SAN ANTONIO, May 29, 2003 (PRIMEZONE) -- American Energy Production Inc., (OTCBB:AMEP), an emerging developer of oil and gas reserves, announced the March 31, 2003, 10 QSB and details of the $33,011,202 gross Future Net Revenue of the non-producing oil and natural gas reserves after deductions and discounted FNI as per the latest engineer report.
American Energy Production Inc. completed the acquisition of the Proco Operating Co. Inc., Marble Falls Unit located in Comanche and Eastland County, Texas on February 20, 2003. An oil and natural gas reserve report by an independent petroleum engineer was completed on May 20, 2003. The reserve report has proven recoverable developed non-producing reserves of 2,232,522 barrels of oil and condensate and gross remaining recovery of developed non-producing natural gas at 2.985 billion cubic feet. 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 dollars of recoverable reserves, as documented in the March 31, 2003 10QSB. This filing can be viewed at www.FreeEdgar.com. A copy of the complete Petroleum Engineers report can be found at: http://www.americanenergyproduction.com/EngineersReport.html
The Marble Falls Unit consist of 3000 plus acres of oil and gas leases and related oil and gas production equipment. These oil and gas leases have a long history of production from several producing horizons and have 32 wells capable of producing oil and natural gas. American Energy Production, Inc. will re-stimulate several of the Marble Falls formation oil wells where most of the oil has been produced on these leases. The first project for AMEP will be two wells reworked in the Marble Falls formation and a third well will be completed as a new Duffer formation discovery. The Duffer formation has not been explored extensively in this area. The Company's success in a re-completion of existing wells on the lease will add substantial oil and natural gas reserves to the American Energy Production Inc. assets.
Charles Bitters, President of American Energy Production Inc., explains, "While these reserve findings are extremely positive, the future net revenue and income of the Kirk Field Marble Falls unit is based on today's market commodity prices. Due to the volatile Global oil and natural gas markets, there can be no guarantee these prices will be realized in the future."
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.