Additional Indicia of Yasin Concession Potential:

In addition to the gas shows which occurred during the drilling of the original seven wells, including the American Energy Jacobabad wells, and the critical data generated by investment of over thirty million dollars in drilling and technical analysis, American Energy’s management has obtained other credible indicia of substantial gas reserves within the current Yasin Block acreage. These sources have indicated at least fifteen (15) areas to date which are recommended for drilling, and include the following:

Martin Petroleum and Associates, a recognized engineering firm specializing in technical and economic evaluation of oil and gas properties with considerable experience in Pakistan evaluations, conducted an evaluation of the Jacobabad concession in 1998. Martin Engineering assigned gross Probable (unrisked) gas reserves of 5.2 TCF (trillion cubic feet) and an additional 2.2 TCF of Possible reserves to the structure encompassing a portion of the concession. These figures were estimates based upon geologic analysis and ultimately must be verified by further scientific data and drilling.

Neighboring wells drilled by other companies near concession acreage have become successful producers of gas, providing further evidence that commercial discoveries can be drilled on the Yasin concession itself. Block 22 directly adjacent and east of the Yasin Block has had three commercial discoveries: the Hamza X-1 well in 1998 tested gas at 8.0 MMCFD (million cubic feet per day), the Hasan X-1 tested 13.4 MMSCFD from a separate structure, and the Sadiq X-1 tested 12.4 MMSCFD. Finally, the Hassan #1 well to the southeast was completed as a producing gas well in the Sui Main Limestone formation in December, 2000. During calendar 2004, the Hassan No. 1 well produced an average of 14 million cubic feet of gas per day. The operator of the Hasssan No. 1 Well recently commenced the Hassan No. 2 Well less than one (1) mile from the Hassan No. 1 Well in January of 2005.