The Olmos Project is managed by American Energy Production's subsidiary Production Resources, Inc. and is a 1500 acre lease in South Texas, nine miles to the south of Hondo, Texas. The lease sets atop several known oil and gas bearing formations one of which is the Olmos formation. The Olmos is a heavy oil impregnated sandstone formation that is approximately 20 to 40 foot thick and is a blanket formation across the lease.

The project consists of more than 180 wells and each well is unique in its ability to produce oil based on the gravity of oil, the porosity of the formation, and the amount of gas drive in the formation around each well. Currently a number of study's are underway to better understand the formation in an effort to increase production.

Above the Olmos is the Escondito formation which is virtually an identical formation that has yet to be produced. All of the wells on the lease were drilled through the Escondito and into the Olmos formation. To date none of the wells on the lease have been completed in the Escondito.