American Petro-Hunter declared that drill site operations have commenced in preparation for the next horizontal oil well at the Company's North Oklahoma Mississippi Project development.

Site arrangements are underway including permitting and requisite documentation in advance of the spud of the newly designated NOW-2H well. The directional drilling contractor has been secured and the Company expects a spud date shortly.

The well is a direct offset to the NOM-1H well, which began production in July and will involve a similar lateral drilling operation into the recently discovered Mississippi reservoir. The Company has purchased full working interest participation in up to 11 additional horizontal wells within the play with the NOW-2H becoming the 2nd well implemented under the planned development program.

The leases in the horizontal play are being developed on 80 acre parcels, however the well spacing will be evaluated after each well is put into production for a period of 30-45 days prior to engineering any additional infill wells. This prudently engineered plan will ensure the maintenance of reservoir integrity over the life of the proposed 24 month drilling schedule. The program is envisioned to involve the drilling of approximately one horizontal Mississippi formation well every 30 to 60 days.

Given the dramatically increased levels of activity in the area, rig availability has become a key scheduling issue. As a result, the Company and partners have accelerated the spud date of the NOW-2H and have further determined that the previously announced vertical NOS-2-22 required a shift to October based on current rig logistics which ultimately provides greater overall benefits allowing for improved operational efficiency across both wells.

Tags: American Petro-Hunter