SAN ANTONIO, Texas, June 19, 2003 (PRIMEZONE) -- American Energy Production Inc. (OTCBB:AMEP), announced today the Company has reached an agreement with a third party investor to buy a 10% interest in a Strawn Gas Well acquired in the Acquisition of certain oil and gas leases from Proco Operating Co., Inc in February 2003. The Strawn gas well will be re-completed and put into production when the gas contract is signed in the next few days.
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,cim/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.