Point Roberts, WA – January 21, 2011 - The Investorideas.com Energy Newswire makes the recent Newsletter and Message from Robert McIntosh, the President of American Petro-Hunter Inc (OTCBB: AAPH ) available to oil and gas investors.
Full Newsletter at: http://americanpetrohunterinc.com/about/newsletters/aaph-newsletter-january2011.pdf
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MESSAGE FROM THE PRESIDENT
The New Year is fully upon us and I am enthusiastic regarding the prospects for the Company. Given the steadily increasing price of oil to over $90 a barrel we have seen an eruption of activity in the area neighboring our flagship North Oklahoma Project. We view the current price of crude and the quality of the Woodford Shale play coming together as a driving force that should make 2011 our best year to date.
Domestic shale energy plays have become so plentiful that it is difficult to think of them as unconventional anymore. Shale formations such as the Bakken, Fayetteville, Marcellus, Barnett and others have become household names in the oil and gas industry and now Woodford Shale drilling activity has skyrocketed since Devon Energy drilled its first wells in 2005.
American Petro-Hunter is right in the thick of the activity as the Woodford has emerged as one of the Lower 48’s biggest producers, ranking second nationwide in gas production and fifth in oil production. Oklahoma has some 90,000 wells and is home to major independent producers like Devon Energy, Chesapeake Sandridge, Petrohawk Energy, Southwestern Energy, Marathon Oil, Newfield Exploration and Continental Resources. The Woodford has seen 1,200 wells drilled in the past 7 years with production of over 1.4 million barrels of oil and 560 billion cubic feet (Bcf) gas.
With our NOJ26 oil well going on pump as of December 23rd, we were very pleased to add the output from our 2nd commercial producer at the North Oklahoma Project. Now, planning for 2011 is full speed ahead as offset location targeting and engineering are complete for our next vertical well designated NOS227. The new well is planned for a depth of 4,000 feet and is a direct offset to the NOJ26 location thereby taking advantage of favorable oil producing geological trend up dip and to the west of where the productive Woodford and Mississippi Formations are the primary objective.
As our project evolves and continues to grow, the next step in the continued development of the Company-held leased lands will be the drilling of horizontal wells designed to properly exploit the thick, Woodford Shale targets in the area. The cost of a completed horizontal with a 2,000 foot lateral is estimated at $1.75 million - but the payout, if production of 500 barrels (or more) per day is achieved, would equate to a very rapid return on investment and provide immediate, significant cash flow.
As reported last year, the southern part of our lease block has room to drill up to 5 horizontals and also up to 25 conventional vertical wells, so we have ample targets to exploit throughout 2011. With one more vertical well planned prior to drilling our first horizontal, not only revenues, but valuable information and knowledge of the underlying geology and nature of the Woodford will be obtained, ultimately leading to a much greater probability of future successes within this reservoir which currently offers literally untapped potential.
At the same time, news is emerging regarding competitors in the immediate area of our leased land positions that are planning to commence the drilling of a horizontal funded by a major oil company. As information on this project becomes available, we will closely follow their activity and watch for results as we commence drilling our vertical offset well. This nearby project will be the first Woodford Shale horizontal drilled in this part of Payne County and we hope that ours will be the second.
All of our previously stated short term and intermediate goals for strategic production levels can easily be met through the diligent development of the Woodford Shale play alone. If the explosion of activity at other shale basins like the Bakken and Barnett are any indication, we are going to see a frenzy of activity in 2011 and we are happy to be a big part of the shift in industry mindset to “Shale Oil, the NEW American conventional oil!’
President & CEO
American Petro-Hunter Inc.
Read the full Newsletter at: http://americanpetrohunterinc.com/about/newsletters/aaph-newsletter-january2011.pdf
About American Petro-Hunter, Inc. (OTCBB: AAPH)
American Petro-Hunter, Inc. (OTCBB: AAPH) is a goal-oriented exploration and production (E&P) Company aiming to become an intermediate level oil and gas producer within 12 months. The Company is in production at the Poston Project in Trego County Kansas with new drilling activity and production underway at the North Oklahoma Oil Project. With the achievable target of becoming a 1000 BOE producer as our goal, American Petro-Hunter is actively on the "hunt" for domestic petroleum assets.
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