On July 2, 2007 American announced that it had signed a West Douglas participation agreement with Red Technology Alliance, LLC whereby RTA will fund 100% of the drilling and, if warranted, the completion costs of a deep test well. In return, RTA will earn a 50% working interest in the approximate 40,000 gross acre West Douglas project in Converse County, Wyoming. American's West Douglas project is located west of the Fetter Project acreage, along the southern basin bounding fault in the Powder River Basin and is part of American's Douglas project area. American currently owns a 90% working interest in the West Douglas acreage position and privately held North Finn LLC owns the remaining 10%. American will own a 45% carried working interest in the test well and will retain a 45% working interest in the West Douglas undrilled acreage.
At the Hageman 16-34H well in the Company's Fetter field, re-entry operations have resulted in the determination that the existing wellbore is not suitable for re-entry operations to continue to the targeted Frontier formation as originally planned. This determination has resulted in the decision to move the rig within the same location and commence operations to drill a new horizontal well. Preliminary activities are underway to move the rig with drilling operations expected to commence shortly.
American Oil & Gas Inc. is an independent oil and natural gas company engaged in exploration, development and production of hydrocarbon reserves primarily in the Rocky Mountain region.
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