American Petro-Hunter Acquires Kansas Interest, Ready to Spud 1st Well
American Petro-Hunter, Inc. is pleased to announce the intended acquisition of a 25% Working Interest in the Poston Prospect, located in Trego County, Kansas.
The project is targeting productive oil targets in the Mississippi Dolomite and /or Cherokee sands showing significant 3D Seismic anomalies. The 750 acre block contains a potential multi well program with the first location to be drilled named the #1 Lutters Well. The operator of the project is currently preparing the site with the intention of mobilizing a drilling rig to the well location within the next 7 days.
In the event of commercial production at the #1 Lutters Well an additional 2 to 3 offset locations are proposed in order to fully exploit the acreage. Engineering estimates of the potential production from the indicated pay zone is between 35 and 100 barrels per day from a successful well. Full development of the field could produce up to 400 BOPD of light oil. There is excellent transportation and support infrastructure in the area easily supporting a requisite storage tank battery at the location.
Under the terms of the agreement, the Company has paid to S&W Oil & Gas, LLC of Wichita, Kansas, as vendor of the play a total of $64,500 for the 25% Working Interest in the well. If a successful commercial oil well is established, the Company will receive an 81.5% Net Revenue Interest (NRI).
Details of the agreement will shortly be filed as part of the Company's continuous public disclosure as a reporting issuer under the Securities Exchange Act of 1934 filed with the Securities and Exchange Commission's ("SEC") IDEA database.