American Energy Production Inc. Announces Off-Set Barnett Shale Well by Bend Arch Petroleum Inc.
Business Wire "US Press Releases "
MINERAL WELLS, Texas--(BUSINESS WIRE)--Sept. 12, 2006--
American Energy Production Inc. ("AMEP") (OTCBB: AMEP) announced today that its wholly-owned portfolio company, Bend Arch Petroleum Inc. ("Bend Arch"), completed the Nash-Murphy Unit #1 well -- an oil and natural gas, Barnett Shale well located on Bend Arch's Palo Pinto County, Texas twelve-well development project.
The Nash-Murphy Unit #1 natural gas well reached a total depth of 4,999 feet on June 10, 2006. The well was examined utilizing electric logging tools and, based on that examination, management determined that the well has five possible oil and natural gas producing formations. Production casing was run to total depth and cemented in place ready for completion.
Completion began on June 18, 2006 when the well was perforated in the Barnett Shale formation. The well was preliminarily treated with acid fluid and the well flowed back most of the treatment. On August 15, 2006, the Nash-Murphy was fracture-stimulated using a 4,500 barrel slick water frac including 75,000 pounds of sand. In the past several weeks, over 4000 barrels of frac fluid have been recovered from the well. This week the oil storage tanks and pumping unit have been placed on the well location and full production is estimated to begin early next week.
The Nash-Murphy well is located 1,400 feet from the Bend Arch Petroleum Murphy #1 Barnett Shale well that has produced over $1,250,000 of gross proceeds from the sale of oil and natural gas since August of 2004. This location was chosen using a seismic shoot done by Bend Arch in the fall of 2005. The seismic maps picked an Ellenberger high that had potential oil production. After electric logging, it was determined the Ellenberger formation was 100 feet high but the formation did not develop with either porosity or permeability, or have any presence of hydrocarbons.
Charles Bitters, President of AMEP stated, "We are very pleased Bend Arch Petroleum Inc. is maintaining its aggressive program of drilling Barnett Shale wells. The Nash-Murphy well has multiple pay zones that have the potential to produce oil and natural gas for many years, but as always the company will begin at the bottom of the well in the Barnett Shale and work to the top. With the current prices of oil and natural gas, this new discovery, 400 acres the company owns in that area, also adding other new potential productive formation beyond the Barnett Shale."
Quick question. I noticed that AMEP showed a profit for full year 2005. Which quarter was that? I'm missing it. I'm likely taking a small entry position today.
Related Quotes Sym. Price Chg. AMEP Trade News 0.054 0.004 American Energy Production Inc. Announces Off-Set Barnett Shale Well by Bend Arch Petroleum Inc.
September 12, 2006 18:19:12 (ET)
MINERAL WELLS, Texas, Sep 12, 2006 (BUSINESS WIRE) -- American Energy Production Inc. ("AMEP") (AMEP, Trade) announced today that its wholly-owned portfolio company, Bend Arch Petroleum Inc. ("Bend Arch"), completed the Nash-Murphy Unit #1 well -- an oil and natural gas, Barnett Shale well located on Bend Arch's Palo Pinto County, Texas twelve-well development project.
The Nash-Murphy Unit #1 natural gas well reached a total depth of 4,999 feet on June 10, 2006. The well was examined utilizing electric logging tools and, based on that examination, management determined that the well has five possible oil and natural gas producing formations. Production casing was run to total depth and cemented in place ready for completion.
Completion began on June 18, 2006 when the well was perforated in the Barnett Shale formation. The well was preliminarily treated with acid fluid and the well flowed back most of the treatment. On August 15, 2006, the Nash-Murphy was fracture-stimulated using a 4,500 barrel slick water frac including 75,000 pounds of sand. In the past several weeks, over 4000 barrels of frac fluid have been recovered from the well. This week the oil storage tanks and pumping unit have been placed on the well location and full production is estimated to begin early next week.
The Nash-Murphy well is located 1,400 feet from the Bend Arch Petroleum Murphy #1 Barnett Shale well that has produced over $1,250,000 of gross proceeds from the sale of oil and natural gas since August of 2004. This location was chosen using a seismic shoot done by Bend Arch in the fall of 2005. The seismic maps picked an Ellenberger high that had potential oil production. After electric logging, it was determined the Ellenberger formation was 100 feet high but the formation did not develop with either porosity or permeability, or have any presence of hydrocarbons.
Charles Bitters, President of AMEP stated, "We are very pleased Bend Arch Petroleum Inc. is maintaining its aggressive program of drilling Barnett Shale wells. The Nash-Murphy well has multiple pay zones that have the potential to produce oil and natural gas for many years, but as always the company will begin at the bottom of the well in the Barnett Shale and work to the top. With the current prices of oil and natural gas, this new discovery, 400 acres the company owns in that area, also adding other new potential productive formation beyond the Barnett Shale."
Forward-Looking Statements:
Statements contained in this release, which are not historical facts, may be considered "forward looking statements." All forward-looking statements are, by necessity, only estimates of future results and actual results achieved by AMEP and Bend Arch may differ materially from these statements due to a number of factors. Any forward-looking statements speak only as of the date made. Statements made in this document that are not purely historical are forward-looking statements, including any statements as to beliefs, plans, expectations, or intentions regarding the future. Risk factors that may cause results to differ from projections include, without limitation, loss of equipment, inadequate capital, competition, loss of key executives, declining prices, and other economic factors. Neither AMEP nor Bend Arch assume any obligation to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such statements. You should independently investigate and fully understand all risks before making investment decisions.
SOURCE: American Energy Production Inc.
American Energy Production Inc. Charles Bitters, 210-410-8158 www.americanenergyproduction.com or Oil America Group Inc. Joe Christopher, 972-386-0601 jchristopher*oilamericgroup.com Copyright Business Wire 2006
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American Energy Production, Inc., a business development company, invests in companies that acquire, develop, produce, explore, and sell oil and gas in the United States. The company has interest in certain oil and gas leases; oil and gas wells located on those leases; surface and underground equipment, pipelines, and other property and fixtures in or on the leases; and rights of way, leases, contracts, and agreements for pipeline compressor stations or boosters utilized in the operations of the facilities. These properties are located in Comanche and Eastland Counties, Texas in the United States. The company was incorporated in 2000. It was formerly known as Communicate Now.com, Inc. and changed its name to American Energy Production, Inc. in 2002. American Energy Production is based in Mineral Wells, Texas.
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