SCOTTSDALE, AZ -- (Marketwire) -- 07/29/10 -- American Petro-Hunter, Inc. (OTCBB: AAPH) ('American Petro-Hunter' or the 'Company') today wishes to provide further details of the Company's North Oklahoma Project, and discuss the ongoing development plan for the 7 leases totaling over 1,000 acres located in Payne County, near Stillwater, Oklahoma.
Shale oil plays have become the source of considerable domestic onshore production over the past few years as the technological refinement of horizontal drilling techniques and the use of fracture stimulation programs designed to liberate the oil from the shale formations has increased dramatically. Recently, shale plays of magnitude in similar shales such as the Bakken and Green River formations are showing the best results from horizontal wells. American Petro-Hunter believes that its working interest participation in the Oklahoma project has the potential to become a large shale oil play offering stable long life reserves and predictable production.
The North Oklahoma Project has several prospective locations and the minimum 640 acres required to drill a 2,000 foot horizontal well and the operator is currently developing the engineering data and cost analysis in order to commence operations. Additionally, the Company has been presented with an opportunity to participate in another regional prospect offering a horizontal play scheduled to commence in September. The potential of a successful horizontal well in the Oklahoma shale has been estimated at between 1,000 and 1,200 barrels per day. It is the Company's goal to participate in, drill and complete wells of this magnitude which would assist in meeting our stated goals and objectives.
Regionally, significant shale oil projects have been developed within the Bakken Formation which encompasses 200,000 square miles of the subsurface of the Williston Basin, covering parts of Montana, North Dakota, and Saskatchewan, Canada. A report by the USGS estimated the amount of technically recoverable oil within the Bakken Formation at 3.0 to 4.3 billion barrels. The state of North Dakota also released a report which confirms these numbers. Along with the Green River Formation which covers portions of Colorado, Wyoming and Utah, these oil shales indicate vast reserve potential.
Currently at the North Oklahoma Project, all efforts to prove the presence of a large shale reserve have been positive. Preliminary operations and initial drill testing of the potential within a 48 foot thick shale pay zone calculated to produce commercial quantities of oil have been successful to date. The No. 1 Well has been tied in to the storage tank battery, gas lines have been connected, and a gas sample has been provided to the purchaser. As reported previously, the well was acidized and producing at 75 BPD rates. Now that the fracture stimulation program is complete, the well requires tie-in to a water disposal well prior to fully achieving the stable rates anticipated. The No. 2 and 3 Wells are currently in varied stages of work and the Company anticipates bringing additional production online in August.
Company President Robert McIntosh states, 'Our initial efforts lead us to believe that we have real potential in the Oklahoma shale. The opportunity to participate in horizontal drilling gets us on track to quickly achieve some significant production goals. All the data looks good and we know the oil is in place, so now is the time to get on with the drilling.'
About American Petro-Hunter, Inc. (OTCBB: AAPH)
The Company is a goal-oriented exploration and production (E&P) Company aiming to become an intermediate level oil and gas producer within 12 months. The Company is in production at the Poston Project in Trego County and at the Rooney Project in Ford County, Kansas with new drilling activity and production underway at the North Oklahoma Oil Project. With the achievable target of becoming a 1000 BOE producer as our goal, American Petro-Hunter is actively on the 'hunt' for domestic petroleum assets. 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, the development, costs and results of our exploration program at our properties and any anticipated future production. 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-KSB for the most recent fiscal year, our quarterly reports on Form 10-QSB 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.
To find out more about American Petro-Hunter, Inc. (OTCBB: AAPH), visit our website at www.americanpetrohunter.com
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