American Energy Production Inc. Announces Major New Development and Strategic Acquisition 2/23/2006
MINERAL WELLS, TX, Feb 23, 2006 (MARKET WIRE via COMTEX) -- American Energy Production Inc. (OTC BB: AMEP) is pleased to announce investee Bend Arch Petroleum has acquired another drilling rig in a joint venture agreement with Armadrill USA, a subsidiary of Aramadrill Mexico.
The acquisition consists of a Challenger 360 Drilling Rig capable of drilling to a depth of 6,000 feet as well as drilling horizontal wells in the Barnett Shale. In today's environment this deal greatly expands the business plan of Bend Arch Petroleum Inc. Profit potential for Bend Arch Petroleum Inc. will be greatly enhanced. Not only does this give the company the ability to use the rig on Bend Arch Petroleum's own drilling projects but management will now be able to contract the rig to other oil and natural gas operators for high drilling prices. The Challenger 360 rig will enable Bend Arch Petroleum to acquire working interests in other wells increases our diversification with drilling oil and natural gas wells and also producing oil and gas wells. Discussions are already underway on several drilling projects.
Charles Bitters, President of American Energy Production Inc., stated, "With the exception of the purchase of our Ideco H-40 Drilling Rig, this is the most significant development of our company to date. I believe this deal greatly improves our future balance sheet and will make the drilling operation more efficient. I believe we are positioning The Company to be a major player in the Barnett Shale natural gas play. Also, the alliance Bend Arch Petroleum Inc. and Armadrill USA have formed will enable Bend Arch Petroleum to buy drilling equipment out of Mexico that is not available in the United States at this time."
Like the Ideco H-40 rig, the Armadrill rig needs some preparation work. The rig is already in Bend Arch Petroleum yard in Mineral Wells, Texas, and is being worked on daily. Management looks forward to the announcement of our first drilling contract or first Company project in the Barnett Shale.
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.
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.
Contact: Charles Bitters 210-410-8158 www.americanenergyproduction.com Or Oil America Group Inc. Joe Christopher 972-386-0601 jchristopher*oilamericagroup.com
-------------------- "As long as there are dreamers, there are dreams that will come true." Posts: 862 | From: CT Yankee..... in FLA | Registered: Aug 2005
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