American Petro-Hunter, Inc., with current production at two sites in Kansas (Poston Project in Trego County, and Rooney Project in Ford County) – and the tenacity of a mole with a nose for oil – has its sights squarely focused on closing the gap within a year to becoming a 1000 barrels of oil equivalent (BOE) producer, and toward this end has announced today further sector penetration with the acquisition of a 25% working interest in an Oklahoma-based prospect (“the Prospect”).
In exchange for 25% working interest and an 80% net revenue interest in the Prospect, AAPH has advanced $52,125 for lease acquisition and 1/4th of initial test well drilling costs, as per the requirements of the Joint Operating Agreement.
With a potential initial production well output rate of 150 barrels per day (BDP), and a sustainable multi-well (40-acre spacing) site capacity, spirits are high moving forward toward test well drilling on this Prospect located in northern OK, which should produce high-gravity light oil above 3800. Site prep work and road construction are proceeding apace, with an imminent (days) spud date (the day when drilling begins), and personnel just waiting for the rig to arrive.
Backed by strong Chinese demand, as well as other emerging markets, oil keeps trending upwards, and the declining dollar has made the crude market sweeter than ever, silencing many who have expressed concerns over relatively high supply levels.
As China sets records for oil importation (just last month again nearing records for oil consumption), infrastructural development continues unabated to sustain and drive this demand spike, creating a huge export market for domestic producers like AAPH.
The Company is dedicated to achieving laser-like focus on the goals it sets, and is firmly committed to further exploration and production growth within the industry, confident that domestic oil and gas production can provide “essential near-term” stabilization which will drive an American-made economic recovery and re-invigorate our production economy, leading to solidity within the financial system.