MINERAL WELLS, Texas, Sept. 23, 2003 (PRIMEZONE) -- American Energy Production Inc. (OTCBB:AMEP) announced today the results from the treating and testing of two heavy oil Olmas formation wells on lease properties American Energy Production Inc. is negotiating to purchase. The two oil wells have a history of producing one half to one barrel of oil per day for the last ten years. After treatment with the heavy oil additive, the two oil wells have dramatically increased oil production, one well making over ten (10) barrels of oil per day and the second well making over twelve (12) barrels of oil per day. This is a 2000% increase from the past production history of the two oil wells. AMEP realizes the wells may not sustain this increased production rate, but any production over 1 barrel per day is a vast improvement. Not only did the wells increase in oil production, the oil additive changed the physical structure of the oil, changing the gravity of the oil from 20 gravity to approximately 35 gravity. The oil usually contains 1.7% sulfur content and now the smell of sulfur is barely noticeable. Changing the gravity and removing the sulfur from the oil is extremely important price wise for the sale of this particular oil. This Olmas formation oil usually brings $2.00 to $3.00 per barrel less than West Texas sweet crude oil. The oil additive will possibly change the oil from South Texas sour crude to sweet crude. AMEP is sending samples of the treated oil to be tested for viscosity and content of sulfur to lab testing facilities in Alice, Texas. The Company will release the results of the test in the future.
American Energy Production Inc. will proceed with treatment and testing of four more oil wells immediately with the new heavy oil additive. This lease has 193 oil wells equipped and capable of producing oil. The potential proven produceable oil reserves on the lease is 62,000,000 barrels, and the Company believes only about 2% to 4% of these oil reserves have been produced over the last 20 years. AMEP plans to eventually treat all 193 of the oil wells and then have an ongoing treatment program.
American Energy Production Inc. is in the process of buying pump trucks and transports to treat the oil wells. This will make the Company self sufficient instead of relying on outside pumping services.
Charles Bitters, President of AMEP, said "This new heavy oil additive is very interesting and at this time has the potential to radically change the way secondary recovery of heavy oil is done in the future. However, it will take more treating and testing to refine the most efficient treatment methods."
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" and 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 implied by such forward-looking statements.