Hycarbex-American Energy, Inc. Releases Updated Analysis of Acid Treatment on Pakistan Well

Business Wire, Jan 18, 2006

WESTPORT, Conn. -- The American Energy Group, Ltd. (OTC.BB: AEGG) announced today that Hycarbex-American Energy, Inc. ("Hycarbex") has released updated interpretive analysis of its acidization of the Haseeb No. 1 Well drilled in the second quarter of 2005 on Hycarbex's Yasin Block (2768-7) in the Republic of Pakistan. The American Energy Group, Ltd. owns an 18% gross royalty in the well. In its October 27, 2005 news release, American Energy reported that post-treatment testing performed by Schlumberger Oilfield Services indicated an increase in the natural gas flow rate calculated at the time of the initial drill stem test from 7.3 MMcf per day to 10 MMcf per day. After further testing and analysis performed by Schlumberger for Hycarbex, Schlumberger concluded that the previous estimated flow rate of 10Mmcf per day could be potentially increased to 28MMcf per day if the existing production tubing in the well is replaced with higher diameter production tubing and if the wellhead pressure is maintained at approximately 1,000 psi.

Pierce Onthank, President and CEO of American Energy stated, "We are extremely pleased with the updated flow rate prediction for the Haseeb No. 1 well, as it supports our belief that the area holds exceptional opportunities for further exploration and development."

American Energy further announced today that it has completed a private placement of its securities resulting in gross proceeds of $135,000. The proceeds will be used for general corporate purposes. In the placement transaction, the Company sold 100,000 restricted Common shares for an aggregate $135,000, or $1.35 per share. The securities were offered and sold by the Company to accredited investors in reliance upon Section 506 of Regulation D of the Securities Act of 1933, as amended.

This news release contains forward-looking statements. 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. These statements are subject to uncertainties and risks including, but not limited to, economic conditions, the impact of competition and pricing, actual operating conditions and results, and domestic and foreign government regulation and approvals. All such forward-looking statements, whether written or oral, and whether made by, or on behalf of the Company are expressly qualified by the cautionary statements and any other cautionary statements which accompany the forward-looking statements. In addition, the Company disclaims any obligation to update forward-looking statements to reflect events or circumstances after the date hereof.