Archer Petroleum Corp.

Archer Petroleum Corp.

December 20, 2010 14:54 ET

Archer Petroleum Plugs and Abandons Radway Prospect Well

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 20, 2010) - Archer Petroleum Corp (TSX VENTURE:ARK)(OTCQX:APEUF)(FRANKFURT:A6VA) (the "Company") has been advised by South Bay Resources (the Operator) that they will be plugging and abandoning the SBRES WEASEL 2-17-58-20 well on the Radway Prospect in Alberta, Canada.

As announced earlier Archer participated in the drilling of the SBRES WEASEL 2-17-58-20 well which "encountered approximately seven metres of apparent pay" in the well bore. The Operator determined that the well logs bore similar characteristics to other natural gas wells they had completed in the area, and therefore Archer agreed to participate in the completion and testing of the well.

Upon testing it was shown that the sands contained heavy oil rather than natural gas. Lab analysis after production testing determined the oil that was not of sufficient gravity to be commercially profitable. Archer is a 35% working interest owner in the well.

Claude Perrier, CEO, states: "Since we believe that the pay in the well will be, at best, marginally profitable, we will be abandoning the Radway Prospect to deploy our assets into projects that meet our economic objectives. In that regard, we are currently working out final agreements on our major project in the previously announced Matagorda Bay Prospect in the Texas Gulf of Mexico. We have agreed to extend the closing date of this opportunity to January 17th to allow all documentation to be properly completed. Details should be forthcoming on that program after closing."

About Archer Petroleum:

Archer Petroleum Corp. is an independent oil and gas company focused on exploration and development in North America. Archer's assets include properties in the Western Canadian Sedimentary Basin of Alberta, 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" and the OTCQX under the symbol "APEUF" and the DB Frankfurt exchange under "A6VA". Further information on Archer can be found on the company's website at


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 the 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 news release.

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