American Petro-Hunter provided an operational update regarding progress at the three oil well locations on the Company's newly acquired leases in Oklahoma. Management reports that it is in production at the first well and is preparing two additional wells for production. The Company further advises that it has acquired a working interest participation of between 20 and 50% in 7 lease blocks that are within the A.M.I. of the North Oklahoma Project.
As reported earlier, the No. 1 well was drilled and completed and has been put into commercial production with initial production rates anticipated, following recovery of all the fracture fluids, to be in excess of 350 barrels per day of high gravity light oil. The 3700 barrel frac is nearly recovered and the well is increasing in oil cut on a daily basis. The engineering team, the operator and Company believe that July production should be in the 9,000 barrel range for the month. The associated gas expected at 50-60 MCF per day is being hooked up to the purchaser's pipeline and the gas revenue alone should pay for the monthly operating costs of the well.
At the No. 2 well location, the well has been cased, perforated and is today undergoing acidizing of the 48 foot pay zone. The next step is a scheduled fracture stimulation program slated for July 1st. A timeline similar to the No. 1 well is anticipated with the fracture stimulation of the well, pumping back the load and the installation of facilities taking approximately 2-3 weeks prior to the onset of commercial production.
At the NOK#3 location, drilling operations at the well site have commenced and the Company will report updates as they are made available from the operator.
With the recent acquisition of 3 additional blocks increasing the Company's overall working interest participation up to 7 lease blocks currently, the North Oklahoma Project is becoming a play that the Company believes will involve the drilling of at least one well per month with continued drilling through 2011. At this juncture the project focuses on vertical wells, however, subject to an engineering review the possibility exists that the formation may prove amenable to horizontal drilling in order to maximize future production and costs.
The Company feels the North Oklahoma Project represents a low risk, high probability of success play that will provide a predictable revenue stream from the long life production of commercial oil wells.
Most Popular Articles
From the Career Center
Jobs that may interest you