2010-03-11-2010-02-26-2010-04-01

Acquired appx. 88,000 net acres in Fetter, Krejci projects in WY Powder River Basin.

Chesapeake Energy Corp., Oklahoma City, (NYSE: CHK) plans to acquire interests in oil and gas assets in the Powder River Basin of Wyoming from Denver-based American Oil & Gas Inc. (Amex: AEZ) and privately held North Finn LLC, Casper, Wyo., for $49.4 million.

The acquisition involves producing and nonproducing wells as well as undeveloped acreage in Converse, Niobrara and Campbell counties, including all of American's ownership in the Fetter and Krejci projects.

American holds 33,000 net acres (69% working in 48,000 acres) at Fetter Field in Converse County targeting the Frontier and Niobrara oil formations. North Finn holds a 5.625% working interest in Fetter. Chesapeake holds interests in the area and has drilled Wagonhound 23-1H one mile to the west and adjacent at 33N-72W Section 23.

American also holds 55,000 net acres (45% working interest in 126,000 acres) at Krejci Field in Niobrara County targeting the Mowry oil shale in a joint-venture with Brigham Exploration Co., Austin, Texas, (Nasdaq: BEXP) in which five wells have been drilled. The Turner and Sussex formations are also prospective.

American will receive approximately $44 million.

Pat O'Brien, American chief executive, says, "Closing of this sale should allow us to focus our financial and human resources primarily on accelerating the development of the Bakken and Three Forks potential within our Goliath project area. While our Fetter project has recently demonstrated encouraging results from several re-completions into the Niobrara formation, we firmly believe it will take considerable time and considerable financial resources to move this project forward with a risk profile that is more appropriate for a larger organization."

Closing is expected by March 31.

American Oil & Gas operates in the Rocky Mountain region. North Finn was formed by Wayne Neumiller and Mike Neumiller and operates in Wyoming.