American Petro-Hunter, Inc. announced that the SOM-1H Mississippi Lime horizontal oil and gas well at the Company's South Oklahoma Project has been successfully completed and fracked and began production to both the oil storage tanks and gas pipeline on July 10th.
Currently, the well is undergoing a period of production testing to determine a stable rate of both oil and gas from the over 2,500 feet of lateral penetration into the Mississippi Lime reservoir. It is anticipated that over the next several weeks the well will, in conjunction with the pumping off of approximately 25,000 barrels of frack load, exhibit high I.P. (initial production) flush daily rates followed by a period of stabilization.
The SOM 1-H well is the first well drilled on the Company's South Oklahoma Project that now covers approximately 5,300 gross acres of leases underlain by the thick Mississippi Lime in an area which has enjoyed a well-documented and lengthy period of historic production from vertical Mississippian wells. As it is the first well drilled by the Company on the lease block, the Company and partners are being extremely careful and prudent to not push the well too hard in order that the oil and gas productive fractures can become established for a long term production scenario.
As reported earlier, the SOM-1H encountered excellent oil and gas shows which include numerous sections of live oil over the shaker and sweet high B.T.U. gas shows with very rich and high concentrations of ethane and propane (valuable heavy liquids). The most recent horizontal Mississippian well completed in the North Oklahoma Project had 1469 BTU gas. The operator of this project has been able to re-negotiate the gas sales contract for the South Oklahoma Project which should result in a sell price in excess of $6.50/MCF which would cover any and all future operating costs of the well.
Company President Robert McIntosh stated, "We are extremely pleased with the results of the drilling, fracking and initial testing of the SOM-1H well as it marks the Company's first horizontal well on the South Oklahoma project lease block. This success which has led to commercial production has confirmed the existence of the Mississippi reservoir under our leases and now plans for additional wells and offsets are set to begin. With the recently announced $10,000,000 credit facility through ASYM Energy Partners LLC which propels the Company ahead through the provision of development drilling capital as well as additional operational, technical, engineering and financial expertise, we now enthusiastically believe the prospects for our leasehold position in Oklahoma can begin to offer tremendous upside for our stakeholders."
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