American Energy Announces Pakistan Plans On Track.

HOUSTON--(BUSINESS WIRE)--Oct. 27, 1999--

The American Energy Group, Ltd. (OTCBB:AMEL) announced today that its plans to drill an exploratory well early next year on its Jacobabad oil and gas concession in central Pakistan remain unchanged despite the October 12th change in governmental control. The company has been involved in exploration in the country for over four years with an investment of over 7 million dollars in seismic surveys and exploratory drilling.

Charles Valceschini, president of the company's international exploration subsidiary, Hycarbex-American Energy, Inc., recently conducted informal meetings in Islamabad with various officials of the Pakistan Ministry of Petroleum and Natural Resources. Upon completion of these meetings Valceschini stated: "We enjoy an excellent relationship with the Ministry, see promising exploration opportunities ahead here, and will continue to move forward with our near-term and long-term plans for exploration on our Jacobabad concession."

The company plans to spud its next exploration well in early 2000 and is currently in logistical and technical planning for this project. Hycarbex owns 95% of the working interest in the Jacobabad concession and the Pakistan Government owns a 5% working interest. The Pakistan Government has the option to increase its holdings to a 25% working interest in the event of commercial discovery.

New natural gas field discoveries have recently been made adjacent to the concession, and the company's management and technical teams are encouraged by these developments. Hycarbex has drilled three exploratory wells on its concession to date without achieving a commercial discovery, but has encountered natural gas shows in all three wells. Hycarbex has suspended operations on one well pending further testing, has plugged one well due to mechanical and downhole difficulties while drilling, and has plugged a second well due to contact with natural gas containing a high content of H2S and CO2. The company's technical team is evaluating the geological and geophysical data derived from these wells to optimize the selection of future drillsites on the approximate one million acres (fifteen hundred square miles) comprising the concession.

The American Energy Group, Ltd. is an independent oil and gas exploration, drilling, and production company based in Houston, Texas, involved in both domestic and international exploration projects.

Certain matters described in this report are forward-looking statements and are subject to risks and uncertainties that could cause actual results to differ materially from those projected