SCOTTSDALE, AZ--(Marketwire - July 16, 2012) - American Petro-Hunter, Inc. (
Currently, the well is undergoing a period of production testing to determine a stable rate of both oil and gas from the over 2,500 feet of lateral penetration into the Mississippi Lime reservoir. It is anticipated that over the next several weeks the well will, in conjunction with the pumping off of approximately 25,000 barrels of frack load, exhibit high I.P. (initial production) flush daily rates followed by a period of stabilization.
The SOM 1-H well is the first well drilled on the Company's South Oklahoma Project that now covers approximately 5,300 gross acres of leases underlain by the thick Mississippi Lime in an area which has enjoyed a well-documented and lengthy period of historic production from vertical Mississippian wells. As it is the first well drilled by the Company on the lease block, the Company and partners are being extremely careful and prudent to not push the well too hard in order that the oil and gas productive fractures can become established for a long term production scenario.
As reported earlier, the SOM-1H encountered excellent oil and gas shows which include numerous sections of live oil over the shaker and sweet high B.T.U. gas shows with very rich and high concentrations of ethane and propane (valuable heavy liquids). The most recent horizontal Mississippian well completed in the North Oklahoma Project had 1469 BTU gas. The operator of this project has been able to re-negotiate the gas sales contract for the South Oklahoma Project which should result in a sell price in excess of $6.50/MCF which would cover any and all future operating costs of the well.
Company President Robert McIntosh states, "We are extremely pleased with the results of the drilling, fracking and initial testing of the SOM-1H well as it marks the Company's first horizontal well on the South Oklahoma project lease block. This success which has led to commercial production has confirmed the existence of the Mississippi reservoir under our leases and now plans for additional wells and offsets are set to begin. With the recently announced $10,000,000 credit facility through ASYM Energy Partners LLC which propels the Company ahead through the provision of development drilling capital as well as additional operational, technical, engineering and financial expertise, we now enthusiastically believe the prospects for our leasehold position in Oklahoma can begin to offer tremendous upside for our stakeholders."
About American Petro-Hunter, Inc. (
The Company is an exploration and production (E&P) Company focused on the acquisition and horizontal development of the Mississippi Lime and Woodford oil formations located in Oklahoma and Kansas. The Company operates from its offices in Wichita, Kansas. 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, scope and type of consulting services provided by ASYM, use of proceeds, future acquisitions, success of projects, growth and strategic plans. 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-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
ON BEHALF OF THE BOARD
American Petro-Hunter, Inc.
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President & C.E.O.
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