Scottsdale, Arizona (PRWEB) October 21, 2012
QualityStocks would like to highlight American Energy Development Corp., an emerging publicly traded independent US energy company committed to creating American energy independence through the development of acreage in established oil and gas basins. The company is currently working projects totaling 30k acres, focused on northern Michigan and the UK.
In the company’s news last week,
American Energy Development offered financial results for FY12 (ended June 30), alongside a 10-K filing.
Chief among the highlights is the transitional Brown 2-12 well on the Dansville prospect, which took American Energy out of mere exploration and into production as it went online in December of last year, pumping some 1,110 bbls ($92.25 average) or more net through full production to mid-year with very little water cut. In addition to closing on the 24.7k-acre Windsor prospect, the company nailed down another big addition to their footprint in Michigan, with the completion of the lease acquisition on the 4k-acre White-tail prospect.
CEO of American Energy, Herold Ribsskog, clearly pleased by the over $89k in revenues generated, underscored the substantial acreage additions also secured during the last year, citing the White-tail prospect in particular as helping to really flesh out the company’s strategic position in the proven Niagaran play. Given that the average Northern Michigan reef is usually a 50 to 400-acre wide, 200 to 7k-foot deep structure within the 12 to 15-mile wide oil bearing reef belt, American Energy's move to capture a larger strategic footprint in the roughly 2.5M-acre play is sound.
Ribsskog emphasized the established nature of the play, with its 110 or more fields representing reserves in excess of 1M bbls and asserted that the initial seismic survey data obtained from work done prior to the acquisition, offered a clear picture of five distinct reef prospects on new acreage. Ribsskog cited a planned 3D seismic study on the White-tail slated for 2013 and projected 2 to 3 drill sites being initially established as part of a larger program that should turn up the kind of rich, short-lead project stack which could spell some choice near term revenue for American Energy.
The plan for 2013 is to exit the year with multiple sites online and producing in conjunction with upgraded output from the Brown 2-12. Ribsskog assured investors that the company would continue to employ the latest methods for generating empirically validated analysis, like 3D seismic mapping, as American Energy progresses. Ribsskog expressed great confidence in this philosophy, that every project’s economic feasibility is won or lost before the first production drill breaks ground, on the basis of superior information.
Indeed, knowledge is power and one of the driving forces behind American Energy's success thus far has been this firm commitment to utilizing the latest geological and geophysical technology to minimize shareholder risk. A serious desire for near-term revenue acid testing and a keen eye for building a diverse portfolio have reinforced the rest of the business model quite well. American Energy has a very solid stance from which to pursue yet more incrementally acquired acreage, to a great extent because of the company’s rigorous due diligence attitude and emphasis on proven basins. There is tremendous upside potential in a rapidly emerging company like American Energy and these strong financials for the fiscal year go a long ways towards courting the kind of additional capital expenditure leeway needed to fully realize the obvious potential in Michigan, as well as the vast, less obvious potential in onshore UK hydrocarbons.
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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.