2010-04-08-2010-03-04

To acquire company with 1,500 acres in South Texas.

Emerald Bay Energy Inc., Calgary, (Toronto Venture: EBY) and a privately held, unnamed company plan to acquire Production Resources Inc., a subsidiary of American Energy Production Inc., Mineral Wells, Texas, (OTCBB: AENP) for US$850,000 in cash and stock.

Petroleum Resources owns more than 1,500 acres across the Olmos and Escondido formations in South Texas. The acquisition includes all of Production Resources' lease acreage and equipment.

American Energy will retain a 1% overriding royalty on any oil or natural gas found below 1,200 feet deep. The company says the sale will allow it to focus on its oil and gas operations in North Texas as well as its gold property in California.