American Petro-Hunter is finalizing plans to drill a horizontal oil well on the North Oklahoma Project leases located in Payne County, Oklahoma.
The new well is designated NO4H and planned as a minimum 2,000 foot horizontal exploiting the productive shale horizon intersected in previous drilling. The Company has reviewed the engineering package and concurs with third party estimates that the production potential of a successful horizontal well at the North Oklahoma Project could be between 1,000 and 1,200 barrels per day of light, high quality crude offering stable long life reserves and predictable production.
The operator and engineering team have reviewed the geological and geophysical data and have determined that the ideal location exists fully within leases collectively held by the working interest partners; therefore, by drilling on existing leases no additional farm-in costs will be incurred. Operational planning specifies approximately 30 days to survey the leases and commence site preparation along with completing the contracting process. The proposed timeline should allow for a spud date in mid-September.
Currently all efforts at the Project to prove the presence of a large shale reserve have been positive. Preliminary operations and initial drill testing of the potential within a 48 foot thick shale pay zone calculated to produce commercial quantities of oil have been successful to date.
Regionally, significant shale oil projects have been developed within the Bakken Formation which encompasses 200,000 square miles of the subsurface of the Williston Basin, covering parts of Montana, North Dakota, and Saskatchewan, Canada. A report by the USGS estimated the amount of technically recoverable oil within the Bakken Formation at 3.0 to 4.3 billion barrels. The state of North Dakota also released a report which confirms these numbers. Along with the Green River Formation which covers portions of Colorado, Wyoming and Utah, these oil shales indicate vast reserve potential. In Payne County Oklahoma, companies such as Devon, Chesapeake and Newfield have recently begun exploiting petroleum through horizontal wells.
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