MINERAL WELLS, Texas, Jan. 21, 2004 (PRIMEZONE) -- American Energy Production Inc. (OTCBB:AMEP) received the lab results comparing AMEP HOA-800 treatment oil to the base Olmas oil produced on the Company's recent acquisition Production Resources Inc. leases.
The base oil was tested to determine three factors: 1) gravity, 2) sulfur content, and 3) viscosity. The base line on the Olmas oil showed a gravity of 20.9, a sulfur content of 2.0276 and a viscosity of 72.93. When compared with the AMEP HOA-800 test mixture recovered from the "Wilson B" oil tank the numbers showed a significant difference especially in the viscosity. The gravity rose to 21.7, the sulfur content dipped to 1.624 and the viscosity dropped to 61.08. While the gravity and sulfur content numbers did not show a dramatic change the viscosity number is very significant because the 12-point drop demonstrates that AMEP HOA-800 is thinning the oil allowing it to flow through the sand formation easier and faster increasing the production from the oil wells. More reports will be released as information is compiled. The reports can be reviewed at http://www.americanenergyproduction.com on January 24, 2004.
American Energy Production Inc. began treating and testing oil on these leases in the fall of 2003 with the new heavy oil additive AMEP HOA-800. Results of initial well treatments showed increased oil production of more than 1000%. With the current information available, the positive results of the tests completed so far, and the price of oil today, the Company will begin the second phase of treatment with AMEP HOA-800, treating as many oil wells as possible over the next several months.
American Energy Production Inc. acquired Production Resources Inc. on January 1, 2004 as a wholly owned subsidiary. The oil properties owned by the Company in Medina County, Texas are west of San Antonio The PRI oil leases cover more than 1,500 acres and have a long history of oil production through three producing horizons and have an estimated 62,000,000 barrels of proven recoverable oil reserves. The price of oil today is approximately $29 per barrel. Presently, Production Resources Inc. has 193 fully equipped oil wells capable of producing several thousand dollars per month of oil with the new technology discussed above and stimulation procedures that will be incorporated into oil operations. The PRI 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, "AMEP HOA-800 is an interesting new chemical technology. We believe that this product will greatly enhance our current properties as well as have a demand in areas where there are heavy oil operations. We realize this is the initial stage of product testing and cannot assure 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.