MINERAL WELLS, Texas, August 21, 2003 (PRIMEZONE) -- American Energy Production Inc. (OTCBB:AMEP), announced today the Company has begun testing with a new technology as previously mentioned. The testing of a heavy oil sand additive is being used in leases to be acquired in the future. Treatment of two heavy sand oil wells with the additive has begun on 8/19/03.
American Energy Production Inc. on February 20, 2003 acquired oil and gas leases in Comanche and Eastland counties, Texas consisting of 3,000 plus acres that 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
American Energy Production Inc., signed a Letter Of Intent with Production Resources Inc., on June 24, 2003 to purchase substantially all of the oil properties owned by the company in Medina County, Texas. The oil 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 is approximately $29 per barrel. Presently Production Resources Inc., has 192 fully equipped oil wells capable of producing several hundred thousand dollars per month with the new technology discussed above, 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.
Charles Bitters, President of American Energy Production Inc, stated, "We are excited with the new technology. We believe that this product will greatly enhance our current properties as well as have a demand in areas where there is heavy oil. It will allow the company to expand tremendously. We realize that this is just the initial stage of product testing and cannot be assured that the results will be as anticipated." 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.
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CONTACT American Energy Production Inc.
P.O. Box 1406
Mineral Wells, Texas 76068
(210) 410-8158
(210) 657-3783
JGD Investment Services
John DeLisa
(888) 910-2323