AMEP Good NEWS:
American Energy Production Inc. Announces ``It Rained'
Tuesday May 2, 10:30 am ET
MINERAL WELLS, Texas--(BUSINESS WIRE)--May 2, 2006--American Energy Production Inc. (OTCBB:AMEP - News) announced today a major rainfall on wholly owned Bend Arch Petroleum Inc. Palo Pinto 12 well leases in Palo Pinto County, Texas.
Charles Bitters, President of American Energy Production Inc., stated, "This may be one of the most important news releases AMEP has made in the past year for Bend Arch Petroleum Inc. The area around North Texas, especially Palo Pinto County hasn't had measurable rainfall for over one year resulting in a shortage of fresh water to fracture stimulate the Barnett Shale and Marble Falls formations currently in production. With over 3.5 inches of rain the creeks close to the property are running and the stock tanks are almost full. Having this volume of fresh water available Bend Arch can immediately make plans to get on the service companies list to begin frac operations."
The first well Bend Arch plans to fracture stimulate is the Hart #2 Marble Falls oil and natural gas producer. This well was originally fracture stimulated with a small 2600 barrel slick water frac in early 2005 and immediately produced 1000 barrels of oil in the first week of production. The Company believes by fracting with 8000 to 10000 barrels of slick water this well has the potential to make more oil and natural gas for an extended period of time.
A unidrolics jet pump assembly was installed on the Bend Arch Petroleum Hart #8 well on May 1st and as soon as storage tanks are delivered the gas well will be put into production. The unidrolics pump will help remove the fracture fluid still to be recovered from the well faster than a conventional pumping unit.
Bend Arch Petroleum's Phantom Rig I has commenced drilling on the Murphy #3 and 8 5/8" surface pipe has been cemented in place. The Company is very excited about this prospect well because of the seismic data retrieved from the extensive seismic shoot done in 2005 by Bend Arch Petroleum Inc.
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 petroleum engineer 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.
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FYI and DD,
... %^ greeneyedhawk
