Directional Drilling Commenced at North Oklahoma Project

- Directional Drilling Commenced at North Oklahoma Project

Wednesday, May 25, 2011
American Petro-Hunter Inc.

American Petro-Hunter updated the drilling progress of the NOM1H Horizontal well at the Company's North Oklahoma Project.

Directional drilling has now commenced. The K.O.P. (kick off point) has been reached, and the well is now entering the curved section of the hole. The well plan calls for approximately 1,600 feet of lateral to be drilled in the Mississippi formation before reaching a total depth of about 5,300 feet, with a true vertical depth of about 3,900 feet.

The NOM1H well is the first of a planned series of horizontal wells designed to test and develop oil and gas in the 100 foot thick limestone Mississippi Formation. Once the lateral portion reaches its engineered length, a period of testing and evaluation will commence.

In related news, a neighboring major independent oil company has received a permit to proceed with the drilling of its first horizontal test of the Woodford Shale in Payne County. This nearby well is engineered for a total depth of 9,177 feet with a true vertical depth of 4,300 feet. As American Petro-Hunter is planning a horizontal well into the Woodford Shale as part of our 2011 development program, the results of this neighboring well will prove instrumental towards the timing of our first horizontal efforts in the formation.

Company President Robert McIntosh stated, "The lateral turn of the drill into the horizontal phase means we are now entering the objective pay zone in the Mississippi Formation. Over the next week, drilling operations will be closely monitored by the directional drilling engineer to ensure we stay in the Mississippi for the duration of the operation. The upcoming testing phase is a critical step in the determination of our next well as we gear up for a very busy summer of drilling."

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Two Large Directional Drilling Sites Proposed in Greeley

- Two Large Directional Drilling Sites Proposed in Greeley

Tuesday, May 24, 2011
Greely Tribune, Colorado
by Sharon Dunn, Greeley Tribune, Colo.

Two new oil and gas well projects that would involve dozens of new wells are being proposed within Greeley's city limits now that directional drilling methods have basically been proven and commodity prices are cooperating.

These drilling projects come in a much larger scale than typical vertical drilling, with several wells proposed from one site.

"This is the changing face of the oil and gas industry, with more directional drilling," said Brandon Gossard, a planner with the city of Greeley. "We seem to be getting more applications for directional than otherwise.

"Only recently has that technology been reliable and cost effective to the point where a lot of bigger players have started to use the directional drilling platforms more and more often," Gossard said.

Greeley residents may remember letters from Mineral Resources they got earlier in the year, seeking permission to drill beneath their properties. Some of those letters relate to two projects under consideration this week:

• The Bestway Gravel Pit site off of 4th Street and 35th Avenue, where the company has proposed drilling 40 wells. Residents will get to sound off on the project at a neighborhood meeting Wednesday.
• The Island Grove site off of 11th Avenue across from Island Grove Regional Park, where the company has proposed drilling 22 wells. The Greeley Planning Commission is considering this project Tuesday. Neither project would need Greeley City Council approval, but ultimate planning commission decisions could be appealed to the council within 10 days of a decision.

Copyright (c) 2011, Greeley Tribune, Colo.

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