VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/19/10 -- Archer Petroleum Corp. (TSX VENTURE: ARK), (the 'Company') wishes to provide the following Operational Update on the Greater Joe Mill Project.
Archer Petroleum has been advised by the Operator, Westerly Exploration, and provides the following update on the Greater Joe Mill Project, situated in West Texas.
Westerly, as the operator, advises that the Hull #1 well located on the Greater Joe Mill Project in Borden County, West Texas has produced as high as 86 bopd (Barrels Oil Per Day) and has averaged over 61 bopd over 30 consecutive production days, and the Operator expects the Hull #1 to continue to improve in both oil and natural gas rates as is typical of these formations.
Based on the success of this initial well the Operator has advised that the second well on the Greater Joe Mill Project is expected to spud within the next 30-60 days.
CEO Victor Barcot states, 'We are very pleased that our initial well in the Permian Basin has been proven a successful producer, and that Archer has reached the significant milestone of achieving cashflow and production through our core assets.'
The Greater Joe Mill Project comprises 4,700 gross mineral acres and has proven reserves of approximately 60 MMBOE per well and includes 29 proven well locations. The project is a low risk, long reserve-life drilling venture designed to provide a stable cash flow base for the development of the Company.
About Archer Petroleum:
Archer Petroleum Corp. is an independent oil and gas company focused on the exploration and development of its assets in North America including the Permian Basin of West Texas and the Bakken Shale area of North Dakota. The Company's shares are listed on the TSX Venture Exchange under the symbol 'ARK'.
Archer holds a 25% net working interest in approximately 4,700 gross acres within the Greater Joe Mill Project in West Texas, with an option on an additional 5,700 gross acres in the area. Archer commenced drilling operations in February 2010 and has plans to drill an additional 2 wells in 2010. An evaluation of oil & gas reserves in the Greater Joe Mill Project has been completed to NI 51-101 standards.
Archer additionally holds a 50% working interest in approximately 1,500 acres in a Bakken Shale play located in North Dakota. Archer's partner in this project is a large private operator with a proven track record of success in the Bakken Shale and drilling operations are expected to commence in late 2010 or early 2011. www.archerpetroleum.com
BOE Presentation: Barrel of oil equivalent amounts have been calculated using a conversion rate of six thousand cubic feet of gas to one barrel of oil. The term 'BOE' may be misleading if used in isolation. A BOE conversion ratio of one barrel of oil to six mcf of gas is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the well head. Total BOEs are calculated by multiplying the daily production by the number of days in the period.
Shareholders and new investors are welcome to contact Tribeca at 1-866-944-8674 to discuss Archer Petroleum.
ON BEHALF OF ARCHER PETROLEUM CORP.
Victor Barcot, CEO
Although Archer believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Archer can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the failure to obtain necessary regulatory approvals, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), and commodity price, interest rate and exchange rate fluctuations. The forward-looking statements contained in this document are made as of the date hereof and Archer undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Archer Petroleum Corp.
(604) 683-7589 (FAX)
Tribeca Capital Partners Inc.