SOURCE: American Energy Production Inc.

February 16, 2006 09:22 ET

American Energy Production Inc. Announces Investee Bend Arch Petroleum Inc. Continues Drilling Success With Ideco H-40 Drilling Rig

MINERAL WELLS, TX -- (MARKET WIRE) -- February 16, 2006 -- 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.

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