AMERICAN OIL & GAS INC. ANNOUNCES COLOMBIAN FARM-IN AGREEMENT

By , in PR on .
HOUSTON, TEXAS – 10-09-2017 (Press Release Jet) — American Oil & Gas Inc. (OTC Markets: AOIX), is pleased to announce that it has agreed to the terms of a Farm-in Agreement on the Sinu-9 block located in the Lower Magdalena Valley Basin in Colombia.

The Company has entered into a Letter of Intent with PentaNova Energy Corp. to Farm-in on PentaNova´s interest held in the Sinu-9 block (313,639 gross acres), located in the Cordoba Province in the Lower Magdalena Valley Basin of Colombia. To complete the agreement, the Company will Farm-in for 50% of the PentaNova´s 80% beneficial working interest, by way of replacing the guarantee required by the ANH license, as well as funding 100% of the Phase I minimum exploration work program under the ANH contract, over the next 3 years. PentaNova shall reimburse 50% of the funds invested by AOG in the Phase I activities from 70% of PentaNova´s net production. Further capital commitments will be assumed proportionally by the partners. The remaining working interest on the block is held 15% by Desarrolladora Oleum and 5% by Clean Energy.

The Sinu-9 block is located adjacent to Canacol’s Esperanza block and approximately 14km from the Northern gas trunk line which has available capacity.  The Company believes the block contains substantial gas reserves based on initial wells drilled, and the available seismic data providing evidence of commercial natural gas accumulations.  The Company is evaluating, in conjunction with PentaNova, an initial workover of a discovery well drilled in 1992, which tested over 10MMscf/d.  Work is expected to begin in the first quarter of next year.

About American Oil & Gas Inc.:

American Oil & Gas Inc. is an exploration and production company with headquarters in Houston, Texas.  Our focus is to acquire and develop oil and gas assets in the Andean region.  The Company is led by a top-tier management team with a history of building and operating world-class assets.

About PentaNova Energy Corp.

PentaNova Energy Corp. is a publicly traded E&P company focused on proven oil & gas plays in Latin America. The Company holds a large diversified portfolio of unexploited assets in Colombia and Argentina where it will leverage its amplitude of technical expertise and proven track record building companies and creating value.

For additional information, please contact:

Ronald Pantin

Chief Executive Officer, [email protected]

         Or

Shane Reeves

President & Director, [email protected]

Phone: +1.832.510.8950

Media Contacts:

Company Name: American Oil & Gas Inc
Full Name: Shane Reeves
Phone: 832-510-8950
Email Address: Send Email
Website: www.aog.energy

For the original news story, please visit https://pressreleasejet.com/news/american-oil-gas-inc-announces-colombian-farm-in-agreement.html.

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Brad Bennett

Brad Bennett

Brad grew up in a small town in northern Iowa. He studied chemistry in college, graduated, and married his wife one month later. They were then blessed with two baby boys within the first four years of marriage. Having babies gave their family a desire to return to the old paths – to nourish their family with traditional, homegrown foods; rid their home of toxic chemicals and petroleum products; and give their boys a chance to know a simple, sustainable way of life. They are currently building a homestead from scratch on two little acres in central Texas. There’s a lot to be done to become somewhat self-sufficient, but they are debt-free and get to spend their days living this simple, good life together with their five young children.
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