American Petro-Hunter Announces Development Plans for Rooney Oil and Gas Project
2009-12-21 08:02 ET - News Release
SCOTTSDALE, AZ-- (MARKET WIRE)-- 12/21/09
American Petro-Hunter, Inc. (OTCBB: AAPH)("American Petro-Hunter" or the "Company") today announces the Company's2010 development plan for the Rooney Oil and Gas Project in Kansas. The24-1 Double H well is moving forward with the commencement of full scalecommercial oil and gas production currently slated for January 1, 2010. Theassembly of surface facilities including a large tank battery, pump-jackand installation of oil and gas lines is moving ahead as planned.
The Company and operating partners plan to drill 10 wells in the upcomingyear. The first offset development well is scheduled to spud on January 25thand following that, one additional well each successive month. Thisrepresents a $2.5 million investment by the Company which, if productionrates are as anticipated, will be returned through revenue and cash flow ona very short payback.
A review of the Rooney engineering and seismic data has indicated that thenewly discovered oil and gas reservoir has a potential aerial extent thatexceeds in acreage the size of existing oil fields in the area that haveproduced in excess of 2.5 million barrels. If the Company successfullydrills 10 wells, and should the entire seismically indicated target proveproductive, Rooney has the potential to develop into a field containingapproximately 3 million barrels of oil based on this comparative analogy.
In order to properly value the Rooney Project, the ongoing development planwill include third party independent reservoir engineering. It is the aimof the Company to establish, as soon as possible, the Proved DevelopedProducing (P.D.P.) and Probable Undeveloped Producing (P.U.D.) engineeringreport. The report will be critical in putting a valuation on any and allreserves established by the #24-1 Double H and future wells.
About the Rooney Project:
The Rooney Project is located in southwestern Ford County, Kansas 20 milesdue south of Dodge City and totals 5,120 acres adjacent to the north edgeof existing Morrow Sand oil and gas production. The initial discovery well,#24-1 Double H is anticipated to begin production at rates over 200 barrelsper day. After a review of the 3D seismic data in conjunction with theelectronic logs, the potential barrels of oil associated well and oil poolis currently estimated at 500,000 barrels. The Company and partners havedeveloped a minimum of 5 target locations to drill that could enable theCompany to add 5 additional wells to its portfolio by the end of the thirdquarter of 2010. The operator of the project is S&W Oil & Gas, LLC ofWichita, Kansas. Please visit www.americanpetrohunter.com to viewbackground information on the project as well as recent photos of drillingoperations in Kansas.
About American Petro-Hunter, Inc. (OTCBB: AAPH)
The Company is a goal-oriented exploration and production (E&P) Companyaiming to become an intermediate level oil and gas producer within 12months. The company is in production at the Poston Project in Trego County,Kansas and plans to have the Rooney project in production shortly. With theachievable target of becoming a 1000 BOE producer as our goal, AmericanPetro-Hunter is actively on the "hunt" for domestic petroleum assets. Visitus at: www.americanpetrohunter.com
Notice Regarding Forward-Looking Statements
This news release contains "forward-looking statements" as that term isdefined in Section 27A of the United States Securities Act of 1933 andSection 21E of the Securities Exchange Act of 1934. Statements in thispress release which are not purely historical are forward-lookingstatements and include any statements regarding beliefs, plans,expectations or intentions regarding the future. Such forward-lookingstatements include, among other things, the development, costs and resultsof our exploration program at our properties and any anticipated futureproduction. Actual results could differ from those projected in anyforward-looking statements due to numerous factors. Such factors include,among others, the inherent uncertainties associated with petroleumexploration and development stage exploration companies. Theseforward-looking statements are made as of the date of this news release,and we assume no obligation to update the forward-looking statements, or toupdate the reasons why actual results could differ from those projected inthe forward-looking statements. Although we believe that the beliefs,plans, expectations and intentions contained in this press release arereasonable, there can be no assurance that such beliefs, plans,expectations or intentions will prove to be accurate. Investors shouldconsult all of the information set forth herein and should also refer tothe risk factors disclosure outlined in our annual report on Form 10-KSBfor the most recent fiscal year, our quarterly reports on Form 10-QSB andother periodic reports filed from time-to-time with the Securities andExchange Commission.
ON BEHALF OF THE BOARD
American Petro-Hunter, Inc.
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Robert McIntosh
President & C.E.O.