Message #19 From:
Stock News Bot Date: November 18, 2005 02:00:00 AM
AMEP News American Energy Production Inc. Releases Update to Shareholders on the Progress of the Ideco Drilling Rig
MINERAL WELLS, Texas--(BUSINESS WIRE)--Nov. 18, 2005--American Energy Production Inc. (OTCBB:AMEP) announced an update to shareholders on the most recent progress of the Ideco drilling rig purchased by Investee AMEP Strategic Investments Inc. The refurbishing of the Ideco oil drilling rig is now complete. The mud pump engines and the draw works engines are running with no problems. The company is extremely happy with these results. Overhauling two torque converters on the draw works engines are completed and re-installed and ready to operate. Pressure washing and new paint on the rig is also complete. The derrick will be raised ASAP and pictures of the drilling rig will be posted on the websites of AMEP and Oil America Group.
Bend Arch Petroleum Inc. will move the drilling rig to Bend Arch Petroleum Inc., 12 well property, and drill a 3,100 foot developmental well. This well will have four to five potential natural gas formations that could produce 200,000 to 300,000 cubic feet of natural gas per day, however there are no guarantees the well will be commercial.
In a recent news announcement, the extensive 3-D seismic study on 2500+ acres, consisting of two tracts, in Central and North Central Palo Pinto County, Texas for Bend Arch Petroleum Inc. will be completed this weekend. The purpose of the seismic evaluation is to prepare the way for the re-entry and deepening of two existing wells by Bend Arch Petroleum Inc. into the Barnett Shale formation with horizontal lines and two proposed new joint venture horizontal Barnett Shale wells to be drilled by Oil America Group over the next few months. As stated previously this 3-D seismic shoot will take some of the guess work out of staking locations for the horizontal Barnett shale wells.
As previously announced AMEP has posted its best 3rd quarter ever. With the Ideco drilling rig becoming operational and our Production Resources Inc. oil properties having great success with AMEP HOA 800 our forward-looking guidance looks positive for a strong 4th quarter and 1st quarter of 2006.
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 risks, 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.
