American Petro-Hunter Updates on Rooney Project
American Petro-Hunter has provided a progress report regarding the previously announced installation of a natural gas pipeline at the Rooney project #24-1 Double H Oil & Gas Well in Kansas.
The well has undergone a regimen of natural gas flow testing that resulted in a rate of 130 MMCF per day. This would be the anticipated production rate following the imminent tie-in to the pipeline.
The pipeline construction is nearing completion and was subject to a short delay in obtaining a permit to bore under the US 60 State Highway. The Company has been advised that the requisite permit is due shortly and it is anticipated that the gas will be tied into the pipeline in approximately 7 days.
The Company further wishes to report that the results of a gas analysis shows a BTU value of 1,527 and is of excellent quality containing various condensates of value. A contract has been executed with the local buyer and pipeline operator and all factors are now in place to commence commercial gas production shortly. NGPL-Midcont prices yesterday were quoted at $5.35 per MCF.
As previously reported, a review of the Rooney engineering and seismic data has indicated that this newly discovered oil and gas reservoir has a potential aerial extent exceeding the acreage of existing nearby oil fields in the area that have produced in excess of 2.5 million barrels of oil. If the Company is successful in its initial 10 well drill program, and should the entire seismically indicated target prove productive, Rooney could mature into a full field development project offering a recovery scenario in excess of 3 million barrels of oil based on this comparative analogy.
The Rooney Project is located in southwestern Ford County, Kansas 20 miles due south of Dodge City and totals 7,040 acres adjacent to the north edge of existing Morrow Sand oil and gas production. The initial discovery well, #24-1 Double H is anticipated to begin production at rates of over 200 barrels per day. After a review of the 3D seismic data in conjunction with the electronic logs, the potential barrels of oil associated with the well and oil pool is currently estimated at 500,000 barrels. The Company and partners have developed a minimum of 10 target locations to drill that could enable the Company to add 8 additional wells to its portfolio by the end of the third quarter of 2010. The operator of the project is S&W Oil & Gas, LLC of Wichita, Kansas.
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