SCOTTSDALE, AZ -- (Marketwire) -- 06/23/10 -- American Petro-Hunter, Inc. (OTCBB: AAPH) ('American Petro-Hunter' or the 'Company') today wishes to provide an operational update regarding progress at the three oil well locations on the Company's newly acquired leases in Oklahoma. Management reports that it is in production at the first well and is preparing two additional wells for production. The Company further advises that it has acquired a working interest participation of between 20 and 50% in 7 lease blocks that are within the A.M.I. of the North Oklahoma Project.
As reported earlier, the No. 1 well was drilled and completed and has been put into commercial production with initial production rates anticipated, following recovery of all the fracture fluids, to be in excess of 350 barrels per day of high gravity light oil. The 3700 barrel frac is nearly recovered and the well is increasing in oil cut on a daily basis. The engineering team, the operator and Company believe that July production should be in the 9,000 barrel range for the month. The associated gas expected at 50-60 MCF per day is being hooked up to the purchaser's pipeline and the gas revenue alone should pay for the monthly operating costs of the well.
At the No. 2 well location, the well has been cased, perforated and is today undergoing acidizing of the 48 foot pay zone. The next step is a scheduled fracture stimulation program slated for July 1st. A timeline similar to the No. 1 well is anticipated with the fracture stimulation of the well, pumping back the load and the installation of facilities taking approximately 2-3 weeks prior to the onset of commercial production.
At the NOK#3 location, drilling operations at the well site have commenced and the Company will report updates as they are made available from the operator.
With the recent acquisition of 3 additional blocks increasing the Company's overall working interest participation up to 7 lease blocks currently, the North Oklahoma Project is becoming a play that the Company believes will involve the drilling of at least one well per month with continued drilling through 2011. At this juncture the project focuses on vertical wells, however, subject to an engineering review the possibility exists that the formation may prove amenable to horizontal drilling in order to maximize future production and costs.
The Company feels the North Oklahoma Project represents a low risk, high probability of success play that will provide a predictable revenue stream from the long life production of commercial oil wells.
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 to begin 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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