American Oil & Gas Inc., Denver, (Amex: AEZ) reported a net loss of $24.2 million in 2008, compared to a net loss of $3.8 million in 2007.

The loss includes a non-cash oil and gas properties impairment charge of $24.3 million, a non-cash goodwill impairment charge of $11.7 million and a gain on sale of oil and gas properties of $16.5 million.

In 2008, American used $1.6 million of cash for operating activities, up from $1.2 million in 2007.

At year-end 2008, American had working capital of $25.6 million, total assets of $67.4 million, a long term asset retirement obligation of $431,000, no long term debt and stockholders’ equity of $62.6 million.

American president Andrew Calerich says, “We begin 2009 with over $25 million in working capital, no long term debt and a large project inventory. We believe we are well positioned to continue through these turbulent economic times with the flexibility to pursue strategic opportunities should they arise. We expect to continue with our operational plans within our focus areas while prudently managing our capital. Our 2009 base case capital expenditures program provides for an approximate $15 million budget that can be modified up or down depending on operational results and commodity prices.”