SOURCE: American Energy Production Inc.

March 28, 2006 08:30 ET

American Energy Production Inc. Announces Update on Bend Arch Petroleum Hart #1 Natural Gas Well

MINERAL WELLS, TX -- (MARKET WIRE) -- March 28, 2006 -- 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."

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 oil and gas appraiser 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.

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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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