American Oil & Gas, Inc. has entered into a definitive agreement with a major independent natural gas producer to sell 36,000 net acres in its 128,000 gross (70,000 net) acre Douglas project area for approximately $27 million.
Of the 36,000 net acres, 33,000 net acres are located in the West Douglas and Douglas project areas and 3,000 acres are located on the far western edge of the Fetter project area. Included in the sale is American's carried interest in the State Deep 7-16 well that is currently in the process of being completed at West Douglas. The agreement is subject to land due diligence and is expected to close by late October.
Pat O'Brien, CEO of American, commented, "We are very pleased to announce this agreement to sell a portion of our non-core acreage. We plan to use the proceeds of this sale to focus on our ongoing programs in the Fetter Field, Goliath Bakken and Krejci projects and to continue our land acquisition activities in new areas that we believe hold significant potential for American."
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