American Energy Production Inc. Announces Wholly Owned Investee Oil America Group Corporation Signed a Letter of Intent with Jacobson Oil Enterprises to Acquire Licensing Agreement to Sell and Operate the OTIS Subterranean Oil Recovery Pump in Texas.

DALLAS -- Oil America Group Corporation, a Wholly Owned Investee of American Energy Production Inc. (OTCBB:AMEP), announced today the Company signed a Letter of Intent with Jacobson Oil Enterprises, LLC to sell and operate the OTIS Subterranean Oil Recovery Pump, a method and apparatus for subterranean oil recovery from water separation, in Texas, Louisiana, Arkansas and New Mexico.

The OTIS Pump is both a method and an apparatus for separating oil from water down hole underground. This eliminates the necessity and expense of hauling salt water to a disposal site. The expense of water disposal is eliminated and the cost of electricity associated with the pumping process in many cases is reduced from hundreds or thousands of dollars per month to $25 to $50 per month. This dramatic cost saving is an opportunity to revive the estimated 500,000 stripper or marginal oil wells in the United States and make the wells more economical to produce.

In 2005 Jacobson Oil Enterprises amassed 26 proprietary patents dealing with the OTIS pump. "This is new oil recovery technology, which was invented to solve a problem. I am very proud of our development team and what they have achieved," said Hank Jacobson President of Jacobson Oil Enterprises.

Joe Christopher, President of Oil America Group Corporation said, "Texas leads the list of states with unplugged and abandoned oil wells and OAGC is in the process of acquiring 20 oil wells in various formations to test the application of the OTIS pump. With thousands of oil wells that are currently non-producing liabilities, Oil America Group has the opportunity to bring this new dynamitic technology to the oil patch at a time oil is trading at historic highs of $75 a barrel. The Company believes the prospect of success is obviously very exciting with the OTIS pump."

Charles Bitters, President of American Energy Production Inc. stated, "We are very excited that Oil America Group Corporation, led by Joe Christopher has located and signed the letter of Intent with Jacobson Oil Enterprises to become involved with the OTIS subterranean oil recovery pump. This gives Oil America Group the opportunity to raise drilling funds for oil and gas partnerships but to also diversify into other fazes of the oil and natural gas industry. American Energy Production Inc. expects immediate success with this endeavor."

More information and a streaming video can be seen at www.oilamericagroup.com or www.americanenergyproduction.com in the next week.

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.

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.