SAN ANTONIO, Texas, June 25, 2003 (PRIMEZONE) -- American Energy Production Inc. (OTCBB:AMEP) announced today negotiations with Production Resources Inc., a Texas oil and gas producer, have culminated in the signing of a Letter of Intent for the acquisition of substantially all of the oil and gas leases and field equipment for Cash and Restricted stock in American Energy Production Inc.
Production Resources Inc. oil and gas leases cover more than 5,000 acres and has a long history of oil production through three producing horizons, which have an estimated 62,000,000 barrels of proven recoverable oil reserves. The price per barrel of oil today, 6/24/03, is $29 per barrel. Presently, Production Resources Inc. has 192 fully equipped oil wells capable of producing several hundred thousand dollars per month with a new technology and stimulation procedures that will be incorporated into oil operations. The oil field will be able to produce to its maximum potential using the Company's newly acquired technology, which the Company is not at liberty to discuss in detail at this time. American Energy Production Inc. petroleum engineers estimate oil production has the potential to increase dramatically.
About American Energy Production, Inc.
American Energy Production, Inc. is an oil and gas lease acquisition company. The Company will specialize in acquiring oil and gas leases that have potential for increased oil and natural gas production utilizing new technologies, well work-overs and fracture stimulation systems. American Energy Production, Inc. will acquire oil and gas leases that have proven reserves. The Company will initiate developmental drilling programs to drill new wells on these leases and, if successful, will add oil and gas reserves to the acquired property. American Energy Production, Inc. is involved in three areas of oil and gas operations: Leasing Programs, Production Acquisitions and Drilling with new technologies.
American Energy Production, Inc.'s main objective is to find oil and gas leases with upside potential for enhanced production. The company does this by utilizing the following rules: 1) leases, 2) geology, 3) engineering and 4) mapping from 3-D seismic.
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 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.