AMEP American Energy Production, Stock Message Board, Quote, DD, News
American Energy Production Inc. Reports Fourth Quarter and 2005 Full Year Financial ResultsStockholder Equity Increased 954% in 2005
American Energy Production Inc. (OTC BB: AMEP Oil Message board, news, dd, quote) announced today the filing of it annual 10-K financial report ending December 31, 2005.
2005 Financial and Operational Highlights:
-- Net Income increased from (-$5,049,995) in 2004 to a positive
$13,920,315 in 2005
-- Operating expenses decreased $939,415 in 2005
-- Interest expense decreased to $595,125 in 2005 from $3,820,828 in 2004
-- Cash flow increased to $471,339 in 2005 from $268,665 in 2004
-- Net asset value at beginning of period $.01; Net asset value at end of
period $.05.
-- Total stockholders equity increased to $18,577,714 in 2005 from
$1,946,766 in 2004
Charles Bitters, President of American Energy Production Inc., said, "The Company is very pleased with the progress of AMEP and its wholly owned investees Bend Arch Petroleum Inc., Production Resources Inc. and Oil America Group Corp. The annual financial report shows the building of an oil company one lease and one oil or natural gas well at a time, while cutting debt and liabilities as the Company grows. AMEP assets have increased to $18,577,714 with the acquisition of oil and gas leases, drilling rigs, oil and gas production equipment and rolling stock the investees have accumulated in 2004 and 2005. The investees have positioned themselves to take full advantage of the historically high oil and natural gas prices."
2006 OUTLOOK
American Energy Production Inc. and its investees will be able to participate in many more oil and natural gas projects because of the ownership of its own drilling rigs. This rig availability allows Bend Arch Petroleum Inc. to select and drill Barnett Shale prospects that have the most potential for success. With 7000+ acres of Barnett Shale leases in the Ft. Worth Basin, which are held by producing oil or gas wells, Bend Arch Petroleum will continue to drill and develop its own leases as well as joint venture with other local operators.
Production Resources Inc. located in Medina County, Texas is continuing with the testing of AMEP HOA-800 on the heavy oil produced from the Olmas formation. With world oil prices at new record levels the Company will be able to extend the testing to promising areas located on the 1700 acres currently owned by PRI.
Oil America Group Corp., located in Dallas, Texas is becoming a very integral investee of American Energy Production Inc. Joe Christopher, President of Oil America Group Corp., is currently structuring oil and natural gas partnerships to raise money to drill Barnett Shale acreage owned by Bend Arch Petroleum Inc. Many investors recognize high oil and natural gas prices at the pump may be offset by investing in their own oil or natural gas wells.
American Energy Production Inc. Announces Update on Bend Arch Petroleum Hart #1 Natural Gas Well
American Energy Production Inc. (OTC BB: AMEP) announced successful completion of drilling operations by Bend Arch Petroleum's Ideco H-40 drilling rig, Phantom Rig I on the Hart # 8 natural gas well. The drilling depth of the Bend Arch Petroleum's Hart # 8 reached 3,257 feet, the target depth of the original well plan to test the Keechi Farms Strawn sand.
The Hart # 8 natural gas well was electrically logged on March 12 and petroleum engineers determined the well bore has five potential oil and natural gas formations. 5 1/2' casing was cemented to the total depth of 3,257 feet. The Hart # 8 well has been acidized in the Keechi Farms Strawn sand and on Monday, March 27, the well was fractured stimulated. Management and treating company engineers determined the frac job was successful and now the frac water has to be recovered to determine the natural gas flow rate. The frac fluid should be recovered in four to seven days.
The Ideco Phantom Rig I will be moving to a second well on the Palo Pinto 12 well project and a location with a Ellenberger or a Mississippi reef high determined by the extensive seismic shoot recently completed by Bend Arch Petroleum Inc. will be the target. The seismic mapping determined the location to be 70+ feet high to other Ellenberger formations in the area. The new well will be drilled into the Ellenberger Formation and then electric logs will determine if the unusually high formation will be a successful oil or natural gas producer. The Barnett Shale formation is above the Ellenberger formation and engineers will determine if a horizontal completion is also available in the Barnett Shale since this location is approximately 1,000 feet from the Murphy #1 Barnett Shale well that has produced over $1,000,000.00 since July of 2004.
Charles Bitters, President of American Energy Production Inc., stated, "The Company is very excited with the opportunities that the Phantom Rig I will give Bend Arch Petroleum and Oil America Group to drill and participate in many new natural gas wells and oil wells. We believe the Company will expand its operations dramatically in the next few months."
American Energy Production Inc. Announces Major New Development and Strategic Acquisition
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.
American Energy Production Inc. Announces Investee Bend Arch Petroleum Inc. Continues Drilling Success With Ideco H-40 Drilling Rig
American Energy Production Inc. (OTC BB: AMEP) announced successful initial drilling operations by Bend Arch Petroleum's Ideco H-40 drilling rig, Phantom Rig I.
Drilling is continuing on Bend Arch Petroleum's Hart well #8. Drilling footage reached 2500 feet today, which is half way to the target depth of 4900 feet. The rig had some minor repair issues that have now been corrected and Phantom I is performing flawlessly.
The company is excited to now begin an aggressive drilling program in the Barnett Shale formation. Management will be releasing several new development projects in the near future. Some new pictures and video clips of the Ideco Drilling rig can be seen at one of the web sites listed below: http://www.americanenergyproduction.com/projects_7.html or http://www.oilamericagroup.com/
Charles Bitters, President of American Energy Production Inc., stated, "Any time equipment as complex as a drilling rig and mud pumps is put back in operation after being out of operation, there are bearings, seals and gaskets that will invariably have to be replaced. However, Phantom Rig I is now operating very smoothly and as I have said before, this rig is ideal to now allow continuous drilling operations for Bend Arch Petroleum Inc."
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.
For more information, please log on to our website: www.americanenergyproduction.com.
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.
