American Oil & Gas Acquires Stake in Wyoming Acreage

American Oil and Gas along with Tower Colombia Corporation and North Finn, LLC, has signed a letter of intent to enter into an option agreement which will allow American to earn a 50% interest in approximately 90,000 gross undeveloped leasehold acres in Converse County, Wyoming. Tower and North Finn will earn the remaining 50% interest. The option allows earning of the interests through a series of cash payments and drilling commitments. Subject to due diligence, the Company expects to sign a formal purchase and sale agreement on or before June 1, 2004.

The Company has identified multiple exploration opportunities within the identified acreage block.