American Petro-Hunter has executed a Purchase and Sale Agreement which entitles American Petro-Hunter to acquire a 40% Working Interest in a minimum of 3,000 acres of lands in South-Central Oklahoma. The Company has designated the new acreage as the "South Oklahoma Project."
The acreage covers highly prospective Mississippi Limestone targets which, through detailed sub-surface geological mapping and extensive engineering, show Mississippi targets similar and analogous to the recently discovered oil and gas reservoir now being exploited at the North Oklahoma Project. Based on the commercial success of the NOM-1H horizontal well, and the Company's recently announced development plan for the Northern project area which includes an additional 11 horizontal wells, the new South Oklahoma Project offers considerable opportunities to increase the Company's presence in this increasingly important and highly productive region. Additional lands may be acquired and added to the 3,000 acres as leasing is ongoing.
Currently, the Company and engineers have identified 5 key areas under the 3,000 acres which, if developed on 160 acre spacing, could allow future development of 18 additional locations for horizontal wells. Over the next several months, targets will be refined and prioritized with plans to spud the first well in late 4Q or early 2012. The Northern and Southern project development strategy aims for synchronized operations with new drilling commencing every other month, thus ensuring a continuous area wide drilling program throughout the next 24 to 36 months.
Company President Robert McIntosh stated, "By adding these new South Oklahoma projects to our asset base, the Company forecasts the regional drilling of up to 29 horizontal wells in the future which, based on the results we have seen to date, will give American Petro-Hunter a key presence in the emerging Mississippi play and demonstrates that growth by the drill bit is a formula for success in Oklahoma."
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