American Energy Development Corp. has provided a report on production from the company's first well, Brown 2-12, located on the 1,343 acre Dansville Prospect in Southern Lower Michigan. For the month of April, 898 barrels of crude oil have already been sold at a premium to WTI spot prices (currently $103). The well has continued to produce with zero water cut, and it is planned that a further load of 300 barrels of crude will be sold imminently. The Brown-12 reef structure originally verified its potential in 1972 when the first well reported an initial production (IP) rate of 583 barrels of oil per day. AED's analysis of the data indicates that the well was drilled on the flank of a reef formation into a low porosity zone, which it believes hampered production rates and the amount of barrels recoverable. During the drilling stage of the Brown 2-12, it was expected that 50-70ft of reef structure was to be encountered, however, analysis of the well data indicates a 201 feet reef structure may have been encountered, significantly greater than expected. With data from seismic analysis, drilling and production, AED is awaiting the completion of an independent technical study on the well and reef structure. The study will form the basis for the development of the reef, which believe will increase production further and maximize the recoverable reserves. Using analogue data from neighboring reef structures along with own data from the structure and input from the operator, believe that there could be up to 6-8 million barrels of oil in place in the reef structure.