American Petro-Hunter Updates on Kansas Oil, California Gas Projects
American Petro-Hunter has noted the projected drilling schedule for the #1 Lee 18AB at the Brinkman Prospect in Clark County, Kansas as well as for the first exploratory gas well at the Victory Gas Project, south of Sacramento, California.
The Company has been informed of a firm spud date at the Brinkman-based #1 Lee 18AB oil well targeting July 25th. The 5,400 foot well should take approximately 5 days to drill and if successful, subsequent completion and construction of site infrastructure could have the well in production by the end of August. The Brinkman Prospect is located approximately 20 miles south of Dodge City on leases totaling 1,760 acres that straddle the Clark-Meade County line.
As previously announced, the Brinkman Prospect is directly north of oil production in the Marmaton Limestone and Morrow Sand formations where over 49,000 barrels and over 1 BCF gas have been produced from a seismic anomaly to the northeast of the chosen drilling location. The Company believes that the drill test targets a very promising structure as identified by 3D seismic data in the Marmaton Limestone.
Management further believes that if a commercial well is established at Brinkman, an additional 3 wells could be drilled in order to fully exploit the lease based on the size of the seismic anomaly.
Additionally, the Company also wishes to report that as a result of highly prospective 3D seismic findings, the Victory Gas Project is slated for drill testing of the first planned target which shows a potential to contain over 3.67 BCF gas. The operator of the project has informed the Company a tentative spud date will be set immediately following the completion of requisite permitting and site preparations which is estimated to require approximately four weeks to conclude. The schedule therefore targets commencement of drilling shortly after Labor Day in early September.
About the Brinkman Prospect
The 1,760 acre Brinkman Prospect is north of historic oil production from primarily Marmaton Limestone and Morrow Sand formations. Over 49,000 barrels of oil has been produced from a seismic anomaly to the northeast of the first drilling location as well as 1 BCF of gas production from Langdon Sands. The prospect will be drill testing a structure associated with the Marmaton delineated by 3D seismic targeting both light oil and natural gas. The Brinkman contains a potential multi-well program and engineering estimates place the potential oil production from the indicated pay zone at between 40 and 100 barrels per day along with associated natural gas from a successful well. Full development of the field could produce between 300 and 400 BOPD of 44 degree light oil. There is excellent transportation and support infrastructure in the area.
About Victory Gas
The Victory Gas Project encompasses 668 gross acres under lease and is within the Upper Cretaceous Winters "Eastside Stratigraphic Trend" of the southern Sacramento Valley, located 20 miles south of Sacramento. Based on 3D seismic interpretation, Victory has the potential to contain over 4.67 BCF gas. Gas is indicated at depths of 7,900 feet over a pay thickness up to 54 feet from 3 sands. The exploratory well planned will be testing Winters Sands, which produce at analog fields such as Merritt Island with 5.6 BCF cumulative production and Snodgrass Slough with 4.6 BCF cumulative production. In the event of a commercially viable well, the estimates for projected initial production rates would be 5,000 MCF per day. The Company's goal is to spud a gas well in September 2009 based on rig availability.
The Victory Gas Project is 1/3rd of a mile from existing pipeline offering a convenient, low cost and rapid tie-in to enable gas sales to PG&E Citygate, where today, gas prices are $3.45 per MCF.