SELL  American Oil & Gas Inc. AEZ -  last $3.85. Take profit. Suggested at $3.40 and would have held position except for offering. Intent to revisit.

American Oil & Gas Inc. (AMEX:AEZ – News) today announced that it has agreed to sell nine million shares of common stock to certain purchasers through a registered direct offering priced at $3.50 per share, resulting in gross proceeds of $31.5 million. C. K. Cooper & Company acted as lead placement agent on the transaction and Ladenburg Thalman & Co., Inc. acted as co-placement agent.

American intends to use the net proceeds from the transaction for capital expenditures in 2010 and general corporate purposes. The financing is expected to close on or about December 24, 2009, subject to the satisfaction of customary closing conditions.

The offering was conducted pursuant to American’s effective shelf registration statement previously filed with the Securities and Exchange Commission (the “SEC”). This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Any offer will be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective shelf registration statement. Copies of the final prospectus, including the prospectus supplement, can be obtained at the SEC’s website, www.sec.gov, or from C. K. Cooper & Company, 18300 Von Karman Avenue, Suite 700, Irvine, CA 92612.

American Oil & Gas Inc. is an independent oil and natural gas company engaged in exploration, development and production of hydrocarbon reserves primarily in the Rocky Mountain region. Addi