AAPH - North Oklahoma Mississippi Lime Development

Project Status

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.

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.

At that point a further evaluation will be undertaken to determine the probability for any future stimulation requirements in order to fully maximize oil and gas production.

It became evident that the Mississippi required stimulation in order to return the well to levels present during the initial production period following production that commenced in July.

Norwegian seismic player TGS has kicked off its second multi-client 3D survey of the year covering the Mississippi Lime play in southern Kansas.

The Wellington survey, covering 416 square kilometres of Sumner County, aims to further illuminate the prospects of the shallow oil rich play.

It comes after February’s 725-square kilometre Bucklin survey shoot of the Ford and Kiowa counties.

Like the Bucklin study, the Wellington survey is being acquired with a high channel count vibroseis crew and final deliverables will be processed through pre-stack time migration.

Data from the industry supported shoot will be available to clients in the final quarter of the year, TGS said.

Nov 2011 Production Commenced at American Petro-Hunter's 2nd HZ Ok. Well (Topco)