SAN ANTONIO, Texas, June 25, 2002 (PRIMEZONE) -- American Energy Partners Inc. (OTCBB:AMEP) announces the Company has placed in escrow with the Corporation Lawyer the acquisition agreement with Proco Operating Co. Inc., a Texas oil and gas operator. This escrow agreement is the final stage of negotiation for American Energy Partners Inc. to acquire all of Proco Operating Co. Inc.'s oil and gas leases and related oilfield equipment. These oil and gas leases cover 3,000 plus acres and have a long history of production from several producing horizons. The Marble Falls formation on this lease has proven recoverable oil reserves of 2,4000,000 barrels of oil and 3 billion cubic feet of natural gas. Proco Operating Co. Inc. will become a wholly owned subsidiary of American Energy Partners Inc.
Proco Operating Co. Inc. is owned by Johnnie Lee Bitters, brother of current VP of Operations of American Energy Partners Inc., Charles Bitters. Charles Bitters does not have any ownership of Proco Operating Co. Inc., and makes no business decisions for the company. The final acquisition price of these properties will be determined by an Advisory Energy Acquisition Board appointed by corporate attorneys and accountants to keep this transaction as an arms-length acquisition. The Advisory Energy Acquisition Board will determine the final acquisition price based on the reservoir engineering report to be submitted by Jerry Worsham of Mineral Wells, Texas.
The oil and gas lease, which is the subject of the acquisition agreement, has a blanket Barnett Shale formation about 150 feet thick. One of the first projects American Energy Partners Inc. will undertake will be to fracture stimulate one of the existing oil or gas wells in the Barnett Shale formation. The Company's success in a re-completion of an existing well in the Barnett Shale formation will add substantial natural gas reserves to the American Energy Partners Inc. assets.
The Board of Directors of American Energy Partners Inc., on June 19, 2002, declared a (one-for-five) stock dividend on its common stock, having the effect of a 20% stock dividend. Stockholders of record on August 16, 2002 will be entitled to one additional share of 144 restricted stock, for each five shares of the company's stock held at that time.
Statements contained in this release, which are not historical facts, may be considered "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations and the current economic environment. We caution the reader that such forward-looking statements are not guarantees of the future performance. Unknown risk, uncertainties as well as other uncontrollable or unknown factors could cause actual results to materially differ from the result, performance, or expectations exposed or implied by such forward-looking statements.