core sector communique

 

            2 March 2010

 

            Goliath Drilling Program Update

 

The following release was issued on 25 February 2010, by Sundance Energy Australia Limited’s partner in the Company’s Goliath Prospect located in North Dakota.

 

Sundance has a 5% equity interest in the Goliath Prospect Joint Venture with American Oil & Gas; American owns 95% and is the prospect’s operator.

 

American Oil & Gas Inc. Updates Bakken And Three Forks Goliath Project

(Nabors Rig 486 Under Contract For Continuous Drilling Program)

 

DENVER, February 25, 2010 - American Oil & Gas Inc. (NYSE AMEX:AEZ) announces that drilling operations have commenced on American's Ron Viall 1-25H well located in 156N-98W Sections 24 and 25 in Williams County, ND. The well is currently drilling at an approximate vertical depth of 10,930' and a measured depth of 11,080'. Casing has been set around the curve and current operations are focused on drilling the planned 9,000' lateral in the Bakken formation. The Ron Viall well is spaced on 1,280 acres. American owns a 95% working interest in this well.

 

The Tong Trust 1-20H well, located in Sections 17 and 20 of T157N-R96W, Williams County, ND, is scheduled for completion operations to commence in early March. This well is being drilled, completed and funded under the terms of a previously announced participation agreement. The casing, and the associated completion assembly have been set which will facilitate up to 26 fracture stimulation stages in the Bakken formation.

 

In other Goliath activity, American and Sundance are participating with an approximate 6% working interest in the outside operated Heidi 1-4H well, which is located on the western edge of the Goliath project area, in T156N-R99W, Section 4. The Heidi well commenced drilling on February 5, 2010 and is permitted as a horizontal test of the Three Forks formation. Log and core data from both the Bakken and Three Forks formations is expected to be obtained before horizontal drilling takes place. This well is spaced on 640 acres.