Archer Petroleum Corp.
TSX VENTURE : ARK

Archer Petroleum Corp.

May 19, 2010 09:01 ET

Archer Petroleum Announces Completion of Successful Wolfberry Oil Well in West Texas

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 19, 2010) - Archer Petroleum Corp. (TSX VENTURE:ARK) (the "Company" or "Archer") is pleased to announce that it has completed a successful Wolfberry oil well with it's initial well in the Company's Greater Joe Mill Project in West Texas, which was drilled to a total depth of approx 8500 feet. After recovering approximately 50% of the stimulation fluids (thus far) used to fracture the formation, the Company's operational team is reporting oil cut ahead of schedule. As is typical in these wells, the oil cut is increasing on an ongoing basis as more fluid is being recovered and is expected to increase to a peak production rate in the coming weeks. Management expects to be in a position to report an initial production rate on the well when approximately 70-80% of the stimulation fluids have been recovered.

Based on the success of this initial well, Management expects to commence drilling on the second location of the Company's four (4) well program in the Greater Joe Mill Project within the next 30 days.

The Greater Joe Mill Project is a tight formation, multi-pay zone vertical well opportunity in the Permian Basin of West Texas. The Company has over 25 potential drilling locations in the area. Despite the recent price drop in global oil prices, Management believes the Company's Wolfberry play will remain economic at prices down to approx $40 per barrel given the low finding and development costs inherent in these assets.

Victor Barcot, CEO states: "This initial well successfully proves up multiple drilling opportunities for the Company on our existing acreage and further validates Archer's business plan of developing high probability, low risk assets while pursuing high impact acquisitions for the Company".

About the Company:

Archer Petroleum Corp. is an independent oil and gas company focused on the exploration and development of its assets in North America including the Permian Basin of West Texas and the Bakken Shale of North Dakota. The Company's shares are listed on the TSX Venture Exchange under the symbol "ARK".

Archer holds a 25% net working interest in approximately 4,700 mineral acres within the Greater Joe Mill area in West Texas, with an option on an additional 5,700 gross mineral acres in the area. Archer commenced drilling operations in February 2010 and has plans to drill an additional 2 wells plus 1 re-entry in 2010. An Evaluation of Oil & Gas Reserves on the Greater Joe Mill Project has been completed to NI 51-101 standards.

Archer additionally holds a 50% working interest in approximately 1,500 mineral acres in a Bakken Shale play located in North Dakota. Archer's partner in this project is a large private operator with a proven track record of success in the prolific Bakken Shale and drilling operations are expected to commence in late 2010.

ON BEHALF OF ARCHER PETROLEUM CORP.

Colin Bowkett, President

THE FOREGOING INFORMATION MAY CONTAIN FORWARD-LOOKING INFORMATION RELATING TO THE FUTURE PERFORMANCE OF THE COMPANY. FORWARD LOOKING INFORMATION IS SUBJECT TO A NUMBER OF KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS THAT MAY CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE ANTICIPATED IN OUR FORWARD LOOKING STATEMENTS. SUCH RISKS AND OTHER FACTORS INCLUDE, AMONG OTHERS, THE ACTUAL RESULTS OF EXPLORATION ACTIVITIES, CHANGES IN WORLD COMMODITY MARKETS OR EQUITY MARKETS, THE RISKS OF THE OIL INDUSTRY INCLUDING, WITHOUT LIMITATION, THOSE ASSOCIATED WITH THE ENVIRONMENT, DELAYS IN OBTAINING GOVERNMENTAL APPROVALS, PERMITS OR FINANCING OR IN THE COMPLETION OF DEVELOPMENT OR CONSTRUCTION ACTIVITIES, TITLE DISPUTES, CHANGE IN GOVERNMENT AND CHANGES TO REGULATIONS AFFECTING THE OIL INDUSTRY, AND OTHER RISKS AND UNCERTAINTIES DETAILED FROM TIME TO TIME IN THE COMPANY'S FILINGS WITH THE CANADIAN SECURITIES ADMINISTRATORS (AVAILABLE AT WWW.SEDAR.COM). FORWARD-LOOKING STATEMENTS ARE MADE BASED ON VARIOUS ASSUMPTIONS AND ON MANAGEMENT'S BELIEFS, ESTIMATES AND OPINIONS ON THE DATE THE STATEMENTS ARE MADE. SHOULD ONE OR MORE OF THESE RISKS AND UNCERTAINTIES MATERIALIZE, OR SHOULD UNDERLYING ASSUMPTIONS PROVE INCORRECT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED IN THE FORWARD-LOOKING INFORMATION CONTAINED HEREIN. THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE FORWARD-LOOKING STATEMENTS IF THESE ASSUMPTIONS, BELIEFS, ESTIMATES AND OPINIONS OR OTHER CIRCUMSTANCES SHOULD CHANGE, EXCEPT AS REQUIRED BY APPLICABLE LAW.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Archer Petroleum Corp.
    Colin Bowkett
    President
    (604) 683-7588
    (604) 683-7589 (FAX)