Frac Stimulation to Commence at North OK. Project

American Petro-Hunter announced that completion processes have been finalized and down hole fracture operations have commenced with the onset of commercial production anticipated shortly at well NOJ26.

The operator has advised that fracture stimulation of the lower oil bearing shale formation will proceed Nov. 1. The plan was developed based on the results of a core analysis of the 40 foot oil shale pay zone. The analysis identified that the shale should respond favorably to an engineered program well within industry norms for the prevalent conditions.

Following the stimulation and circulation of fluids, the well will be immediately put on pump to commence production testing from the shale formation. Once the rate of flow has been established from the lower formation, the Company and operator will evaluate and announce the time-frame to complete the well by introducing the upper 40 foot Mississippi formation pay zone to a comingled production scenario.

In related news from the North Oklahoma Project, the No.1 well has returned to production during the past week. As anticipated, upon startup of the pump there was a flash of light, high gravity oil followed by an ongoing cleanup of fluids. It has been reported by the operator that oil cut and pressures are increasing on a daily basis and should stabilize within the next 7-10 days. Current estimates remain in the 75-80 barrel per day (BPD) range as predicted. The infrastructure at the well is in place and the gas separators, waste disposal and storage systems are all operating at peak efficiency. After a period of stabilization the Company plans to begin a third party reservoir engineering assessment in order to calculate a reserve estimate of oil in place under the No. 1 well location.