American Petro-Hunter Reprocesses Sacramento Seismic

American Petro-Hunter has advised on preparations at the Sacramento Gas Project and has provided an update on events regarding the Rooney Project in Kansas.

As previously announced, a seismic shoot on the California location was undertaken in 2009 and that data has now been combined with seismic reports purchased from other engineering firms. The data is being re-processed with the aim of identifying a location best suited to test the prospect. The results of this analysis will be made available to the Company shortly and we anticipate a consensus on a well location followed by near immediate preparations for drilling. The proposed test well of 7,800 feet will confirm the presence of gas within sands that are indicated by 2D seismic to be in excess of 50 feet of gross pay with Potential Recoverable Reserves that have been calculated at 42 BCF.

The Sacramento Gas Project is located west of Modesto in the Central Valley of California. Estimates by the play generator, a private third party engineering group, concludes that if the pay zone is 100% gas filled and the well is brought into commercial production that an I.P.R. (initial production rate) of 5,000 Mcf per day may be achieved.

In the event of a successful and commercially viable well, we anticipate that similar production rates to those found at commercial wells at regional analog fields producing between 2,000 to 4,000 Mcf per day are possible. Natural gas wells in these analog fields exhibit long life with relatively stable rates of production and predictable decline.

The Sacramento region of California is aptly named "California's Gas Country" and many regional fields contain some of the most prolific gas reservoirs in the Central Sacramento Valley. These fields have accounted for over 400 BCF of gas production to-date. In proximity to the prospect are prolific gas fields such as Union Island (271 BCF), McMullin Ranch (63 BCF) and Vernalis (103 BCF).

The project, if commercially viable would produce gas that would be purchased by such groups as PG&E Citygate which supplies gas to the Capital region of Sacramento and is used in electrical power generation in the area. The current gas pricing for PGE-Citygate is in the $4.50 per Mcf range.

In other news, operations towards the spud of the next development well at the newly discovered oil reservoir in Western Kansas designated as the #3 Rooney well are moving forward with plans to mobilize the rig on the lease as soon as the spring weather conditions, which continue to improve on a daily basis, allow. The #3 Rooney directly offsets the producing #24-1 Double H well.


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