News Column

The American Energy Group, Ltd. Announces Loan Transaction

February 28, 2014



By a News Reporter-Staff News Editor at Energy Weekly News -- The American Energy Group, Ltd. (AEGG) announced that it has entered into a loan transaction with an institutional investor for the borrowing of $350,000. The funds will be used solely for the required cost advance required by the International Chamber of Commerce (ICC) tribunal in connection with the scheduled February 17, 2014 arbitration final hearing in which the Company's claims against Hycarbex American Energy, Inc., Hycarbex Asia Pte. Ltd. and Hydro Tur (Energy) Ltd. will be adjudicated. The terms of the loan are an eighteen month term, an interest rate of 5.0% per annum and debt reduction payments prior to maturity only out of 25% of any proceeds of hydrocarbon production received by the Company, any ICC refunds, or any lump sum settlement payments from any participant. The loan is secured by a first lien on the Company's non-producing Texas oil and gas interests. The loan also includes the issuance to the lender of 2.33 million warrants to purchase the Company's common stock at $0.15 per share for twenty four months.

This news release contains forward-looking statements, including estimated time lines for future events. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events, or performance and underlying assumptions and other statements, including potential production rates and potential reserves, which estimates are unproven and not based upon actual production data or historical facts. Forward-looking statements are subject to uncertainties and risks including, but not limited to, economic conditions, drilling risks and actual operating conditions and results, deviation in costs of critical equipment and services, deviation in production decline rates, the impact of competition and commodity pricing, and domestic and foreign governmental regulation and approvals.

Keywords for this news article include: Legal Issues, The American Energy Group Ltd.

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Source: Energy Weekly News


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