UNITED STATES SECURITIES AND EXCHANGE COMMISSION LITIGATION RELEASE NO. 16042 / January 25, 1999 SECURITIES AND EXCHANGE COMMISSION v. BRADLEY J. SIMMONS and AMERICAN ENERGY GROUP, LTD., Civil Action No. H-97-1384, USDC, SD/TX (Houston Division) The Securities and Exchange Commission ("Commission") announced that on January 15, 1999, the Honorable Vanessa D. Gilmore of the United States District Court for the Southern District of Texas entered a Final Judgment of Permanent Injunction and other Equitable Relief against American Energy Group, Ltd. ("American Energy" or "the company"), a publicly traded oil and gas company located in Simonton, Texas, and Bradley J. Simmons ("Simmons"), the company’s president. American Energy is a publicly-held company whose common stock is currently quoted on the National Association of Securities Dealers Over- The-Counter Bulletin Board. The Commission’s Complaint alleged that American Energy publicly issued press releases and filed reports with the Commission which contained false and misleading statements concerning American Energy’s financial condition and business prospects and failed to timely file with the Commission certain required periodic reports. More specifically, the Complaint alleges that American Energy issued fraudulent press releases regarding oil and gas prospects in Pakistan. As the result of the false and misleading information which was released to the public, the price of American Energy’s stock increased from about $.80 to over $8.00 a share during a five-week period in 1995, and remained at artificially high levels through 1995 and much of 1996. The Final Judgments permanently enjoin American and Energy and Simmons from engaging in future violations of the antifraud provisions contained in Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder, and the reporting provisions contained in Section 13(a) of the Exchange Act and Rules 12b-20, 13a-1, 13a-11 and 13a-13 thereunder. The judgments further require Simmons to pay a civil monetary penalty in the amount of $60,000. In addition, the final judgments require American Energy to establish and maintain, for a period of at least four years, a Disclosure Committee to supervise, monitor and oversee all public disclosure by the company. The Disclosure Committee will review and give written approval to all public releases by the company prior to its dissemination. This include shareholder letters, news releases, internet communications and public filings with the Commission and other securities regulatory agencies. In its review of each proposed release, American Energy’s Disclosure Committee will be required to consider both the accuracy and adequacy of the content in light of the nature and materiality of the information being released. Simmons a member of American Energy’s Disclosure Committee nor participate in the selection or appointment of any of its members. American Energy and Simmons consented to the Final Judgments without admitting or denying the allegations in the Commission’s Complaint.