American Petroleum is a bonded and approved operator with the State of Texas and currently has more than 200 wells under management. American Petroleum operates wells in 5 out of 12 Districts in the State of Texas, where it provides a variety of operational services on a menu-type fee basis. Services include Basic Accounting, Land Administration, Regulatory Consulting and Reporting, Engineering, Environmental, Pumping and Drilling Supervision and Marketing. American Petroleum implements these services through a vast network of sub-contractors and consultants, thereby minimizing the staffing requirements to maintain a large operation. All sub-contract costs are passed through to the producer on a cost-plus basis. AP's compounded growth rate and positioning affords the Company to capitalize on acquisitions in strategic areas of interest and therefore creating more opportunities for investors to participate.

American Petroleum Goals
The Company seeks to minimize its overhead and capital expenditures by subcontracting the drilling, redrilling and workover of wells to independent drilling contractors and by outsourcing other services. The Company typically compensates its drilling subcontractors on a turnkey (fixed price), footage or day-rate basis depending on the Company's assessment of risk and cost considerations on each individual project. The Company continues to seek strategic alliances with service and equipment companies, technological companies, and industry partners to maximize every dollar invested and diversify our risk.