American Oil & Gas: Activity Accelerates at Bakken, Goliath Project

American Oil & Gas reported that drilling operations have commenced on American's Ron Viall 1-25H well located in 156N-98W Sections 24 and 25 in Williams County, ND. The well is currently drilling at an approximate vertical depth of 10,930' and a measured depth of 11,080'. Casing has been set around the curve and current operations are focused on drilling the planned 9,000' lateral in the Bakken formation. The Ron Viall well is spaced on 1,280 acres. American owns a 95% working interest in this well.

The Tong Trust 1-20H well, located in Sections 17 and 20 of T157N-R96W, Williams County, ND, is scheduled for completion operations to commence in early March. This well is being drilled, completed and funded under the terms of a previously announced participation agreement. The casing, and the associated completion assembly have been set which will facilitate up to 26 fracture stimulation stages in the Bakken formation.

In other Goliath activity, American is participating with an approximate 6% working interest in the outside operated Heidi 1-4H well, which is located on the western edge of the Goliath project area, in T156N-R99W, Section 4. The Heidi well commenced drilling on February 5, 2010 and is permitted as a horizontal test of the Three Forks formation. Log and core data from both the Bakken and Three Forks formations is expected to be obtained before horizontal drilling takes place. This well is spaced on 640 acres.

Pat O'Brien, CEO of American, commented, "Activity continues to accelerate both within and around our Goliath project area. In order to ensure timely development of our acreage position, we are pleased to announce that we have recently contracted Nabors Rig 486, that is currently drilling our Ron Viall 1-25H well, to return to our Goliath project after fulfilling an obligation to drill one well for another operator. Upon return of this drilling rig, we expect to commence a continuous drilling program within our acreage."

Outside of the core Goliath area, American is preparing to operate the drilling of the Summerfield 15-15H well in Sec 15-147n-96w, Dunn County, ND. Drilling is expected to commence in late March. The Summerfield well is spaced on 640 acres and is designed and permitted as a horizontal Bakken well. American owns a 38.125% working interest. Recent Bakken wells drilled by other operators offsetting the Summerfield 15-15H well location have demonstrated commercial results, with average daily production for the initial 30 day production period of 450 to 550 barrels of oil equivalent. American has committed to retain the rig used to drill the Summerfield well for at least two additional wells within its core Goliath project acreage after drilling of the Summerfield well is completed.