American Oil & Gas Announces Drilling and Participation Deal

American Oil & Gas announced that it has entered into a drilling and participation agreement with Calgary, Alberta-based Turnkey E&P to drill the next two wells, with the option for a third well, at American's approximate 51,000 gross acre Fetter project.

Turnkey will apply casing drilling technology to the approximately 51,000-acre field with one of its four purpose-built casing drilling rigs. The first well is expected to commence drilling by May 15.

Casing drilling utilizes the actual steel casing as the drilling string--versus drilling with drill pipe--and installs the casing in the wellbore while drilling. This process reportedly has been shown to reduce, overcome, or eliminate the risk of wellbore collapse, stuck pipe, lost circulation, and other well control issues in many applications.

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