American Petro-Hunter, Inc. update the ongoing activities at the #1 Lutters Well oil well at the Poston Prospect located in Trego County Kansas.
American Petro-Hunter and the operator of the project, S & W Oil & Gas, LLC of Wichita, have determined that construction for the pad site and tank battery will begin on June 1st. The Operator has installed 5 1/2″ casing and cement in preparation for completing the well. Additionally, arrangements have been made for the imminent arrival of pumping equipment in readiness for the establishment of commercial oil production.
A completion rig is scheduled to arrive at the site on approximately June 10th with the aim of completing the well by setting tubing, rod, pump jack and related equipment. The Company anticipates production will commence mid-June and is already planning our next drilling program. Management will endeavor to keep stakeholders updated in a timely manner should these dates change due to weather conditions.
Following an upcoming meeting scheduled for later this week with the operator, the Company plans to announce the proposed drilling schedule for the next in a series of off-set well locations at the Poston Prospect. The program is currently in an advanced design stage and is aimed at a rapid exploitation of our new oil discovery in Kansas.
The #1 Lutters well targeted oil in the Mississippi Dolomite and/or Cherokee sands. The location showed a significant 3D Seismic anomaly pinpointing an oil bearing zone. In addition, the 750 acre lease block has the potential for a multi-well program with 2 to 3 offset locations possible 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 transportation and support infrastructure in the area easily supporting a requisite storage tank battery at the location.