American Petro-Hunter continues to add expectation-breaking nodes to the Company’s oil and gas production network, reporting exceptional performance today in production testing and evaluation, which was conducted over the past few weeks on the recently completed NOS122 well.
The NOS122 is located in the Yale Prospect at AAPH’s prolific North Oklahoma Project. Targeting a premium 6-foot pay zone in the Skinner Formation, the NOS122 has been pulling high gravity light oil to the storage tank for a few weeks now and the oil cut has been consistently over 90% with moderate gas.
President of AAPH, Robert McIntosh, was pleased to see production from the NOS122 in the 50-70 BOPD range and brought up the operator’s suggestion that the daily output rate from the pay zone would benefit significantly from a light fracking; a move wholly consistent with other operations in the area targeting the Skinner.
With a 50% working interest and regional powerhouse Sunoco buying up the all oil produced, AAPH is in a very good position with the NOS122 and the other producing or under development sites in the North Oklahoma Project. This position will improve as the fracking plan devised by the Company’s partners is implemented and the three previously identified offsets are fully explored for their production potential.
These three offsets represent major additional drilling opportunities within the some 160 lease block able to target the Skinner. The Company is aggressively pursuing due diligence with regard to acquiring all useful acreage in order to maximize this particular zone and the associated targets. This leasehold is rapidly emerging as one of AAPH’s leading production assets and with the full tank battery, plus associated production facilities wrapping up construction and coming online in the immediate future, the Company is eager to start selling oil prepared from the storage tank.
The very first sales of oil from the NOS122 to Sunoco are anticipated within days. The Company intends to release another update on developments as the fracking is completed and new production rate data is available.
American Petro-Hunter is rapidly approaching the defined strategic goal of becoming a 1k BOE annual producer. With significant production/development in Kansas at the Colby and Poston Oil Projects, as well the Sacramento Gas Project in California, AAPH has a very diverse footprint that benefits from escalating energy prices and domestic demand. As a North America-focused energy developer, AAPH is in a very stable window among developers this size and has exceptional logistical fluidity when it comes to ramping up development or bringing product to market.
For updates and more information on the latest developments at American Petro-Hunter, Inc., please visit the Company’s website at: www.americanpetrohunter.com