American Energy Development Corp. has finalized the agreement to acquire oil and gas rights to approximately 4,000 additional acres in Northern Michigan, known as the White-tail Prospect. The White-tail Prospect considerably expands AED's presence within the state's prolific Niagaran reef proven reef play, and brings the company's total Michigan acreage to more than 5,300 acres. Reefs in Northern Michigan are typically 50-400 acres in size, 200-700 ft in depth, and located within the oil bearing 12 -15 mile wide reef belt. There are over 110 oil fields in the area with reserves larger than 1 million barrels, with the average size of these fields being approximately 2.4 million barrels recoverable. The large reefs drilled in the area are the Chester 18A field, with 14 million barrels of recoverable oil, drilled by Royal Dutch Shell, and the Grant 13 field, which has approximately 47 billion cubic feet of recoverable natural gas. Data from the initial seismic survey on the acreage has identified 5 separate reef prospects. AED plans on initiating the new high 3-D resolution seismic survey to clearly define prospective well sites. The company and its partners will define future well sites using the latest geological, geophysical, and environmental technology to minimize risk for the subsequent drilling program.