SOURCE: American Energy Production Inc.

April 19, 2006 14:22 ET

American Energy Production Inc. Reports Fourth Quarter and 2005 Full Year Financial Results

Stockholder Equity Increased 954% in 2005

MINERAL WELLS, TX -- (MARKET WIRE) -- April 19, 2006 -- American Energy Production Inc. (OTC BB: AMEP) 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."


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. ("American Energy," "the Company," "we," "us") is a publicly traded business development company that is engaged primarily in the investment in other companies that acquire, develop, produce, explore and sell oil and gas. The Company anticipates that the companies it has invested in will be able to sell all oil that it can produce to petroleum refiners and marketers under the terms of short-term purchase contracts and at prices in accordance with arrangements that are customary in the oil industry. Our capital is generally used by our portfolio companies to finance growth and working capital.


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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