HOA-800 additive, SEE Comments below this DD announcement.
American Energy Production Inc. Announces Positive Testing Results with AMEP HOA-800
Wednesday July 6, 8:01 am ET
MINERAL WELLS, Texas--(BUSINESS WIRE)--July 6, 2005--American Energy Production Inc. (OTCBB: AMEP - News) announced today its wholly owned investee, Production Resources Inc. posted positive testing results after 8 months of testing various procedures utilizing AMEP HOA 800. PRI discovered a method of well treatment that combines the utilization of heat along with AMEP HOA-800 in a chemical process that has returned positive results. PRI has increased oil production from the Olmos formation on the four test wells by as much as 300% for the month of June. Management now plans on expanding the testing area to an additional 10 oil wells in the next 30 to 45 days.
Charles Bitters, President of American Energy Production Inc. stated, "PRI has been working extremely hard on achieving the desired results with AMEP HOA-800 and now believe its time to start expanding this treatment program. There is still room for improvement, but I believe PRI can now benefit because of current record high oil prices and increased production rates from the Olmos heavy oil sand field. This oil field is very difficult to produce because of the tight sand and the compaction of the heavy oil in the sand, still these are very exciting results."
Management cannot discuss the details and/or formulations being used with AMEP HOA- 800, but PRI believes the heat treatment once perfected can possibly be sold to other oil operators. The Company will keep investors informed of the expanded test results."
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IMVHO, I think some investors are overlooking the above AMEP wholly owned PRI, and already drilled 193 PRI heavy Oil well project, with working pumps. AMEP's wholly owned Bend Arch, with it's 7,000 acres in the Barnett is getting 80% of the attention by new eyes with new revenue projections, especially with the news that AMEP will develop the 7,000 acres independently with it's just acquired big Ideco Rig. Note that PRI can use the 'Crane Carrier Portable Work-over Rig' to service these wells and bring them back into production and pumping Oil, while Bend Arch drills into the Barnett Shale and the Marble Falls formations, and multiple other pay zones (Up to 11 Oil and/or NG pay zones exists on Bend Arch's leases) with the just acquired Ideco Rig. Please note that not all of the 193 PRI Oil wells will be producers, about one in five will be used to inject the heated HOA-800 treatment. That said, pullout a calculator and apply a conservative 'X' barrels per day to 154 Oil wells. It is a significant number, that should be attainable in relatively short time period, since additional drilling is not required, and AMEP will not have to wait on a servicing rig, as it owns it's own Crane Carrier portable work over rig. BTW, when I recently talked to CB, the CEO, I asked him how much was he getting for PRI's heavy Oil, he told me PRI got $60 a barrel on the last load delivered, Texas has refineries that process heavy oil, and now pay good prices. When these wells were shut in, heavy oil was not in high demand and only paid a few bucks per barrel, thus CB got a good deal when picking up this 193 well project at a very cheap price. When PRI develops it's 154 wells, the revenues will be VERY significant. Do the math.
GL all AMEP longs.
... %^ greeneyedhawk
