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Yasin Royalty Interest
American Energy Group holds an 18% overriding royalty interest on oil and gas production from all acreage in Yasin Block No. 2768-7, Zone III, Sindh Province, Pakistan. The royalty assigned to American Energy Group is a percentage ownership in gross production revenues, free of the costs of production, exploration and development paid by the operator and other working interest owners.
The block is operated by Hycarbex American Energy Inc, well established independent and privately held Pakistan operator. Other joint venture partners are Hypak Asia Pte Ltd and Government Holdings Pte Ltd.
The block is located in the districts of Jacobabad and Shikarpur. The total area of the block is 1,745 square kilometers after relinquishment of 20% of the Block area at the first license renewal period. The geological setting of the block is in the Middle Indus basin, a major hydrocarbon producing area of Pakistan. The Block is primarily a gas producing area with its primary target reservoir being the Sui Main limestone.Sui Main limestone is present throughout the block with gross thickness in the range of about 150-230 meters.
Proven Gas Reserves: 217 BCF
Hycarbex-American Energy Inc has invested in excess of US$25 million in generating 675 kilometers of high resolution seismic data and drilled 6 exploratory wells, and has made a discovery of 217 BCF of proven gas in place in the Haseeb field. Hycarbex-American Energy Inc engaged Energy Processing Services Pte Ltd, an affiliate of Specialty Process Equipment Corporation (www.spec-pro.com), a worldwide specialist in design, engineering and custom fabrication of gas processing facilities based in Houston, Texas to construct the production gas treatment plant. The Haseeb field is connected to the main Sui-Karachi gas pipeline and currently produces  mmcfd of natural gas for sale to Sui Southern Gas Company, generating for American Energy Group quarterly revenues and earnings per share of approximately US$[X] and US$[X]. Hycarbex-American Energy expect to increase the production rate of the Hasseb gas field to  mmcfd by year-end 2010.
Prospective Gas Reserves: 350-800 BCF
Using existing seismic and well data, Hycarbex-American Energy Inc has developed a depth map for the Sui Main Limestone, the primary reservoir level over the entire Yasin Block. The map has identified attractive prospective leads towards southeastern part of the block. The horizontal area of a larger lead is about 100 square kilometers, whereas its vertical closure is around 15 meters. Hycarbex-American Energy, Inc. estimated that 350 BCF of gas reserves may be present in this larger lead. The Hycarbex-American Energy Inc interpretation is that this larger lead and emerging southern lead form one structure. The horizontal area of such structure is about 215 square kilometers, whereas vertical closure is around 40 meters. It has been estimated that 800 BCF of gas reserves may be present in this structure. Hycarbex-American Energy Inc plans to conduct additional exploratory drilling on these mapping units in 2010.