Archer Petroleum Corp.
TSX VENTURE : ARK

Archer Petroleum Corp.

May 20, 2010 14:41 ET

Archer Petroleum Announces Farm-In on Two Oil Exploration Projects in Alberta

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 20, 2010) - Archer Petroleum Corp. ("Archer" or the "Company") (TSX VENTURE:ARK) is pleased to announce that the Company has entered into two agreements with a privately funded oil & gas company based in Houston, Texas to explore two high-potential oil exploration projects in the Western Canadian Sedimentary Basin of Alberta.

Under terms of the agreements, Archer has paid an aggregate US$1,312,500, which includes prospect fees and reimbursement of 46.66667% of expenses incurred to evaluate and develop one of the drilling prospects. Archer will also be responsible for 46.66667% of the minimum costs of the initial well being drilled on one of the prospects, which share is estimated to be US$350,000. Archer's working interest is equal to 35% and covers approximately 13,400 acres of leasehold in two key project areas located in Alberta. Additionally, the Company has acquired an option on a third project area consisting of approximately 5,900 gross acres. The Company expects to participate in the drilling of several wells testing Devonian-aged reef complexes.

These acquisitions were acquired by Archer with the assistance of ABL Energy Partners LLC ("ABL"). Pursuant to the Company's Management Services Agreement with ABL (the "MSA"), certain remuneration will be payable by the Company to ABL in respect of these acquisitions, subject to the terms of the MSA.

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 area 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 acres within the Greater Joe Mill Project in West Texas, with an option on an additional 5,700 gross 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 in the Greater Joe Mill Project has been completed to NI 51-101 standards.

Archer additionally holds a 50% working interest in approximately 1,500 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 Bakken Shale and drilling operations are expected to commence in late 2010.

ON BEHALF OF
ARCHER PETROLEUM CORP.

"Colin Bowkett"

Colin Bowkett,
President

THE FOREGOING INFORMATION MAY CONTAIN FORWARD-LOOKING INFORMATION RELATING TO THE FUTURE PERFORMANCE OF THE COMPANY (FOR EXAMPLE, THE FUTURE DRILLING OPERATIONS 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)