Archer Petroleum Corp.

Archer Petroleum Corp.

September 08, 2010 09:00 ET

Archer Petroleum Announces the Scheduled Drilling of Its Radway Prospect in Alberta Canada

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 8, 2010) - Archer Petroleum Corp. (TSX VENTURE:ARK) (the "Company") is pleased to announce that it has consented to participate in its first test well within the highly prospective Radway Prospect in Alberta, Canada, approximately 25 miles Northeast of Edmonton, and approx 4 miles from the historic Redwater Field. Archer has been advised by the operator, South Bay Resources, LLC, that the well is expected to spud in mid to late October of this year.

Colin Bowkett states, "The Radway Prospect is a project Archer is undertaking under its business strategy of combining lower cost, lower risk primary targets with higher reward secondary targets within a single wellbore. The primary target supplies desirable economics while the secondary target, if productive, would prove to be a significant new discovery for the Company."

The well will test the Glauconitic Sand at a depth of approx 1,200 meters, part of a shallower Cretaceous group upper section, and the deep Winnepegosis carbonate at a depth of approx 1,750 meters, part of a seismically identified reef development found in the area.

The Primary Target: The Natural Gas producing upper Cretaceous group is well developed in the surrounding area with over 200 completed wells within 30 miles of the Prospect. South Bay Resources (The Operator) has successfully tested its proprietary geoscience technology for identifying productive Cretaceous in 5 wells in the immediate area.

The operator reports that typical wells in this formation have had Initial Production rates as high as 1 Million cbft per day (up to 2 Billion cbft Estimated Ultimate Recovery) and strong economics with an expected payout of less than a year at current price levels.

The Secondary Target: The deeper Oil Prospective Winnipegosis carbonate reef feature is similar in structural orientation and interpretation to the prolific Redwater field approx 4 miles away. The Redwater field has over 200 completions and EUR reserves of over 1.3 Billion bbls of oil. 

South Bay's unique geoscience technology has identified a reef structure with orientation similar to the Redwater field, and if productive, the reef holds tremendous upside with potential reserves in the tens of millions of barrels and full development could be as many as 30+ wells based on 40 acre spacing.

South Bay acquired proprietary 3D seismic data from EnCana covering the acreage that was reprocessed to be AVO (Amplitude Versus Offset) compliant allowing comparisons with other producing sands in the area. Further synthetic analyses have been made to identify sands and LMR (Lambda-Mu-Rho) analysis was used to show separation between gas and water wet sands and Spectral Decomposition was used to both to identify the sands and to predict porosities in them. The thorough analysis of the data gives support to gas in the Cretaceous objective and gives support that the underlying reef is capable of containing producible liquid hydrocarbons.

Archer is a 35% working interest owner in the well which is part of a 3,200 acre lease holding.

About Archer Petroleum:

Archer Petroleum Corp. is an independent oil and gas company focused on the exploration and development of its assets in North America including the Western Canadian Sedimentary Basin Projects in Alberta, 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".

About South Bay

South Bay Resources, LLC is a private technology-driven oil and gas exploration and production company headquartered in Houston, Texas, with operations in Texas and Alberta.


Colin Bowkett, President

Although Archer believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Archer can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the failure to obtain necessary regulatory approvals, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), and commodity price, interest rate and exchange rate fluctuations. The forward-looking statements contained in this document are made as of the date hereof and Archer undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

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 the release.

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