Delayed stock price
|Sui Main Limestone
|Total Gas in Place BSCF
|Recoverable Gas BSCF
Hycarbex previously announced public advertisement for construction bidding on its planned surface treatment facility for the Haseeb #1 gas expected to be sold into the Sui Southern Pipeline. Hycarbex is prepared to award the construction contract to the successful bidder but approval of the contract and the proposed construction is required from the Ministry of Petroleum and Natural Resources. The results of the February 18, 2008 general elections have resulted in changes and anticipated changes in key personnel within the Ministry, including the appointment of a permanent Minister to oversee the agency. The delays in the appointment of the permanent Minister have caused corresponding delays in the various approvals typically awarded by the Ministry, including those needed by Hycarbex to complete the construction. Hycarbex anticipates that the Ministry positions will be filled soon based upon the country’s large current energy consumption rates and the substantial number of important energy producing projects pending before the Ministry.
Commenting on the reserve study, Pierce Onthank, President and CEO of American Energy stated: “We are very pleased that the recently released report contains engineered recoverable reserve estimates which are actually higher than the preliminary reserve estimates originally made by the Pakistan Government after the completion of the Haseeb #1 Well. We believe this will enhance the likelihood that multiple wells will be drilled on the structure by Hycarbex.”
The United States Securities and Exchange Commission (“SEC”) permits oil and gas companies to disclose in their filings with the SEC only “proved” reserves that the company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. Disclosure in SEC filings of other categories of reserves is prohibited. American Energy uses in this release the terms “probable” reserves and “possible” reserves. Probable reserves are unproved reserves which are more likely than not to be recoverable. Possible reserves are unproved reserves which are less likely to be recoverable than probable reserves. Estimates of probable and possible reserves which potentially may be recoverable through additional drilling or recovery techniques are by their nature more uncertain than estimates of proved reserves and thus are subject to substantially greater risk of not being realized by the exploration company.
This news release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events, or performance and underlying assumptions and other statements, including potential production rates and potential reserves, which estimates are unproven and not based upon actual production data or historical facts. These statements are subject to uncertainties and risks including, but not limited to, economic conditions, the impact of competition and pricing, actual operating conditions, the outcome of future drilling activity, estimates of production decline rates for existing wells and commodity price fluctuations, and domestic and foreign government regulation and approvals. All such forward-looking statements, whether written or oral, and whether made by, or on behalf of the Company are expressly qualified by the cautionary statements and any other cautionary statements which accompany the forward-looking statements. In addition, the Company disclaims any obligation to update forward-looking statements to reflect events or circumstances after the date hereof.
For further information contact Pierce Onthank, President and CEO at (203) 222-7315 or [email protected].