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Wednesday, April 13, 2011

Oil and Gas Trading Alert; American Petro-Hunter (OTCBB: AAPH) NOS227 Oil Well Completion on Track Amidst Resurgence of "Big Oil" in Oklahoma

SCOTTSDALE, AZ - April 13, 2011 (Investorideas.com Energy Newswire) - American Petro-Hunter, Inc. (OTC.BB:AAPH) ("American Petro-Hunter" or the "Company") is pleased to announce that while the recent rise in oil prices to over $112 a barrel has spawned an upsurge in activity likened to the "Return of Big Oil to Oklahoma," the operators of the NOS227 well report their excellent relations with contract well service providers have ensured scheduled well completion operations are on track at the North Oklahoma Project.
The "multi-stage surge frack," designed by the engineering team is to be implemented by Basic Well Services of Cushing Oklahoma. This rig service company has extensive expertise in successfully completing both vertical and horizontal wells in the Mississippi formation in both Oklahoma and Kansas.
Management believes the frack will result in the well producing oil at an Initial Production Rate ("IPR") of 300 barrels of oil per day (BOPD). Once the production rate has been established over several weeks, the Company plans to commence drilling an additional vertical offset well and enjoys the latitude to drill up to an additional 15 wells on the Yale Prospect lease component of its North Oklahoma Project.
American Petro-Hunter is simultaneously finalizing plans for its first horizontal well on the nearby "Ripley Prospect." The acreage is located in 100 foot thick sections of Mississippi in an area experiencing aggressive exploitation by major operators investing heavily in laterally drilled, horizontal wells.
The Mississippi has produced 317 million barrels to date, and given the known data is a low reservoir risk opportunity. With under $2.5 million in drilling costs per well, many rigs are already mobilized with more on the way. Examples of regional wells such as the Eagle Energy LLC Avard 1H-31 which made 922 barrels in the first 24 hours and gas at 4.5 MMCF as well as Range Resources two Mississippian horizontals tested in a 24 hour period at a combined 1,314 BOE per day have energized the play.
In the media, Oil and Gas Investor Magazine recently reported in its April edition that in February there were 19 rigs drilling horizontal wells in the play with reports that companies such as Sandridge Energy plan to drill 138 horizontal wells this year at a cost of $248 million.
As previously reported by the Company, the Calyx C&N 25-1H well a mile and a quarter from the Ripley lease has been speculated to have had initial production rates (I.P.) of 1,000 barrels per day (BPOD). It is common knowledge that these horizontal wells can generate higher reserves than vertical wells which historically produce in the 30,000 to 50,000 barrels per location range. Data shows that horizontal wells offer four to five times the production in the 150,000 barrel per well range.
Company President and C.E.O. Robert McIntosh states, "The regional Mississippi Play has become extremely busy with the recent news of large wells being brought online and the sheer number of wells being drilled and completed. We have been prudent in securing our drilling contractors and well service companies in advance and will meet our scheduled timetable for the 2011 drilling program, despite the upsurge in the midst of the recent oil boom."
Mr. McIntosh continues, "We are working with our partners to finalize the plans, permitting and A.F.E.s on our 2,000 acre Ripley Prospect. A location for the first Mississippi horizontal has been engineered and proposed. We have been advised that a 1,500 to 1,800 foot lateral well along the Mississippi will exploit a 320 acre parcel near to the Calyx operations and we hope to announce a spud date shortly."
About American Petro-Hunter, Inc. (OTCBB: AAPH)
The Company 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. Visit us at: www.americanpetrohunter.com
Notice Regarding Forward-Looking Statements
This news release contains "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of our exploration program at our properties and any anticipated future production. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with petroleum exploration and development stage exploration companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-KSB for the most recent fiscal year, our quarterly reports on Form 10-QSB and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
ON BEHALF OF THE BOARD
American Petro-Hunter, Inc.
Robert McIntosh
President & C.E.O.
To find out more about American Petro-Hunter, Inc. (OTC.BB:AAPH), visit our website at www.americanpetrohunter.com
Contact:
Investor Relations:
Mountainview IR Services, Inc.
1-888-521-7762
investors@americanpetrohunterinc.com
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