American Energy To Add Reservoir Resources As Subsidiary

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
13MM
Description

Acquired company which holds 24,700-acre Windsor prospect license in U.K Weald Basin.

American Energy Development Corp., New York, (OTCBB: AEDC) has acquired Aberdeen, U.K.-based Reservoir Resources Ltd. for US$12.5 million in stock.

AED will issue 12.5 million shares to Reservoir, which will operate as a subsidiary.

Reservoir Resources owns the Windsor prospect license in the U.K Weald Basin. The Windsor prospect is in geological formations and structures that extend and originate from the North Sea with its estimated 30 billion barrels of oil actively being developed by ExxonMobil, Royal Dutch Shell, BP and the BG Group.

The Windsor prospect is a 24,700 acre onshore exploration prospect in Windsor, U.K.. The acreage is in an oil producing area located among other producers, including BP, Petronas and Northern Petroleum, and is close to Europe's largest onshore oil and gas field, the 500-million barrel Wytch Farm oil field.

Seismic mapping of the prospect demonstrates a northwest to southeast trending closed anticline. Middle Jurassic oil shows and oil production are found throughout the Weald Basin from oil and gas like Humbly Grove, Stockbridge, Albury and Palmers Wood, and pointing to an active widespread petroleum system. An independent geological report indicates that the Windsor Prospect acreage could have an estimated prospective resource potential of up to 615,000,000 barrels of oil in place.

AED has begun the initial phase of outlining a development program for the project. The anticipated commencement of the first well is scheduled for the second half of 2012. AED plans to use advanced, proven technology and proprietary techniques to drill a test well to a total depth of approximately 1,300 feet in order to verify the hydrocarbon potential of the play.

American Energy Development president Herold Ribsskog says "The interpretation of our seismic data in conjunction with the sizeable acreage position indicate considerable reserves in the Windsor Prospect, which could lead to a substantial oil and gas revenue stream once successfully developed."