American Petro-Hunter Views Recent Gains in Oil Prices as Trend Indicator - Kansas Oil Venture Very Timely
* Reuters is not responsible for the content in this press release.
SCOTTSDALE, AZ, May 11 (MARKET WIRE) --
American Petro-Hunter, Inc. (OTCBB: AAPH) ("American Petro-Hunter" or the
"Company") views the recent price increases of crude oil as extremely
positive news for both the economy and the Company. Last week, oil prices
jumped to almost $58 a barrel thereby extending gains to near six-month
highs on investor expectations that the global economic environment is
beginning to grow and may begin to rebound before the end of the year.
Oil has broken above the relative trading range of approximately $45 to
$55 a barrel that it's been at since dropping from a record high of $147
last July. These gains are boosted by investor perceptions that the worst
of a severe U.S. recession may be over. Governments across the world, led
by the U.S. and China, have announced massive fiscal stimulus packages
that should eventually spark economic growth and demand for commodities,
said Francisco Blanch, head of global commodity research at Bank of
America Merrill Lynch. In addition, Production cuts by the Organization
of Petroleum Exporting Countries (OPEC) have helped bolster prices, and
the cartel meets again on May 28 to discuss further possible output
reductions. OPEC leaders have stated they want oil at $70 a barrel.
American Petro-Hunter's management believes that a steady rise in the
price of oil will occur throughout the year and that prices forecast to
be above the $70 per barrel range are both realistic and even possibly
conservative given the dramatic drop from last year's record highs. With
this in mind, the Company has moved quickly to secure its first oil
acquisition, a low-risk conventional target in Kansas. As a further means
of rapidly capitalizing upon the sectors encouraging growth indicators
the Company is currently reviewing several promising production purchase
scenarios in both the U.S. and Canada.
As announced previously, the Poston Prospect in Kansas targets productive
oil formations within Mississippi Dolomite and/or Cherokee sands as
indicated by significant 3D Seismic anomalies. The 750 acre block contains
a potential multi well program with the first drilling location registered
as the #1 Lutters Well. The operator of the project has reported that site
preparations are fully underway with drill rig mobilization to the site
planned within a week.
In the event of commercial production at the #1 Lutters Well an additional
2 to 3 offset locations are proposed in order to fully exploit the
acreage. Engineering estimates of the potential production from the
indicated pay zone is between 35 and 100 barrels per day from a
successful well. Full development of the field could produce up to 400
BOPD of light oil. There is excellent support infrastructure and
transportation access in the area which will easily and cost effectively
facilitate regular storage tank transfers to nearby sales depots.
Notice Regarding Forward-Looking Statements
This news release contains "forward-looking statements" as that term is
defined in Section 27A of the United States Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Statements in this
press release which are not purely historical are forward-looking
statements and include any statements regarding beliefs, plans,
expectations or intentions regarding the future. Such forward-looking
statements include, among other things, the development, costs and results
of our exploration program at our properties and any anticipated future
production. Actual results could differ from those projected in any
forward-looking statements due to numerous factors. Such factors include,
among others, the inherent uncertainties associated with petroleum
exploration and development stage exploration companies. These
forward-looking statements are made as of the date of this news release,
and we assume no obligation to update the forward-looking statements, or
to update the reasons why actual results could differ from those
projected in the forward-looking statements. Although we believe that the
beliefs, plans, expectations and intentions contained in this press
release are reasonable, there can be no assurance that such beliefs,
plans, expectations or intentions will prove to be accurate. Investors
should consult all of the information set forth herein and should also
refer to the risk factors disclosure outlined in our annual report on
Form 10-KSB for the most recent fiscal year, our quarterly reports on
Form 10-QSB and other periodic reports filed from time-to-time with the
Securities and Exchange
Commission.
ON BEHALF OF THE BOARD
American Petro-Hunter, Inc.
- - - - - - - - - - - - - - - - - -
John J. Lennon
President & C.E.O.
To find out more about American Petro-Hunter, Inc. (OTCBB: AAPH),
visit our website at www.americanpetrohunter.com
Investor Relations:
Bakerview Investor Relations, Inc.
1-888-521-7762
Email Contact
Copyright 2009, Market Wire, All rights reserved.
-0-
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.



Follow Reuters