Following drilling of the horizontal portion of the well, the NOW-2H was completed and tied in to the existing gas line and tank battery. A period of commercial testing and evaluation is now underway. Production data will be assessed and evaluated from the lateral penetration of the Mississippi limestone formation ("Mississippi Lime") which exhibited excellent oil and gas shows in highly fractured reservoir rock. After the requisite period of testing, the Company will determine whether future reservoir fracture stimulation would prove beneficial as demonstrated with the successful program completed at the NOM-1H well.
As previously reported, an upper sand horizon cut on the vertical portion of NOW-2H showed a substantial oil filled pay thickness which will be perforated and tested once all down-hole development of the Mississippi portions of the well are finished. The significance of this additional perforation will result in co-mingled oil and gas production from the higher zone along with primary production from the Mississippi Lime.
At the Company's NOM-1H well, we continue to successfully pump off hydraulic fluids introduced during the fracture stimulation (frack) in the productive sections of the well. Approximately half the frack fluid load has been recovered to-date. It is important to note that production has not been interrupted during this process as an excellent oil cut appeared almost immediately and has been increasing steadily with oil flowing to the storage tanks on a daily basis. Production is now double what existed prior to the frack and the ultimate goal of the stimulation is to achieve a five-fold increase in the daily oil and gas rates.
Company president Robert McIntosh states, "The NOW-2H well becoming a commercial producer is an important step in the development of the project as we build our daily production from the North Oklahoma Mississippi Project. The process provides our engineering team invaluable knowledge and expertise aimed at delivering the most cost effective way of drilling and completing these well to maximize their potential. So far, our development plans for the future looks very promising for the 4th quarter of 2011 and into our 2012 drilling schedule. Once we are able to co-mingle this latest well and derive its ultimate productive capability, we plan on drilling offsets and implementing the recently gleaned information as part of our projected development scenario for the project."
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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Commenting on this announcement, Red Fork Managing Director, David Prentice, said, "We are pleased to have been able to maintain our independently certified reserves at stable levels for the year ended June 30, 2011 despite lower prices and forward curve assumptions for natural gas."