American Energy Development, an independent energy company focused on the development of acreage in established oil and gas basins, today announced it has acquired as a wholly owned subsidiary Reservoir Resources Ltd. in a transaction valued at $12.5 million. Per the agreement, AED will issue 12.5 million shares of common stock for the purchase.
Reservoir Resources owns the Windsor Prospect License located in the UK’s Weald Basin. AED received assurance from the Department of Energy and Climate Control (DECC) that the department has no intention of revoking the license or seeking any further changes of control of the license holder following its acquisition by AED.
The Windsor Prospect, a 24,700-acre onshore exploration prospect in Windsor, UK, is in an oil producing area and is in close proximity to Europe’s largest onshore oil and gas field, the 500-million barrel Wytch Farm oil field.
According to an independent geological report, the Windsor Prospect acreage could have an estimated prospective resource potential of up to 615 million barrels of oil in place.
AED has already launched the initial phase of outlining a development program for the project, and said it plans to commence the first well in the second half of 2012. The company will 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. AED detailed how the potential reserves in the prospect are complementary to the company’s broader operational mission.
“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. We believe our capital investment in Windsor fits perfectly with AED’s overall strategy, to develop oil and gas projects in the U.S. as well as in politically friendly, secure nations, like the United Kingdom,” Herold Ribsskog, president of AED, stated in the press release.
For more information visit www.aed-corp.com
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