2008-12-02-2008-10-27-2008-10-27

Bought 36,000 net acres in Powder River Basin in Converse County, WY.

An undisclosed buyer has completed its acquisition of 36,000 net acres in the southern Powder River Basin of Wyoming from American Oil & Gas Inc., Denver, (Amex: AEZ) for approximately $26.4 million. American holds 128,000 gross (70,000 net) acres in the Douglas project area in Converse County. Of the 36,000 net acres, 33,000 net acres are in the West Douglas and Douglas project areas and 3,000 acres are on the far western edge of the Fetter project area. Included in the sale is American's carried interest in State Deep 7-16 well that is currently in the process of being completed at West Douglas. Pat O'Brien, American chief executive, says the acreage was noncore and the company will use the proceeds to focus on programs in Fetter Field, Goliath Bakken and Krejci projects. American operates primarily in the Rocky Mountains.