American Petro-Hunter commences operations of 2012 horizontal drill program on new “South Oklahoma” oil project

Monday, Mar 19, 2020

SCOTTSDALE, AZ–American Petro-Hunter, Inc. (OTCBB: AAPH) (“American Petro-Hunter” or the “Company”) is extremely pleased to announce that the horizontal oil and gas drill program of its new “South Oklahoma Project” leases is nearing commencement. The inaugural well has been designated SOM-1H and will be spud on or around the last week of March. Site preparations are currently underway and the drilling contractor has advised they will be mobilizing their rig to the site as soon as possible.

The “South Oklahoma Project” covers a gross area encompassing over 5,000 acres with net leased acreage now exceeding 3,000 acres. The well is engineered to drill approximately 2,500 feet of lateral section into the oil-rich Mississippian formation which has proven historically productive throughout the immediate area from numerous vertical wells. The formation is 100 to 120 feet thick across the total prospect area. Vertical Mississippi Lime producers in the immediate vicinity have generally enjoyed long lives with essentially flat decline curves after fairly high initial flush production.

The Company plans to take maximum advantage of recent technological advances in both the drilling and completion of wells in this formation and as part of that initiative has assembled a team of the highly knowledgeable and experienced professionals in the field to fully develop the prospect.

The Company has a high degree of confidence that a number of commercially successful wells from this project are achievable and anticipates increases to current production and revenues during the first half of 2012. Drilling, completion and tie-in to infrastructure of similar horizontal wells has undertaken approximately 60-90 days to reach commercial oil and gas sales. Contracts for both the sale of gas and oil with existing purchasers are in place. The gas is a high BTU liquid rich gas and existing contracts provide the company an interest in both the residue gas and liquids which brings the current consolidated price per MCF to approximately $5.00/MCF. The oil is high gravity sweet crude and the current agreement gives the Company a $1.10 per barrel bonus above the posted price for Oklahoma Sweet Crude.
 
The lands described above cover highly prospective Mississippi Lime targets which, through detailed sub-surface geological mapping and extensive engineering, show Mississippi targets analogous to the recently discovered oil and gas reservoir now being exploited at the North Oklahoma Project. Based on the commercial success of the recent horizontal well drilling program, and the Company’s development plans for the North Oklahoma leasehold which includes 8-12 additional horizontal wells over the next 2-3 years, the new southern project offers considerably more drilling opportunities.

Both the North and South Oklahoma projects cover huge areas and in the north, the Woodford Shale adds significant value as a second resource play that underlies the Mississippi and could conceivably double the ultimate reserves in place. Recent completions of horizontal Woodford wells in the immediate area have had initial production rates in excess of 300 barrels of oil per day. Plans are underway to develop the Woodford at a later date once the development of the Mississippian is well advanced.
 
Currently, the Company and engineers have identified multiple key areas under the 3,000 acres which if developed on 160-acre spacing, could allow future development of approximately 18-24 additional locations for horizontal wells. Over the past months, targets have been refined and prioritized.

Company President Robert McIntosh states, “This first horizontal well at the ‘South Oklahoma project’ is an important step for the Company in meeting its goals and targets for 2012. This will be our fourth horizontal well drilled in Oklahoma and our engineering and completion methods have been refined to where we have a very positive attitude about the development of these new leases. The targets appear as good as, or better than, our projects in our Northern Project region to-date and we look forward to a minimum of 3-4 wells drilled in this area for 2012.”

About American Petro-Hunter, Inc. (OTCBB: AAPH)

The Company is a goal-oriented exploration and production (E&P) Company aiming to become an intermediate level oil and gas producer within 12 months. The Company is in production at the Poston Project in Trego County, Kansas and the North Oklahoma Project. With the achievable target of becoming a 1000 BOE producer as our goal, American Petro-Hunter is actively on the “hunt” for domestic petroleum assets. Visit us at: www.americanpetrohunter.com
 
Notice Regarding Forward-Looking Statements

This news release contains “forward-looking statements” as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of our exploration program at our properties and any anticipated future production. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with petroleum exploration and development stage exploration companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-KSB for the most recent fiscal year, our quarterly reports on Form 10-QSB and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

ON BEHALF OF THE BOARD
American Petro-Hunter, Inc.