American Petro-Hunter is currently reviewing 3 potential oil production assets for acquisition.
As part of the Company's strategic development plan to meet internal intermediate and long term production goals, production acquisitions based on "proved, developed, producing" (PDP) assets combined with multiple "probable undeveloped drilling" locations (PUD) are undergoing rigorous consideration.
The Company has commissioned third party, reservoir engineering reports on two producing fields in California and one in Kansas which are currently yielding production ranging from fifty to several hundred barrels per day. These existing production scenarios are considered undervalued given their proved developed and probable reserves. Management believes that the most important criterion in evaluating projects of this nature is for them to offer at least 20 development well locations so that should the field at any juncture begin to operate below capacity, the Company can drill offset development locations and deploy upgraded infrastructure combined with the employment of new technologies to optimize any underutilized production opportunities.
Our preliminary assessment has determined that the fields under review all meet the benchmarks as stated above with the potential to offer many PUD locations for future drilling as well as existing, long life reserves which the Company would add to its current daily production from the existing Kansas and Oklahoma wells. The combined production from American Petro-Hunter's currently producing projects alongside the added output from the acquired fields would rapidly propel the Company towards its stated production goals. As the Company pursues a detailed review of these potential asset acquisitions, Management will endeavor to provide periodic updates regarding their ongoing status.
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