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
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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