan. From the initial seismic survey, AED has identified five reefs on the White-tail Prospect and will now conduct a new high-resolution 3D seismic survey to further define each reef prospect.
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Forward-Looking Statement:
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.
