American Petro-Hunter announced that the Company’s 2nd Horizontal well, the NOW-2H has commenced commercial oil and gas production at the North Oklahoma Mississippi Lime Project.
Following drilling of the horizontal portion of the well, the NOW-2H was completed and tied in to the existing gas line and tank battery. A period of commercial testing and evaluation is now underway. Production data will be assessed and evaluated from the lateral penetration of the Mississippi limestone formation (“Mississippi Lime”) which exhibited excellent oil and gas shows in highly fractured reservoir rock. After the requisite period of testing, the Company will determine whether future reservoir fracture stimulation would prove beneficial as demonstrated with the successful program completed at the NOM-1H well.
As previously reported, an upper sand horizon cut on the vertical portion of NOW-2H showed a substantial oil filled pay thickness which will be perforated and tested once all down-hole development of the Mississippi portions of the well are finished. The significance of this additional perforation will result in co-mingled oil and gas production from the higher zone along with primary production from the Mississippi Lime.
At the Company’s NOM-1H well, we continue to successfully pump off hydraulic fluids introduced during the fracture stimulation (frack) in the productive sections of the well. Approximately half the frack fluid load has been recovered to-date. It is important to note that production has not been interrupted during this process as an excellent oil cut appeared almost immediately and has been increasing steadily with oil flowing to the storage tanks on a daily basis. Production is now double what existed prior to the frack and the ultimate goal of the stimulation is to achieve a five-fold increase in the daily oil and gas rates.
Company president Robert McIntosh stated, “The NOW-2H well becoming a commercial producer is an important step in the development of the project as we build our daily production from the North Oklahoma Mississippi Project. The process provides our engineering team invaluable knowledge and expertise aimed at delivering the most cost effective way of drilling and completing these well to maximize their potential. So far, our development plans for the future looks very promising for the 4th quarter of 2011 and into our 2012 drilling schedule. Once we are able to co-mingle this latest well and derive its ultimate productive capability, we plan on drilling offsets and implementing the recently gleaned information as part of our projected development scenario for the project. “