Jun 08, 2006 (M2 PRESSWIRE via COMTEX News Network) -- American Energy Production Inc (OTCBB:AMEP), is a company that our research team will be tracking over the ensuing weeks. They recently came out with a significant corporate development, causing a market stir. The BWR Research Team will continue to bring its subscribers cutting edge research tools, and second to none customer service.
American Energy Production Inc a Business Development Company who invests in other companies that acquire, develop, produce, explore, and sell oil and gas last week announced that their subsidiary, Oil America Group Corporation 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. announced over the weekend that there was no revenue for the three months ended March 31, 2006 or March 31, 2005, respectively. Operating expenses increased $3,677, or 5%, to $73,249 for 2006 from $69,572 for 2005. The increase was primarily the result of a $19,320 increase in professional and a $12,358 increase in general and administrative, offset by a $28,000 decrease in consulting. Other income (expense) increased $401,540 of income, or 104% to $16,449 of income for 2006 from $385,091 of expense for 2005. The increase was primarily from a $381,541 decrease in interest expense in 2006 as compared to 2005 due to a convertible debenture beneficial conversion feature recorded in 2005.
American Energy Production Inc shares continue to trade on very strong volume as shares take a bit of a dip to just below $0.068. Having not released a new corporate development in quite sometime, i feel that this in activity is cauing investors to loose interest. This company has lots of potential as energy cost continue to rise, but it will take some significant announcments to turn this around. The BWR Research Team will continue to follow the market sentiment on this company and numerous others.
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