Exhibit 99.1


 American Energy Announces Institutional Placement of Common Stock and Warrants

    WESTPORT, Conn.--(BUSINESS WIRE)--May 11, 2006--The American
Energy Group, Ltd. (OTCBB: AEGG) announced today that it has completed
the sale of $2.90 million of its common stock and warrants in a
private offering of up to $3.95 million dated May 8, 2006. The
consummated sales consist of the placement of 1,705,882 common shares
at a price of $1.70 per share to a group of U.S. based institutional
investors. Each investor also received one warrant for each two common
shares purchased in the offering. The 852,941 warrants issued to the
investors have a five-year term and provide for an exercise price of
$1.70 per share. The warrants may be redeemed at the option of the
Company if the closing bid price for the Company's common stock equals
or exceeds $2.50 per share for twenty consecutive trading days after
registration of the underlying common stock for resale. The Company
intends to use the offering proceeds to acquire additional royalty
interests in a new oil and gas concession within Pakistan and for
general corporate purposes.
    This news release does not constitute an offer to sell or the
solicitation of an offer to buy any securities. The common shares and
warrants sold in the May 8, 2006 offering have not been registered
under the Securities Act of 1933, as amended (the "Securities Act"),
or any state securities laws and may not be offered or sold in the
United States absent registration or an applicable exemption from
registration requirements under the Securities Act.
    This news release contains forward-looking statements.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events, or performance and
underlying assumptions and other statements, including opinions of
third parties regarding subsurface geologic conditions, which
estimates, assumptions or opinions are unproven. These statements are
subject to uncertainties and risks including, but not limited to,
economic conditions, the impact of competition and pricing, actual
operating conditions and results, and domestic and foreign government
regulation and approvals. All such forward-looking statements, whether
written or oral, and whether made by, or on behalf of the Company are
expressly qualified by the cautionary statements and any other
cautionary statements which accompany the forward-looking statements.
In addition, the Company disclaims any obligation to update
forward-looking statements to reflect events or circumstances after
the date hereof.

    CONTACT: American Energy Group, Ltd.
             Pierce Onthank, 203-222-7315
             mail@aegg.net