American Petro-Hunter today announced that the Company has now reached the final stage of the ongoing well completion program of the NOJ26 oil well at the North Oklahoma Project. The well is currently undergoing preparations to commence commercial production.
The final stage of the completion program is underway and involves the acidization and a light fracture stimulation of the upper Mississippi oil pay zone formation. Once the program is concluded this week, the well will be put on pump for immediate production. Scheduling is on track and facility infrastructure is readied for production and shipment of oil for sale.
As reported earlier, NOJ26 encountered a 40 foot oil pay zone in the Mississippi formation. The Company and operator are encouraged by data at two analog wells producing from the same formation less than 1/2 mile away which have cumulatively yielded 46,000 barrels of oil and .75 BCF gas to date. It is anticipated that NOJ26 will produce an early flash of oil greater than 100 barrels per day followed by a period of well stabilization. The true test of the well and its subsequent flow rates will be based on the actual quantity of oil sent to the tanks over the upcoming weeks and months ahead.
Company President Robert McIntosh states "with the recent increase in the price of oil to over $89 per barrel, the Company is very confident that we will have a commercially viable well on pump very soon which, if it produces as anticipated at more than 100 BPD for the initial production period, it could net the Company an additional $120,000 per month beginning in 2011 and pay out within three months. We are already moving ahead and have engineered our next offset location near to the NOJ26 and are scheduling a near term spud date expected for early January."
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