Source: American Petro-Hunter
American Petro-Hunter is finalizing plans to commence drilling operations on its next oil well to be drilled at the North Oklahoma Shale Oil Project, designated NOJ26.
NOJ26 is a vertical well with multiple objectives to a depth of 4,000 feet. The targets include the primary oil shale plus the location offers excellent potential in both the Simpson and Wilcox formations. The Wilcox is one of the most prolific producers in Payne County and nearby existing analog production has cumulatively produced 80,000 barrels of oil per well with 7 years of commercial activity to date. Wilcox wells often deliver initial production rates in excess of 100-120 BOPD with 200 MCF of gas.
A multiple objective well minimizes risk given the three potentially productive horizons and increases the overall information to be gained regarding shale response to acidization and fracturing. Once this well is drilled, completed and put into production, the Company plans to immediately move forward and implement plans for the commencement of operations of the previously announced horizontal well on the property.
The drilling contractor has been secured and the partners are finalizing the lease preparations with a detailed site survey and acquisition of all permits. Current plans are to spud the well in 10-14 days. American Petro-Hunter anticipates the well to be drilled and completed by the third week of September dependent upon drilling conditions.
Given that the No. 1 well returned rates in the 75-85 BPD rates on simple acidization alone, the Company and operator believe that a similar technique may prove to be the most cost effective path to R.O.I. and payback by establishing immediate production at the NOJ26 Well and to elect the "frac" option at a later date if required. Should an additional 120 BPD be produced from the Wilcox, the well could potentially be a 200 plus BDP producer. American Petro-Hunter is a 50% partner in the well.