The American Energy Group, Ltd. announced that it has entered into a loan transaction with an institutional investor for the borrowing of $75,000. The proceeds of the sale and the loan will be used for general and administrative operating capital and legal expenses. The terms of the loan include a maturity date of August 5, 2015, an interest rate of 5.0% per annum and debt reduction payments prior to maturity only out of 25% of any proceeds of hydrocarbon production received by the company, any ICC refunds, or any lump sum settlement payments from any participant.

The loan is secured by a lien on the company's non-producing Texas oil and gas interests. The loan also includes the issuance to the lender of 500,000 warrants to purchase the company's common stock at $0.15 per share until February 5, 2016.