Management of PRI has re-worked or re-equipped 30 oil wells with either new electric motors, new rods or tubing the last two weeks of December, anticipating treating these oil wells with AMEP HOA-800, the new heavy oil additive being tested by American Energy Production Inc. on heavy oil Olams formations wells located Medina County, Texas. These 30 wells bring a total of 125 wells ready to produce oil.
Five oil wells have been treated with the new heavy oil additive in a five-point test. The initial results indicate two oil wells are producing five barrels of oil each and two of the oil wells pressured up in the formation and will have to be re-treated.
The potential proven produceable oil reserves on the PRI oil properties is approximately 62,000,000 barrels, and the Company believes only about 2% to 4% of these oil reserves have been produced over the last 20 years. AMEP plans to eventually treat all 193 of the oil wells and then have an ongoing treatment program.
Charles Bitters, President of AMEP said, "The more oil wells we treat with AMEP HOA-800, the more excited we get about the new heavy oil additive." Mr. Bitters also stated, "The purchase of the PRI properties along with the opportunity to use the AMEP HOA-800 additive on these properties will allow the Company to add tremendous value to AMEP in a very short time. With the price of CRUDE OIL closing at $33.40 today AMEP believes the future is NOW."
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