American Petro-Hunter has added substantial force to its overall growth vector as an oil and gas producer, and is today reporting completion of swab testing on the latest well in an ongoing series of wells at the Company’s North Oklahoma Yale Prospect, the NOS122, declaring the well ready for full commercial production.
The NOS122 adds one more node to the rapidly evolving AAPH production network, which also includes the producing Poston Project in Trego County, Kansas. The Company looks to be within striking distance of its 12-month production growth target of 1k BOE.
President and CEO of AAPH, Robert McIntosh, cited the low-cost implementation of the NOS122, imminent production at exceptional rates and future potential of the Skinner formation as momentum-drivers for the Company. McIntosh emphasized the presence of gas in the resource and absence of water to dispose of, delineating the profitability curve for such development nicely and clearly signaling to shareholders that AAPH intends to deliver on precisely what it has promised.
The NOS122 has several excellent characteristics:
• Re-entry project, well bore and casing opened and cleaned, testing showed high gravity oil swabbed at a final rate of 120 BOPD equivalent (5 barrels/hr) at 2,700 feet and sits on a 160 lease block with the potential for three additional offset locations
• Skinner zone adds to the Woodford/Mississippi formations currently being tapped by the project’s three other developed and producing wells, the Company is moving to secure
• Skinner Formation target is a historical over-producer with initial production rates at analogous nearby wells showing 700 BOPD rates and cumulative production of 80k barrels from a 3-foot slice of sand
• NOS122 showed 100% oil cut in a 6-foot sand interval and AAPH is projecting a production rate that will the 120 BOPD test rate
With a 50% working interest, AAPH is moving quickly with its partner who holds the other half of the WI, to implement the final equipment required before scheduled commercial production will begin, consisting of the pump jack, tubing and tank battery hook ups.
The Company’s engineering team has also prepped a special multi-stage surge frack for the nearby NOS227 and plans to have local operator Basic Well Services out of Cushing implement the frack in two days on the 4th of May. Initial production for the NOS227 is projected to be 300 BOPD and the Company plans to release a progress report with updated information shortly after the 4th.