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American Petro-Hunter, Inc. (AAPH) Goes Over 2012 Oklahoma Drilling Strategy, Plans Five Major Horizontal Wells For Oklahoma Mississippi Lime

|Includes: American Petro-Hunter, Inc. (AAPH)

Today, American Petro-Hunter, the domestic E&P squarely focused on becoming an intermediate level, 1k BOE producer, announced the 2012 development drilling program for both Oklahoma Mississippi Lime Projects, including plans for five more horizontal wells (two for the North Oklahoma Project leases and three for the South Oklahoma Project).

This means about one well every other month based on the 60-80 day timeframe demonstrated via the first three wells, taking each well from drilling through to fracking and commercial production. Rig availability and partner participation should also allow for development of several shallow offset wells, for which there is abundant potential. Additionally, a minimum of eight wells are slated for the Payne County leases, with at least two planned to go in this year.

President of AAPH, Robert McIntosh, noted the continual work in the Mississippi Lime reservoir as panning out into a real mastery of resource extraction from the area and emphasized the initial three productive wells as test cases. Completion of these initial wells demonstrated that the oil and gas will flow here almost straight away after the start of pumping back the frack loads.

Among the three wells going in at the South Oklahoma Project is the SOM-1H, originally planned to go in today, but postponed a week due to anomalous weather, with large amounts of dense spring rain in the vicinity hampering an optimal profile for the start of operations. The SOM-1H should be ready to go in next week, with site prep and well underway for that target and the drilling contractor just waiting for the ground to dry up enough (equipment should be on-site by the end of this month).

McIntosh was clearly pleased with the immediate revenue generation capability (from flush production) of the Mississippi Lime workings and underscored the enhanced payout time for these wells. Pointing to a ROI target less than a year away, McIntosh characterized the wells as having tremendous upside potential, both from initial work and long-term lifecycle production.

It is noteworthy as a kind of milestone that the lateral horizontal drill work for the SOM-1H will be the longest such drilling done by AAPH to date, featuring a 2k plus foot long lateral extension in the plans. Engineering looks solid and results should be in line with or exceed the NOM3H (initial production rates of 230 barrels and 470 MCF of gas per day), according to the company.

All the factors are coming together for a global market of potential $200 WTI crude according to some recent analyst buzz. Not too hard to imagine chasing at least half that move after the last few weeks, with WTI clocking in today over $107 (Brent around $125). We have the Iran situation amid an already disturbed market making things more and more tense as each day passes; this inescapable reality, combined with an energy hungry, and growing planet make the future of such E&P, especially domestic E&P, very clear, irrespective of overheating concerns about the global economy tipped off by China's lower growth data. China is already moving to pump more into consumer growth and after the economic crisis-induced stupor wears off, the global economy could go parabolic on energy demand.

These planned horizontal wells AAPH has on the menu are appearing to offer a 4-10 month ROI payout window, beyond which these Mississippi reservoir sippers are projected to experience superb lifecycle returns, as vertical wells in the region have been producing for over two decades.

Not real complex story here, we have excellent targets and AAPH is moving to shore up production, adding that to the overall momentum of the company as they approach their goal of becoming a leading domestic producer.

More information on this and other news by American Petro-Hunter can be found at the company's website www.AmericanPetroHunter.com

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