American Energy Production Inc. Announces Positive Testing Results with AMEP HOA-800.

MINERAL WELLS, Texas -- American Energy Production Inc. (OTCBB: AMEP) announced today its wholly owned investee, Production Resources Inc. posted positive testing results after 8 months of testing various procedures utilizing AMEP HOA 800. PRI discovered a method of well treatment that combines the utilization of heat along with AMEP HOA-800 in a chemical process that has returned positive results. PRI has increased oil production from the Olmos formation on the four test wells by as much as 300% for the month of June. Management now plans on expanding the testing area to an additional 10 oil wells in the next 30 to 45 days.

Charles Bitters, President of American Energy Production Inc. stated, "PRI has been working extremely hard on achieving the desired results with AMEP HOA-800 and now believe its time to start expanding this treatment program. There is still room for improvement, but I believe PRI can now benefit because of current record high oil prices and increased production rates from the Olmos heavy oil sand field. This oil field is very difficult to produce because of the tight sand and the compaction of the heavy oil in the sand, still these are very exciting results."

Management cannot discuss the details and/or formulations being used with AMEP HOA- 800, but PRI believes the heat treatment once perfected can possibly be sold to other oil operators. The Company will keep investors informed of the expanded test results.

Update to investors.

With respect to AMEP's wholly owned investee Bend Arch Petroleum Inc., Nash 1-C Barnett Shale well. Management has been testing several uni-draulics jet pump down-hole assemblies to gain optimal results. The third jet assembly will be installed on Thursday July 8th and Bend Arch Petroleum should have results the week of July 12. Though initial results are positive Bend Arch Petroleum believes there can be improvements that will increase production rates. To view a current picture of the work over rig on the Nash 1-C well please follow this Link.

http://www.americanenergyproduction.com/projects_1.html

Also on June 28, 2005 AMEP announced that wholly owned investee Bend Arch Petroleum Inc. is in the process of filing permits to re-enter another well in the Barnett Shale formation located on its 12 well Palo Pinto Project. This well could be our most significant to date and a major milestone for the company due to the 1000 to 1500 horizontal lateral line that will be drilled in the Barnett Shale. In most scenarios a horizontal well will produce more oil and natural gas than a vertical well. The Company is extremely excited about the potential for this Barnett Shale well. Bend Arch Petroleum is in a great position to benefit from record high prices for oil and natural gas prices because the Company has accumulated over 7,000 acres of leases that have potential Barnett Shale production.

Bend Arch Petroleum Inc. and Oil America Group Inc. of Dallas, another 100% owned investee of AMEP, plan to offer drilling partnerships to potential investors to drill Barnett Shale wells on the above-mentioned properties in the near future. For more information contact Joe Christopher at Oil America Group Inc.

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.