Energy Production Inc. Announces Operations Update of Wholly Owned Subsidiary
Production Resources Inc.
December 27, 2:30 pm ET
WELLS, TX--(MARKET WIRE)--Dec 27, 2007 -- American Energy Production Inc. (OTC
announced today its wholly owned subsidiary Production Resources Inc., (PRI)
Resources Inc. will have gross oil sales of approximately $426,000 at the end
2007 as compared to $384,000 in 2006. Several factors contributed to this
increase in oil sales. Number one is an approximate 10% increase in daily oil
production. Number two is obviously the increase in the world price of crude
oil. Number three is some new chemical treatments combined with new oil recovery
methods that PRI is experimenting with.
Bitters, President of American Energy Production Inc., stated, "We are very
pleased Production Resource Inc. is aggressively seeking new ways to make the
oil flow faster out of the Olmos Sand formation that covers the 1700 acres
has under lease in Medina County, Texas. Management has always maintained that
if the Company can determine how to change the viscosity of the heavy oil there
are millions of barrels of oil to be produced in the field. Joe Christopher,
President of Oil America Group, another wholly owned subsidiary of American
Energy Production Inc., and Earl Walker, President of Production Resources
are working on a down hole formation heater that will heat the Olmos formation
and change the viscosity of the 22 gravity oil. The new formation heater should
be installed in the next few weeks."
Walker stated, "When American Energy Production Inc. acquired PRI we were
selling our oil for $24.00/barrel and now we are selling oil for $75.00 to
$84.00 a barrel. The price increase has allowed the Company to institute a
to remove the old hollow rod pumping technology that many of the oil wells
in the field to produce the oil and begin installing 2 3/8" tubing and sucker
rods that will not require as much maintenance on the oil wells and will be
efficient. PRI is reworking ten wells at a time depending on the availability
tubing and sucker rods. The Company believes this oil well reworking and
experimenting with several enhanced oil recovery methods should enable PRI
greatly increase oil production in 2008."
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.
America Group Inc.
The following information was filed by American Energy Production Inc on Wednesday, January 2, 2008 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.