SOURCE: AAA Energy Inc.

March 21, 2007 09:00 ET

AAA Energy Inc. Partners With Large China Oil and Gas Group in the Prolific Ordos Oil and Gas Basin

RENO, NV -- (MARKET WIRE) -- March 21, 2007 --AAA Energy Inc. (OTCBB: AAAE), an energy exploration company focused on discoveries in emerging energy frontiers and horizons, provides a further progress update on its China sector focus. Following multiple management meetings with leading Chinese oil and gas companies and related government agencies and research institutes, the Company intends to focus its initial resources on oil and gas projects located within the highly prolific Ordos Basin.

Ordos Basin - The Ordos Basin, also known as the Shaanxi-Gansu-Ningxia Basin, is the second largest sedimentary basin in China with reported overall oil reserves topping 8.588 billion tons of oil, 10.7 trillions cubic meters of natural gas, and 3.98 trillion tons of coal. The 370,000 square kilometer Basin has been dubbed the country's energy bank for the 21st century and plays an important role in China's economic development, supplying 4.75 billion cubic meters of natural gas to over 15 cities, including Beijing, Tianjin, Nanjing and Shanghai. In order to meet China's soaring energy demands imposed by its rapid economic growth, predicted by the International Energy Agency to grow 2.7 percent annually until 2030, the country's energy development blueprint is placing increased emphasis on optimizing the development of energy resources within this highly prolific basin.

AAA's Strategic Chinese Partner in the Basin

Management has chosen the Fangzhou Petroleum Group as its initial strategic partner in the Basin. The Fangzhou Petroleum Group is a diversified energy group principally owned by Shaanxi regional government entities, with core holdings in the Basin, substantial investment in the energy supply and service sectors, and an associated company of the Shaanxi Yangchang Petroleum Group Co., Ltd. (Yangchang), the fourth largest oil and gas company in China, formed by the Chinese government in September 2005 through the merger of 21 oil exploration and development companies as well as three refineries located in northern China. Shaanxi is China's fourth largest oil producing province, with crude output reaching more than 90 million barrels in 2004 and proven crude oil reserves of 1.1 billion tons. For the eight months ended August 31, 2006, Shaanxi Yangchang produced 6.18 million tons of crude oil, representing an increase of 15 percent from the same period of 2005 and processed 6.32 million tons of crude oil, up 19 percent year on year. The group's sales income amounted to RMB 26.2 billion (US$3.36 billion), up 57 percent from a year ago. Management is currently negotiating participation rights in strategic Fangzhou-controlled oil and gas holdings in the Ordos Basin and is obtaining as well as evaluating additional technical data and reports on these key land holdings.

About AAA Energy Inc.

AAA Energy Inc. is a publicly traded natural resource exploration company with headquarters in Vancouver, BC and oncoming exploration offices in Calgary, Alberta and Xian, China. AAA Energy Inc. aims to secure and develop a portfolio of oil and gas properties in the People's Republic of China. The company is strategically positioning itself in China's Ordos Basin and will soon be ready to begin exploration of prime oil and gas land holdings in the basin. AAA Energy Inc. trades on the NASDAQ OTC BB under the ticker symbol: AAAE.

On behalf of the Board

Albert Au, Director

Contact Information

  • AAA Energy Inc.
    Investor Relations
    Toll Free: 1-877-990-1122