American Petro-Hunter, Inc. (OTCBB: AAPH) (“American Petro-Hunter” or the “Company”) updates activities regarding the drilling of the newest Rooney Project Well. This will be the third in a series of development wells to be drilled at the newly discovered oil reservoir in Western Kansas. The well has been identified as the #3 Rooney and is the latest in a series of 10 wells planned for drilling in 2010 at the Rooney Project.
The Company is moving quickly towards a spud date and is in the process of acquiring the requisite surface drilling permit from the State in order to immediately begin site preparations and rig mobilization at the well location. The partners plan to move the drilling rig to a location that directly offsets the producing #24-1 Double H well. This location represents the highest probability of success to drill another producer similar to the Double H well and if the new location intersects similar pay and pressures as the Double H, the two-well combination may be capable of producing 400 Barrels per day when stable rates are achieved.
As the drilling success builds, we plan to continue the program by stepping out in a grid pattern to maximize the oil production potential and maintain reservoir integrity.
American Petro-Hunter remains fully committed to drill at least one well per month in order to develop the newly discovered reservoir at Rooney. Results from 3 hydrocarbon bearing zones encountered in the Shelor test well are currently being analyzed and compared to the suite of electronic well logs which indicate the reservoir trends towards the newly chosen drilling location.
The Company is also pleased to report an ongoing data review of several high quality production projects in Kansas and Oklahoma. The projects are currently producing in the 100-150 BOE range with ample development drilling locations. We are confident that with the developing oil production position at Rooney and Poston combined with a strategic acquisition, the net result could have American Petro-Hunter easily reaching its goal of 500 BOE by June and 1000 BOE by the end of 2010.
About the Rooney Project:
The Rooney Project is located in southwestern Ford County, Kansas 20 miles due south of Dodge City and totals 7,040 acres adjacent to the north edge of existing Morrow Sand oil and gas production. The initial discovery well, #24-1 Double H commenced commercial production in January. The potential barrels of oil associated with the discovery well and underlying oil pool are currently estimated at 500,000 barrels and the Company feels the potential for the newly discovered reservoir is 3,000,000 barrels of oil. The Company and partners have developed a minimum of 10 target locations to drill that could add 10 additional wells to our portfolio by the end of the fourth quarter of 2010 at a planned drilling schedule of one new well per month. The operator of the project is S&W Oil & Gas, LLC of Wichita, Kansas. The purchaser of the oil production at Rooney is N.C.R.A. of McPherson, Kansas.
Disclaimer: No position in the stock of AAPH; see disclaimer page.
