SOURCE: American Petro-Hunter, Inc.

American Petro-Hunter, Inc.

June 04, 2009 09:00 ET

American Petro-Hunter Acquires Victory Gas Project, California

SCOTTSDALE, AZ--(Marketwire - June 4, 2009) - American Petro-Hunter, Inc. (OTCBB: AAPH) ("American Petro-Hunter" or the "Company") today is pleased to announce that it has executed a Purchase and Sale Agreement to acquire a 25% Working Interest in the Victory Gas Project. This is the second California gas play that the Company has added to its growing portfolio.

The Victory Gas Project is located approximately 20 miles south of the city of Sacramento and is within the "Eastside Stratigraphic Trend" along the southern edge of the Sacramento Valley. The project is within a region that contains some of the most prolific gas reservoirs in the Sacramento Valley, accounting for over 400 BCF of gas produced to date along this trend.

The prospect encompasses 668 gross acres under lease and based on interpretation, has the potential to contain 8 BCF gas. Gas is indicated at depths of 7,900 feet over a pay thickness of 20+ feet. The exploratory well planned will be testing Winters Sands, which produce at analog fields such as Merritt Island with 5.6 BCF cumulative production and Snodgrass Slough with 4.6 BCF cumulative production. In the event of a commercially viable well, the estimates on projected initial production rates would be 5,000 MCF per day. The current plan is to spud a gas well in late July 2009 based on rig availability. The drainage and acreage of Victory will allow additional wells to fully exploit the reservoir.

The Victory Gas Project is very close to an existing pipeline offering a convenient, low cost and rapid tie-in to enable gas sales. The California gas market continues to be one of the highest priced in the nation due to the high demand for natural gas that feed regional gas powered electrical generating plants.

Under the terms of the agreement, the Company will pay the vendor of the play $142,000.00 which includes a prospect fee, re-payment of pro-rata cost for the recently completed and interpreted 3D seismic shoot, as well as geological and engineering costs for the development of the gas target. Subsequently, the Company will be responsible for 25% of all ongoing project development costs for drilling, completion and well tie-in.

Details of the agreement will be filed shortly as part of the Company's continuous public disclosure as a reporting issuer under the Securities Exchange Act of 1934 and will be available for review within the Securities and Exchange Commission's ("SEC") IDEA database (formerly EDGAR).

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.
- - - - - - - - - - - - - - - - - -
Robert McIntosh
President & C.E.O.

To find out more about American Petro-Hunter, Inc. (OTCBB: AAPH), visit our website at www.americanpetrohunter.com

Contact Information


  • Investor Relations:
    Bakerview Investor Relations, Inc.
    1-888-521-7762
    Email Contact