American Standard Energy Corp Provides Operational Update on Eagle Ford Drilling Program and Acquisition Audit and Pro Forma Details

SCOTTSDALE, Ariz., May 21, 2012 /PRNewswire/ -- American Standard Energy Corp ("American Standard" or the "Company") (OTCBB: ASEN), a domestic oil and gas exploration and production company, today provided an operational update on its Eagle Ford drilling program.

As previously announced, American Standard currently holds a ten percent working interest across a 12,000 gross acre Area of Mutual Interest ("AMI") operated by Cheyenne Petroleum Company ("Cheyenne").  The project, the Auld Shipman development project, recently began use of new production facilities, allowing previously drilled wells to be added to sales.

As of May 18, 2012 American Standard has participated in 2.6 net wells (26 gross wells) as a result of the Cheyenne AMI. However production was delayed due to limited infrastructure and pipeline capacity as well as a lack of treatment facilities for sour gas discovered during initial production. As of March 31, improved delivery capacity and treatment facilities provided the infrastructure necessary to begin continuous, initial production.

Cheyenne accelerated the pace of completion and delivery of wells to sales during April and early May.  As of May 18, 1.1 net wells (11 gross) were producing from the Eagle Ford and Pearsall formations.  As a result, the Auld Shipman project is providing approximately 250 barrels (oil equivalent) of daily production net to American Standard.  Production from existing wells remains restricted as Cheyenne completes and tests the new infrastructure. The Company expects Cheyenne to bring wells to full production levels in the coming weeks.

As noted in the table below, the project has additional wells in various stages of drilling and completion which should accelerate production growth in the coming months.

Given Cheyenne's current development plans in the Auld Shipman project, American Standard anticipates 3.5 net wells (35 gross) to be producing by year-end 2012 which would hold the entire AMI leasehold by production. Moreover, assuming industry convention 65-acre spacing in the project, in-fill drilling would provide an additional 150-plus location for future exploitation.

"Continuous and growing production at Auld Shipman is a major milestone for American Standard," said Scott Feldhacker, Chief Executive Officer of American Standard Energy. "Our investment commitment to this project is now providing a solid return to our stakeholders and will grow as final testing of the new infrastructure is completed. Moreover, as development in the project continues, the acceleration in production should be a meaningful contributor to Company cash flows in the balance of 2012 and beyond."

Completion of Acquisition Accounting Review and Audited Financials

As previously announced, American Standard acquired approximately 72,300 net acres in the Permian Basin, the Williston Basin and in the Eagle Ford, Eagle Bine and Niobrara unconventional formations on March 5, 2012. The acquisition also included 235 gross 164.9 net producing wells (235 gross), primarily in the Permian Basin.   On May 18, 2012 American Standard filed the required audited statements of revenues and direct operating expenses of those producing assets for the years ended December 31, 2010 and 2011 and the requisite unaudited pro forma statements. 

"The completion of our acquisition accounting is the final step in fully integrating these key assets into the American Standard portfolio," added Feldhacker. "In addition to further demonstrating the positive impact this acquisition will have on our operating and financial position, this accounting clears the way for the Company to complete other actions of strategic importance including a strategic prioritization of its asset portfolio and opportunities to leverage key assets to create enhanced value for our stakeholders."

About American Standard Energy

American Standard Energy Corp is an oil and gas exploration and production company based in Scottsdale, Arizona. The Company's oil and gas asset base is comprised of operated acreage in the Permian Basin and non-operated acreage in the Williston Basin and South Texas Eagle Ford resource prospects. The Company currently controls approximately 112,000 combined net acres in the Permian Basin, Williston Basin, Eagle Ford, Niobrara, Eagle Bine and Gulf Coast.

For additional information on American Standard Energy Corp visit our website at: www.asenergycorp.com

Forward Looking Statements

Except for the historical information contained herein, this press release contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Securities Act of 1933, as amended (the "Securities Act") and the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical facts included in this report regarding our financial position, business strategy, plans and objectives of management for future operations, industry conditions, and indebtedness covenant compliance are forward-looking statements. When used in this report, forward-looking statements are generally accompanied by terms or phrases such as "estimate," "project," "predict," "believe," "expect," "anticipate," "target," "plan," "intend," "seek," "goal," "will," "should," "may" "continue," "opportunities" or other words and similar expressions that convey the uncertainty of future events or outcomes. Items contemplating or making assumptions about, actual or potential future sales, market size, collaborations, and trends or operating results also constitute such forward-looking statements. Please refer to the documents American Standard files, from time to time, with the Securities and Exchange Commission; specifically, American Standard's most recent Form 10-K and the cautionary statements and risk factors contained therein. Those documents contain and identify important risk factors that could cause the actual results to differ materially from those contained in or implied by these forward-looking statements.

Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond our Company's control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following: oil and gas prices, our ability to raise capital, general economic or industry conditions nationally and/or in the communities in which our Company conducts business, changes in the interest rate environment, legislation or regulatory requirements, conditions of the securities markets, changes in accounting principles, policies or guidelines, financial or political instability, acts of war or terrorism, other economic, competitive, governmental, regulatory and technical factors affecting our Company's operations, products, services and prices.

We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control.

CONTACT:

American Standard Energy Corp.
(480) 371-1929

SOURCE American Standard Energy Corp