Delayed stock price
WESTPORT, Conn.--(BUSINESS WIRE)--The American Energy Group, Ltd. (OTC.BB: AEGG - News) announced today that Hycarbex-American Energy, Inc. (“Hycarbex”) has updated its scheduling for the construction of its surface treatment facility for its Haseeb #1 Well and for its new exploratory well on Yasin Block (2768-7). The American Energy Group, Ltd. owns an 18% gross royalty in the Yasin Block (2768-7) Concession, including the Haseeb # 1 Well. The working interest is co-owned by Hycarbex (85%), Hypak Asia (Pvt) Ltd. (10%) and Government Holdings (Pvt) Limited (5%).
Hycarbex previously announced the bidding for the construction of the surface treatment facility for the Haseeb Well # 1 and the delays in the award of the contract due to governmental delays in the appointment of a permanent Minister for the Ministry of Petroleum and Natural Resources. While the permanent Minister is yet to be appointed, the Pakistan government recently mandated that the Ministry process the approval requests pending before the Ministry. As a result of this government action, Hycarbex obtained the required approval from the Ministry and then engaged Energy Processing Services (Pvt) Limited (“EPS”) to construct the surface treatment facility on a rental/gas processing fee basis. EPS is an affiliated company of Specialty Process Equipment Corporation (“SPEC”), a worldwide specialist in design, engineering and custom fabrication of processing facilities based in Houston, Texas, with manufacturing facilities in Houston, Texas, United Arab Emirates and Pakistan [website: www.spec-pro.com]. EPS has completed the design work on the Haseeb #1 surface treatment facility and several items of equipment have been procured. EPS will continue its equipment procurement and fabrication in the SPEC facility located in Lahore, Pakistan and is expected to complete the fabrication and assembly during the first quarter of calendar 2009. Upon completion of the surface treatment facility, the Haseeb Well # 1 will be connected to the pipeline and begin the sale of gas to Sui Southern Pipeline Company.
Hycarbex also previously announced that drilling on a new exploratory well named “Yasin Exploratory Well # 1” was scheduled during the month of October. Hycarbex’s drilling contractor experienced mobilization and commencement delays related to heavy rains in the flood plain area where the well is to be drilled. These conditions resulted in flooding and the need for stabilization of the drillsite surface before placement of the rig. The drilling contractor has completed this preparatory work and mobilized the drilling rig to the selected drill site. The drilling contractor is currently assembling the rig and associated equipment and spudding of the Yasin Exploratory Well #1 is expected within the next week.
For further information contact Pierce Onthank, President and CEO at (203) 222-7315 or [email protected].