American Energy Development Corp. to provide an update on its drilling program in Southern Michigan. With the recent declaration of the frost laws in the Ingham County effective from February 27, 2012 commencement of drilling of the second planned well on the 1,343 acres Dansville Prospect has been put on hold due to weight restrictions placed on the roads preventing the mobilization of the drilling rig and equipment to the second well drill-site. Frost Laws in Michigan are designed to help preserve and protect the road systems throughout the State and are applied during the period of thawing and refreezing of the road surface during springtime weather, historically in March and April. With spring weight restrictions in effect, axle loadings are reduced by 25% on rigid-based roads and 35% on flexible-based roads. Speed limits on frost restricted routes are reduced to 35 mph for all vehicles over 10,000 lbs. gross weight. The second planned well on the 1,343 acres Dansville Prospect, Cremer 1-1, has been surveyed, bonded with AED having received the necessary permits from the State of Michigan to allow for drilling to commence. The Cremer 1-1 has been defined from AED's 12,300 acre database of high resolution 3-D seismic data with the results showing detailed isochron maps outlining the crest of the reef. The amplitudes indicate good porosity in the northern part of the reef and careful reviews by the geoscientists involved indicate that the potential size of this reef may be significant. Upon lifting of the frost laws, AED plans to resume its drilling program on the Dansville prospect commencing firstly with the Cremer 1-1 well. For AED's first well, Brown 2-12, drilled on the Brown-12 reef structure, AED is currently awaiting the conclusion of a technical information report which is being prepared by an independent consultant to evaluate original oil in place by material balance, current fluid saturations, movable oil based on saturations, and tie back to volumetrics using the reef outline from the high resolution seismic survey. Using analogue data from neighboring reef structures along with production data from the Brown-12 reef structure, indications are that there may be 6-8 million barrels of estimated oil in place in the Brown-12 reef structure. Other reefs in the county such as the Aurelius and Onondaga 10 contain over 7.5 million and 18 million barrels of oil in place respectively. During the Frost Law period, AED has aggressively pushed forward the search for additional high quality prospects in Michigan and recently entered into an agreement to add the White-tail prospect on approximately 4,200 acres in Northern Michigan. From the initial seismic survey, five reefs have been identified on the acreage with a new high resolution 3D seismic survey to further define each reef on the White-tail prospect and to mitigate risk for the drilling program. According to the USGS report on the basin, the recoverable reserves are in excess of 1.8 billion barrels of oil and 17 trillion cubic feet of natural gas. There are a total of 4,212 wells that have reported production from the Niagaran reefs in Michigan. These reefs have produced a total of 472 million barrels oil and 2.8 trillion cubic feet of natural gas.