American Energy Production Inc. Announces Oil Wells Show 550% Increase in Output with HOA-800 Treatment.

Energy Editors/Business Editors

MINERAL WELLS, Texas--(BUSINESS WIRE)--March 9, 2004

American Energy Production Inc. (NASDAQ:AMEP) (OTCBB:AMEP) announced today the completion of a successful test of its HOA-800 oil treatment. Over the past two weeks injections of HOA-800 have been concentrated on the five-spot test of oil wells on the Olmos lease. The test results show a significant increase in oil production from the four outside oil wells. These four oil wells averaged 2.86 barrels of oil per day for the past seven days. Before treatment, these wells produced only .33 to .50 barrels of oil per day. This equates to over a 550 % increase in daily production. PRI believes that with sustained pumping of AMEP HOA-800 into the middle well of the five-spot test, oil production will increase even more. AMEP HOA-800 has also now been injected into 12 other Olmos oil wells on the lease, and it is anticipated the oil production will increase rapidly over the next few months as more of these wells receive the treatment.

The Company's wholly owned subsidiary Production Resources Inc. has hired a contract pumping service to help inject AMEP HOA-800 into a select number of the 193 Olmos heavy oil wells operated on its leases. Due to the heavy rainstorms of the past few months PRI was unable to inject AMEP HOA-800 on a regular time basis. PRI is pleased to report that well injections are now back on pace to treat four to five oil wells per day.

The potential proven producible oil reserves on the lease are approximately 62,000,000 barrels, and the Company believes only about 2% to 4% of these oil reserves have been recovered over the last 20 years. PRI plans to eventually treat all 193 of the oil wells with the goal of producing 400 to 800 barrels of oil a day. At today's oil price of $36.00 per barrel, the lease could potentially produce $4,500,000, in revenue annually.

Charles Bitters, President of AMEP said, "This new heavy oil additive is very exciting and has the potential to radically change secondary recovery of heavy oil." Mr. Bitters also stated, "The purchase of the PRI properties along with the opportunity to use the AMEP HOA-800 treatment on these properties will allow the Company to add tremendous value to AMEP in a very short time."

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.