NEW YORK (Commodity Online): Denver-based oil & gas exploration company, American Oil & Gas Inc (NYSE Amex: AEZ) today reported a net loss of USD 10.3 million for the fiscal ended December 31, 2009 against USD 24.2 million recorded for the previous year.

The net loss for 2009 includes a non-cash oil and gas properties impairment charge of USD 4.5 million. The net loss for 2008 includes a non-cash oil and gas properties impairment charge of USD 24.3 million, a non-cash goodwill impairment charge of USD 11.7 million and a gain on sale of oil and gas properties of USD 16.5 million.

Andrew Calerich, President of American Oil, commented, "With our existing cash balance and the proceeds we expect to receive from the sale of our Fetter and Krejci projects, we should be well capitalized to fund an ongoing drilling program in our Bakken and Three Forks focused Goliath project, where we control approximately 76,000 net acres.”

During 2009, American Oil sold 20,026 barrels of oil at an average price of USD 52.75 per barrel and sold 222,561 mcf (thousand cubic feet) of natural gas at an average price of USD 3.72 per mcf for total oil and natural gas revenues of USD 1.9 million.

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Comparing to the volumes sold in 2008, American Oil had sold 19,221 barrels of oil at an average price of USD 86.96 per barrel and sold 173,129 mcf of natural gas at an average price of USD 7.06 per mcf for total oil and natural gas revenues of USD 2.9 million.

In 2009, American used USD 8.9 million for investing activities, which primarily includes USD 12.1 million paid for acquisition, exploration and development of oil and gas properties, USD 2.6 million received from redemption of Auction Rate Preferred Securities at par and USD 0.7 million received from a third party as a participation fee for our Goliath project.

American generated USD 23.2 million in cash from investing activities in 2008 which included cash proceeds of USD 31.7 million from the sale of oil and gas properties, cash proceeds from sales and redemptions of short term investments of USD 12.2 million and cash invested in oil and gas properties and oil field equipment inventory of USD 20.7 million.

Meanwhile, in 2009, American received USD 30.0 million in cash from financing activities, of which USD 29.6 million was received, net of fees and expenses, from the sale of nine million shares of common stock at USD 3.50 per share and USD 330,000 was received from the exercise of employee stock options. In 2008, American received USD 57,000 in cash from financing activities resulting from the exercise of common stock warrants.

At December 31, 2009, American had working capital of USD 44.5 million which includes USD 43.6 million in cash and short term investments, total assets of USD 84.8 million, a long term asset retirement obligation of USD 437,000, no long term debt and stockholders' equity of USD 83.3 million.

There are currently 57,562,956 common shares outstanding. Subsequent to December 31, 2009, American signed a letter of intent to sell its ownership in its Fetter and Krejci projects, and expects to receive approximately $44 million in cash on or before March 31, 2010.

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