Compass Capital Group to Fund up to $5 Million for American Energy Production Inc.Energy Editors/Business Editors MINERAL WELLS, Texas--(BUSINESS WIRE)--Feb. 10, 2004 American Energy Production Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :AMEP AMEP Adult Migrant English Program AMEP African Middle East Petroleum Co. AMEP Asymptotic Multi-User Error Probability AMEP Association for Medical Education in Pakistan AMEP Automated Missile Engagement Planner ) announced today the Company has agreed to an equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. with Compass Capital Group to fund up to 5 million dollars for new oil and gas exploration and secondary oil recovery operations on AMEP existing properties. The $5 million dollar funding will also allow the continuation of AMEP's aggressive oil and gas income property acquisition campaign. Compass Capital Group has made a further commitment to play a key role as investment banker Investment Banker A person representing a financial institution that is in the business of raising capital for corporations and municipalities. Notes: An investment banker may not accept deposits or make commercial loans. and advisor on the future operations of American Energy Production Inc. This infusion of capital will enable American Energy Production Inc. to enhance the AMEP HOA-800 heavy oil additive treatments on the wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. Production Resource Inc. properties. PRI PRI: see Institutional Revolutionary party. (Primary Rate Interface) An ISDN service that provides 23 64 Kbps B (Bearer) channels and one 64 Kbps D (Data) channel (23B+D), which is equivalent to the 24 channels of a T1 line. will now be able to acquire larger and more efficient injection pumps to treat the 193 Olmas oil wells. Production Resources Inc. could potentially be pumping between 400 to 800 barrels of oil a day by the end of 2004. With the market price of oil above $30.00 per barrel, the PRI properties could have revenues in excess of $4,500,000 per year. In addition, this capital infusion Capital infusion Often refers to the cross-subsidization of divisions within a firm. When one division is not doing well, it might benefit from an infusion of new funds from the more successful divisions. will allow American Energy Production Inc.'s wholly owned subsidiary, Bend Arch Petroleum Inc., to ramp up Ramp Up To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale the re-working and stimulation of the Marble Falls Unit in North Central Texas. These properties have 3,000 acres of proven oil and gas formations including the 3,500-foot Barnett Shale formation that is present over the entire property. Immediate plans will be to fracture stimulate the Barnett Shale formation to determine it's productive potential. Charles Bitters, President of American Energy Production Inc. stated, "AMEP is very fortunate to secure this funding from Compass Capital Group, this financing will allow the Company to expand oil and gas operations at a faster pace than previously anticipated." 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 the 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 exposed or unknown factors could cause actual results to materially differ from the result, performance, or expectations exposed or implied by such forward-looking statements. |
|
Printer friendly
Cite/link
Email
Feedback
Reader Opinion