AMEP Oil America Group Corporation, a Wholly Owned Investee
of American Energy Production Inc. (OTCBB:), announced today the
Company signed a Letter of Intent with Jacobson Oil Enterprises, LLC
to sell and operate the OTIS Subterranean Oil Recovery Pump, a method
and apparatus for subterranean oil recovery from water separation, in
Texas, Louisiana, Arkansas and New Mexico.
The OTIS Pump is both a method and an apparatus for separating oil
from water down hole underground. This eliminates the necessity and
expense of hauling salt water to a disposal site. The expense of water
disposal is eliminated and the cost of electricity associated with the
pumping process in many cases is reduced from hundreds or thousands of
dollars per month to $25 to $50 per month. This dramatic cost saving
is an opportunity to revive the estimated 500,000 stripper or marginal
oil wells in the United States and make the wells more economical to
produce.
In 2005 Jacobson Oil Enterprises amassed 26 proprietary patents
dealing with the OTIS pump. "This is new oil recovery technology,
which was invented to solve a problem. I am very proud of our
development team and what they have achieved," said Hank Jacobson
President of Jacobson Oil Enterprises.
Joe Christopher, President of Oil America Group Corporation said,
"Texas leads the list of states with unplugged and abandoned oil wells
and OAGC is in the process of acquiring 20 oil wells in various
formations to test the application of the OTIS pump. With thousands of
oil wells that are currently non-producing liabilities, Oil America
Group has the opportunity to bring this new dynamitic technology to
the oil patch at a time oil is trading at historic highs of $75 a
barrel. The Company believes the prospect of success is obviously very
exciting with the OTIS pump."
Charles Bitters, President of American Energy Production Inc.
stated, "We are very excited that Oil America Group Corporation, led
by Joe Christopher has located and signed the letter of Intent with
Jacobson Oil Enterprises to become involved with the OTIS subterranean
oil recovery pump. This gives Oil America Group the opportunity to
raise drilling funds for oil and gas partnerships but to also
diversify into other fazes of the oil and natural gas industry.
American Energy Production Inc. expects immediate success with this
endeavor."
More information and a streaming video can be seen at
www.oilamericagroup.com or www.americanenergyproduction.com in the
next week.
About American Energy Production, Inc.
American Energy Production Inc. is a Business Development Company.
A BDC company is regulated under the 1940 SEC act. That act set out
procedures by which a Company once it establishes a majority position
in a Company can make a series of further investments in its
'investee.' A BDC company does not consolidate financial statements
with its investees and each investee operates independently.
The value of a BDC is derived by adding the value of each of the
investees. In the case of AMEP, each investee's oil and gas leases and
producing properties and equipment will be evaluated by a oil and gas
appraiser and then the independent members of the Board of Directors
of AMEP will use this information along with other relevant facts and
arrive at a value of each investee and the complete BDC.
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
expressed or implied by such forward-looking statements.
KEYWORD: NORTH AMERICA TEXAS UNITED STATES
INDUSTRY KEYWORD: ENERGY OIL/GAS UTILITIES MERGER/ACQUISITION
SOURCE: Oil America Group Corporation
CONTACT INFORMATION:
American Energy Production Inc.
Charles Bitters, 210-410-8158
www.americanenergyproduction.com
or
Oil America Group Inc.
Joe Christopher, 972-386-0601
jchristopher@oilamericagroup.com
www.oilamericagroup.com
A True Wise Person Realizes How Much They DON’T Know, Rather Than How Much They DO..
