American Energy Production Inc. Issues Correction of Previously Reported Fourth Quarter and 2005 Full Year Financial Results.

MINERAL WELLS, Texas -- American Energy Production Inc. (the "Company") (OTCBB:AMEP) announced today a correction of previously reported 2005 Full Year Financial Reports for the fiscal year ending December 31, 2005.

On April 19, 2006, the Company issued a news release disclosing certain 2005 Financial and Operational Highlights. The Company has since determined that certain of the information presented in that news release was inaccurate. Accordingly, the Company is issuing this release to supercede and replace the information contained in the April 19, 2005 release, which should be disregarded.

--The Company elected to be regulated as a business development company ("BDC") in 2004. As a BDC, for financial statement purposes, investments are recorded at their fair market value. The Company's financial statements issued prior to its election to be a BDC are not comparable to financial statements issued after its election.

--Net increase in net assets resulting from operations was $13,920,315 in 2005 as compared to a net loss of $5,049,995 in 2004. The increase in net assets resulting from operations was entirely from an unrealized gain on investments in the amount of $14,852,861. Upon the occurrence of a liquidity event with respect to any of the Company's investments, (e.g. a sale or other disposition of our investment) the amount actually realized may differ. The unrealized gain on investments was comprised of $3,672,020 for our majority-owned affiliate, Production Resources, Inc. and $11,180,841 for our majority-owned affiliate Bend Arch Petroleum, Inc. The fair value of this investment was determined in good faith by the Company's Board of Directors.

--Net investment loss as a BDC decreased from $1,248,253 in 2004 to $348,846 in 2005. Since the Company had no revenue in either 2005 or 2004, the decrease of $939,415 was entirely from a reduction of operating expenses.

--Interest expense decreased to $595,125 in 2005 from $3,820,828 in 2004. However, the decrease was primarily from a non-cash interest expense reduction of $3,112,722 for the amortization of a convertible debenture beneficial conversion feature.

--Cash and cash equivalents increased to $471,339 in 2005 from $268,665 in 2004. The increase in cash and cash equivalents was primarily from $2,240,633 of net proceeds from the issuance of common stock, offset by $1,650,556 of net advances to the Company's majority-owned subsidiaries and $354,099 of cash used in operating activities. The Company has not yet created positive cash flow from operations.

--Net asset value per share increased from $.01 in 2004 to $.04 in 2005.

--Total stockholders equity increased to $18,577,714 in 2005 from $1,946,766 in 2004. The increase was primarily from the $14,852,861 unrealized gain on investments discussed above.

Charles Bitters, President of American Energy Production Inc., said, "The Company is very pleased with the progress of AMEP and its majority-owned affiliates Bend Arch Petroleum Inc., Production Resources Inc. and Oil America Group Corp. The annual financial results clearly indicate that the investment AMEP has made in its majority-owned affiliates is increasing shareholders' value of AMEP."

2006 Outlook

AMEP's majority-owned affiliates will be able to participate in many more oil and natural gas projects because of owning 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 rapidly becoming a very integral majority-owned affiliate of AMEP. Joe Christopher, President of Oil America Group Corp., is currently structuring oil and natural gas partnerships in order to commence drilling of Barnett Shale acreage owned by Bend Arch Petroleum Inc.

About AMEP

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.

Forward-Looking Statements

This press release contains forward-looking statements. All such forward-looking statements are, by necessity, only estimates of future results and actual results achieved by American Energy may differ materially from these statements due to a number of factors. Any forward-looking statements speak only as of the date made. Statements made in this document that are not purely historical are forward-looking statements, including any statements as to beliefs, plans, expectations, or intentions regarding the future. Risk factors that may cause results to differ from projections include, without limitation, loss of customers, inadequate capital, competition, loss of key executives, declining prices, and other economic factors. American Energy assumes no obligations to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such statements. You should independently investigate and fully understand all risks before making investment decisions.