BUSINESS
Domestic
American Energy
develops domestic onshore oil and natural gas
properties on behalf of end users such as
refiners, utility companies and cogeneration
companies and itself. Our objective is to reduce
the cost of supply and to provide long-term
sources of oil and gas for the end user through
the selective development and purchase of
properties meeting specific guidelines. We
undertake the necessary geological, engineering
and economic studies to determine the value of
the properties; all final technical studies are
subsequently confirmed by outside, third party
independent consultants. We also introduce
financing for the purchase of properties, as
required. When it is possible to do so, we
further increase the value of the properties by
both accelerating oil and gas producing rates
and increasing the volume of gas reserves
through well workovers and additional drilling.
Our areas of activity are generally confined to
those major producing onshore regions where oil
and natural gas pipeline systems service the end
user.
International
American Energy develops horizontal drilling and
recompletion programs primarily for Russian oil
companies that own licenses for certain oil
areas but do not have the capital, source of
financing or sufficient equipment to develop the
reservoirs. Our partners in these programs are
primarily Western refiners and other oil
companies. We undertake the necessary
geological, engineering, economic and financing
studies to determine the development feasibility
of a potential program. All final technical
studies are subsequently confirmed by outside,
third party independent Western consultants.
American Energy’s programs are generally funded
under the protection of U.S. Government
financial institutions where most of the
required development capital is provided under
non-recourse, guaranteed financing and the
remainder of the investment is protected by U.S.
Government-backed insurance. In certain projects
the Western company partner of American Energy
may operate the drilling and production phases
of the program under a joint venture contract
with the Russian oil company and American
Energy. In such cases, the Western company
partner, which may be a Western refiner or other
oil companies, retains the majority ownership in
the program. |