American Energy Development, an independent U.S. energy company focused on developing acreage in established oil and gas basins, today announced it has drawn $1 million from its previously announced $7.8 million financing agreement for the continued development of its Michigan assets.
The company recently commenced production of its Brown 2-12 well and is preparing to resume its drilling program in Michigan targeting Niagaran reef structures. The company also plans to continue its exploration for other opportunities in Michigan.
To execute its plans for continued growth, AED will allocate funds toward: the Dansville Drilling Development program located on 1,343 acres in Ingham County; the high-resolution 3D seismic survey on the 4,200 acre White-tail prospect in Northern Michigan; and securing new project inventory to ensure continued long-term growth.
“The cash drawdown will fund the next stage of our development program,” Joel Felix, AED’s CFO stated in the press release. “With production from the first well, Brown 2-12, generating revenue, we intend to allocate these new funds ‘through the drill bit’ in order to increase our oil resources and revenues, which we believe will ultimately deliver long-term shareholder value.”
Based on high-resolution 3D seismic data, AED has identified additional targets on its Dansville Prospect. The company has surveyed and bonded the Cremer 1-well, also on the Dansville prospect, and has obtained the necessary permitting from the State of Michigan to allow for drilling to commence.
AED’s expansion into Northern Michigan with the White-tail Prospect is located in an area with a proven reef play covering approximately 2.5 million acres in Northern Michigan. From the initial seismic survey, AED has identified five reefs on the White-tail Prospect and will now conduct a new high-resolution 3D seismic survey to further define each reef prospect.
For more information visit www.aed-corp.com
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