American Petro-Hunter reported that the #1 Lutters Well is expected to commence commercial oil production today. Site preparations were slightly delayed due to wet weather which impacted our previously announced schedule.
Once the pump jack installation is completed today, the well is slated to begin pumping oil with an anticipated Initial Production Rate (I.P.R.) of over 100 BOPD. The Company will report when further data on daily rates are received from the operator and will closely monitor production over the next 30 to 60 days. Predicting actual rates is approximate and the total barrels per day produced may exceed or be less than calculated, therefore oil pumped to the tanks is the most accurate assessment of any early stage producer.
As reported previously, due to the expectations of increased oil production an additional storage tank may be required at the site battery in order to allow for 600 barrels of oil storage capacity. N.C.R.A. (National Co-op Refinery Assoc.) of McPherson, Kansas, will purchase all production at the Lutters lease.
About the Prospect
The #1 Lutters well targeted oil production in the Mississippi Dolomite and/or Cherokee sands. The location showed a significant 3D Seismic anomaly pinpointing an oil bearing zone. In addition, the 750-acre lease block has the potential for a multi-well program with 2 to 3 offset locations possible to fully exploit the acreage. Engineering estimates of the potential production from the indicated pay zone is between 35 and 100 barrels per day from a successful well. Full development of the field could produce up to 400 BOPD of light oil. There is excellent transportation and support infrastructure in the area easily supporting a requisite storage tank battery at the location.
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