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