American to Receive Approximately $27 Million From Sale of the Non-Core Portion of...

American to Receive Approximately $27 Million From Sale of the Non-Core
Portion of Its Douglas Project

DENVER, Aug. 27 /PRNewswire-FirstCall/ -- American Oil & Gas, Inc.
(Amex: AEZ) has entered into a definitive agreement with a major independent
natural gas producer to sell 36,000 net acres in its 128,000 gross (70,000
net) acre Douglas project area for approximately $27 million. Of the 36,000
net acres, 33,000 net acres are located in the West Douglas and Douglas
project areas and 3,000 acres are located on the far western edge of the
Fetter project area. Included in the sale is American's carried interest in
the State Deep 7-16 well that is currently in the process of being completed
at West Douglas. The agreement is subject to land due diligence and is
expected to close by late October.
Pat O'Brien, CEO of American commented, "We are very pleased to announce
this agreement to sell a portion of our non-core acreage. We plan to use the
proceeds of this sale to focus on our ongoing programs in the Fetter Field,
Goliath Bakken and Krejci projects and to continue our land acquisition
activities in new areas that we believe hold significant potential for
American."
American Oil & Gas, Inc. is an independent oil and natural gas company
engaged in exploration, development and production of hydrocarbon reserves
primarily in the Rocky Mountain region. Additional information about American
Oil & Gas, Inc. can be found at the Company's website:
http://www.americanog.com.
This release and the Company's website referenced in this release contain
forward-looking statements regarding American Oil & Gas, Inc.'s future plans
and expected performance that are based on assumptions the Company believes to
be reasonable. A number of risks and uncertainties could cause actual results
to differ materially from these statements, including, without limitation, the
success rate of drilling efforts and the timeliness of development activities,
fluctuations in oil and gas prices, and other risk factors described from time
to time in the Company's reports filed with the SEC. In addition, the Company
operates in an industry sector where securities values are highly volatile and
may be influenced by economic and other factors beyond the Company's control.
The Company undertakes no obligation to publicly update these forward-looking
statements to reflect events or circumstances that occur after the issuance of
this press release or to reflect any change in the Company's expectations with
regard to these forward-looking statements or the occurrence of any
unanticipated events. This press release may include the opinions of American
Oil & Gas, Inc., and does not necessarily include the views of any other
person or entity.
Contact:
Andrew Calerich, President Neal Feagans, Investor Relations
303.991.0173 Fax: 303.595.0709 Feagans Consulting, Inc
1050 17th Street, Suite 2400 - 303.449.1184
Denver, CO 80265

SOURCE American Oil & Gas, Inc.

Andrew Calerich, President of American Oil & Gas, Inc., +1-303-991-0173, Fax,
+1-303-595-0709; or Neal Feagans of Feagans Consulting, Inc, Investor
Relations, +1-303-449-1184, for American Oil & Gas, Inc.