The American Energy Investment Group, Inc., a privately held company headquartered in Houston, Texas, was founded in 1980 and was later incorporated under the laws of the State of Texas to engage in the development of oil and natural gas fields in the United States, primarily in Texas, Louisiana and Mississippi. The company is debt-free, and is included in reviews conducted by Dun and Bradstreet. American Energy is an affiliate of the American Energy Reserve Consultants, Inc., also a privately held company which was founded in 1980 and was incorporated in the State of Texas. Both companies are 100% owned by Robert E. Doyle of Houston, Texas.

The American Energy Investment Group undertakes oil and gas technical, financial and management services for its own account and for its associates and partners who include individual, institutional and industry investors and developers. American Energy staff and associates consist of highly qualified professionals with extensive experience in oil and gas management operations. Our review committee for the purchase of oil and gas properties and development drilling programs includes the expertise of geologists, petroleum engineers, land representatives, legal personnel, regulatory, and investment strategists.

Domestic Operations   In 1980 American Energy formed its first partnership with Interocean Oil Company of New York to acquire, develop and operate oil and gas assets. American Energy initial operations centered on mature properties located onshore in the Texas Gulf Coast and West Texas regions. Our strategy for growth continues to be the acquisition and development of producing oil and gas properties as opposed to exploration. We emphasize improvements such as field extensions, deeper reservoir drilling, and shallower recompletions in order to reduce investment risk, increase both producing rates and remaining oil and gas reserves thereby increasing the profitability of the property.

American Energy partners have also been large end users of oil and natural gas. Continued operations with natural gas end users such as utility and cogeneration companies required that we expand our activities to include onshore Louisiana and Mississippi. Associates included Philadelphia Electric Company, Long Island Lighting, Monsanto Chemical Company and later Pacific Gas and Electric.

International Operations   American Energy undertook its first development project in 1991 in Western Siberia, Russia as an associate of the Intermaritime Company of Geneva, Switzerland. One area of initial activity consisted of designing, negotiating, and initiating the reworking and re-equipping of some 600 wells in the Samotlor Field of Western Siberia which was highly successful, resulting in an increase in production of about 55,200 barrels of new oil per day. We then undertook the design and initiation of a 196 well development drilling program in the Krapivinskoye Field of Western Siberia. Additional projects consisted of drilling horizontal recompletions in older wells in order to increase both oil rates and reserves. This was followed by additional development drilling programs in the Western Siberia and Timan Pechora Basins. In these programs our partners were refiners and their share of the produced oil was shipped to their plants in Western Europe.

All of our international activity continues to be focused in the Western Siberia and Timan Pechora Basins where over 80% of Russia reserves and production are located. Operations in Russia began with larger oil companies such as Nizhnevartovskneftegas (TNK-BP) and Tomskneftegaz (Yukos). We now work with smaller companies owned by larger oil firms or much smaller companies holding production licenses but having inadequate capital and equipment to undertake development drilling for which they are obligated under terms of the license. These companies include entities such as Kondpetroleum (TNK-BP), Udmurtneft (TNK-BP) and Komitek (LukOil).