SAN ANTONIO, Texas, June 11, 2003 (PRIMEZONE) -- American Energy Production Inc. (OTCBB:AMEP) announced today the Company has reached an Operating agreement with Proco Operating Co. Inc. Proco Operating Co Inc. will continue to operate the Kirk Field Marble Field Unit that AMEP acquired from Proco on February 20, 2003.
Proco Operating Co. Inc. has been approved for a $50,000 performance bond required by the Texas Railroad Commission to operate oil and gas wells in the State of Texas. This performance bond allows Proco Operating to operate from 10 to 99 oil or gas wells. With the performance bond in place, AMEP can continue with the first project to rework two Marble Falls Unit wells that have potential for increased production of oil and gas with new stimulation procedures and a third well will be completed in the Duffer formation.
American Energy Production Inc. oil and gas leases consist of 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 developed non-producing reserves of 2,232,522 barrels of oil and 2.985 billion cubic feet of natural gas. The gross Future Net Revenue of the oil and natural gas reserves is $68,516,680. With deductions and a discounted FNI (Future Net Income) value of 10%, this equates to $33,011,202 recoverable reserves, as documented in the March 31, 2003 10QSB. A copy of the complete Petroleum Engineers report can be found at: http://www.americanenergyproduction.com/EngineersReport.html
The Marble Falls Unit oil and gas lease, which is the subject of the acquisition, has a blanket Barnett shale formation about 150 feet thick. As soon as oil and gas income is realized from the reworking of the three-well project, American Energy Production Inc. will undertake a fracture stimulation of an existing oil or gas well that has the Barnett Shale formation. The Company's fracture stimulation in the Barnett Shale formation, if successful, will add substantial natural gas reserves to the American Energy Production Inc. assets.
Charles Bitters, President of American Energy Production Inc, stated he is satisfied with the progress of the Company to acquire oil and gas leases and put the projects into an income-producing state. The Company will continue to keep investors informed of all Company activities.
Statements contained in this release, which are not historical facts, may be considered "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 unknown factors could cause actual results to materially differ from the result, performance, or expectations exposed or implied by such forward-looking statements.
For more information contact JGD INVESTMENT SERVICES, John DeLisa 888-910-2323