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American Petro Hunter
(OTCBB: AAPH)

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Recent AAPH News:

"American Petro-Hunter Announces Arrival of Completion Rig at #1 Lutters Well"
(See Full Story Below)

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Other Relevant AAPH Research Links:

http://www.strikingoil.com/PetroHunter.pdf

http://www.energyintelligenceadvisor.com/report.pdf

http://theotcinvestor.com/american-petro-hunters-near-term-catalysts-look-promising-278/

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Financial Snapshot:

Business:
Oil and Gas Exploration & Production
Exchange:
OTCBB
Symbol:
AAPH
Current Price (05/11/09):
$0.44

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American Petro Hunter (OTCBB: AAPH)

Detailed Quote: http://www.otcpicks.com/quotes/AAPH.php

Company Stock Chart

AAPH's chart is looking good since mid March. Trading volume is steadily increasing and the stock price moved into the $.40 to $.48 range and has been consolidating around $.45 in recent weeks. Also you can see from the chart below that there has been a pretty steady accumulation of stock going on for some time now with accumulation outpacing selling of shares.

Oil Chart

As you can see from the chart below for Brent Crude Oil, oil prices have been on a steady upward trend since mid February. During that time AAPH has been has acquired working interest in several new gas and oil projects and have active drilling work going on. They just announced they are in final stages of completing the #1 Lutters Well at the Poston Project and that should commence production on June 15th. Higher oil prices, acquisitions of new working interest in existing oil and gas projects, and actively ramping up production activities all spell good things for AAPH. We do not believe that the company's stock price has kept up with rising oil and gas prices and the stock is probably due for a run.

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Company Overviewimg

AMERICAN PETRO-HUNTER is a goal-oriented exploration and production (E&P) Company dedicated to the acquisition, exploration and development of outstanding traditional energy sector opportunities across North America. The Company is aiming to become an intermediate level oil and gas producer within 12 months. American Petro-Hunter’s first acquisition is a 25% working interest in an exceptional natural gas project located west of Modesto in the Central Valley of California. Potential Recoverable Reserves have
been calculated to be 42 BCF at a depth of 7,400 feet within sands that are indicated by 2D seismic to be in excess of 50 feet of gross pay.

  • In April 2009, a payment of $200,000 was made for the acquisition of a 25% working interest in a California gas project in the Central Valley of California.
  • A seismic shoot is in the final planning stage towards ultimately setting the first gas well drilling location, to commence in May 2009 with the well to be spud in late July 2009.
  • The Company believes that the project, if proven to be commercially viable, may represent a venture with an in-situ value of greater than $20 million in contained gas to its working interest. A total of 4 wells could ultimately be drilled on the existing leased acreage.
  • In May 2009 American Petro-Hunter acquired a 25% Working Interest in the Poston Prospect, located in Trego County Kansas.
  • The 750 acre block in Kansas contains a potential multi well program with the first location to be drilled named the #1 Lutters Well.
  • The potential production from the Kansas pay-zone of 7-10 feet is between 35 and 100 barrels per day from a successful well. Full development of the field could produce up to 400 BOPD of light oil. Estimates are for recoverable barrels of oil to be up to 60,000 per well location, or 240,000 barrels total under lease with 4 locations drilled.
  • American Petro-Hunter aims to benefit from what would be a very short pay out period for seismic, drilling and pipeline tie-in costs at the target well in its 2009 California Project.
  • The company plans to provide shareholder value through the assembly of asset and property combinations which will include exploratory promise, ongoing production, in-place infrastructure, growth potential and the ability to offer both short term returns as well as significant value over the long term.
  • American Petro-Hunter’s portfolio is believed to be high quality prospects. Its Californian interests holds potential to bring to commercially viable 2,000-3,000 Mcfd natural gas production that could create a positive cash flow position by end of Q3 2009.
  • Estimated dry hole drilling costs are forecast to cost $625,000 to the 100% working interest.
  • With PG&E Citygate pricing near $4.40 and given the Company’s 25% NRI to the 100% WI, we expect thus 20% of all revenues to its 25% WI and an ROI of less than 1 year.
  • With oil prices approaching $60 per barrel the Company has a 25% working interest in the Kansas project. If a successful commercial oil well is established, the Company will receive an 81.5% NRI.
  • American Petro-Hunter plans to rapidly enhance its portfolio of energy projects by means of strategic acquisitions in the petroleum sector across North America.

Projects

California - Sacramento Gas Projectimg

AMERICAN PETRO-HUNTER has executed a Purchase and Sale Agreement with the vendors of the "Sacramento Gas Project" whereby American Petro-Hunter has acquired a 25% working interest in the play. The project is located west of Modesto in the Central Valley of California, near Sacramento. Potential Recoverable Reserves have been calculated to be 42 BCF at a depth of 7,400 feet within sands that are indicated by 2D seismic to be in excess of 50 feet of gross pay.

Estimates by the play generator, a private third party engineering group, is that if the pay zone is 100% gas filled and the well is brought into commercial production that an IPR (initial production rate) of 5,000 Mcf per day may be achieved. American Petro-Hunter would anticipate similar rates to commercial wells in the region at analog fields that produce on a daily basis between 2,000 to 4,000 Mcf per day. Natural Gas wells in these analog field's exhibit long life, relatively stable rates of production and predictable decline.

The Central Valley in the Sacramento region of California is called "California's Gas Country" and nearby fields contains some of the most prolific gas reservoirs in the Sacramento Valley. They have accounted for over 400 BCF of gas production to-date. In proximity to the prospects are prolific gas fields such as Union Island (271 BCF), McMullin Ranch (63 BCF) and Vernalis (103 BCF). The project, if commercially viable would produce gas that would be purchased by PG&E Citygate that supplies gas to the Capital region of Sacramento and is used in electrical power generation in the area. PG&E Citygate prices are some of the highest in the country and prices can be found at outlets such as www.intelligencepress.com.

California - Victory Gas Project

American Petro-Hunter has acquired a 25% working interest in the Victory Gas Project which is located approximately 20 miles south of the city of Sacramento along the Upper Cretaceous Winters "Eastside Stratigraphic Trend" of the southern Sacramento Valley.

Winters sandstones are one of the most prolific gas reservoirs in the Sacramento Valley, accounting for over 400 Bcf of gas produced to date along this trend. Winters sands are deep-water sands with gas fields and pools stratigraphically trapped along their eastern depositional edge. The traps are primary stratigraphic traps formed either by channels shaling out up dip into coeval slope shales or by sands shaling out up dip over structural noses. Many of the structural noses are compaction anticlines formed by drape over deeper thick Winters channels.

Detailed mapping of individual Winters sands indicate that many sands trend westerly into the basin perpendicular to depositional strike and compaction anticlines are present over many of the thicker sands. As an example, the Snodgrass Slough gas field is trapped gas caused by the shale out of Winters "Upper Clarksburg" sands across the southwest plunging of an anticlinal nose. The nose was formed by the rapid lateral shale out of the deeper "Main" Winters sand. Over 4.6 Bcf of gas was produced from this ~200-acre closure.

The Victory Gas Project is northwest of production at Snodgrass Slough and the potential reservoir trap is very similar to that at Snodgrass Slough. The same "Upper Clarksburg" sands that are the reservoirs at Snodgrass Slough form another potential stratigraphic trap when they intersect another southwest plunging nose.

American Petro-Hunter plans to participate with the operator in the drilling of an 8,300 foot well required to test the Prospect through all prospective Winters sandstones.

Poston Prospect - Oil Targetimg

American PetroHunter has acquired a 25% Working Interest in the Poston Prospect, located in Trego County Kansas.

The project is targeting productive oil targets in the Mississippi Dolomite and /or Cherokee sands showing significant 3D Seismic anomalies. The 750 acre block contains a potential multi well program with the first location to be drilled named the #1 Lutters Well. In the event of success and/or commercial production at the #1 Lutters Well, an additional 2 to 3 offset locations are likely in order to fully exploit the acreage.

Engineering estimates of the potential production from the indicated pay zone of 7-10 feet is between 35 and 100 barrels per day from a successful well. Full development of the field could produce up to 400 BOPD of light oil. Estimates are for recoverable barrels of oil to be up to 60,000 per well location, or 240,000 barrels total under lease with 4 locations drilled.

There is excellent transportation and support infrastructure in the area easily supporting a requisite storage tank battery at the location.

Under the terms of the agreement, the Company has paid to S&W Oil & Gas, LLC of Wichita Kansas, as vendor of the play a total of $64,500 for the 25% Working Interest in the well. If a successful commercial oil well is established, the Company will receive an 81.5% Net Revenue Interest (NRI).

Management

Robert B. McIntosh - President & CEO

Mr. McIntosh is a businessman and consulting geologist with a proven track record spanning the past 25 years. He brings diverse experience both as a resource exploration geoscientist alongside noteworthy strengths in all facets of corporate development. Since 1983 his career has taken him across the Americas and abroad where he has been instrumental in the design, implementation, execution and management of programs in the oil, gas, precious and base metals segments of the resource sector. His skills encompass virtually every aspect of oil & gas exploration, well completion and production techniques along with extensive experience in project acquisition, contract negotiation, and project divestitures within the petroleum industry. He has developed singular expertise and broad industry contacts in his various roles across the publicly traded market sector as well as with private junior E&P companies. Mr. McIntosh has successfully assisted his clients and stakeholders in the U.S.A. and Canada on projects that ultimately became producing properties where he has significantly contributed towards full-field exploitation programs utilizing both traditional and secondary forms of drilling and completion along with ongoing wellsite supervisory management aimed at fully optimizing the potential of each asset.

Dan Holladay - Director

Mr. Dan Holladay is oil industry management consultant based in Wichita Kansas. He graduated in 1983 graduate from the University of Eastern New Mexico with an Associate degree in Petroleum Management following extensive studies at the University of Kansas in geology. After a short career in a variety of oil field work he began a 25 year career as an Investment Adviser for firms such as AG Edwards where he advised high net worth clients. Recently, Mr. Holladay has been working as an independent oil industry management consultant where he has been identifying, evaluating and assisting companies and individuals on a variety of Kansas based oil and gas prospects for both exploration and production projects. He will continue this role for American Petro-Hunter with a focus on the current Kansas asset as well as the development of future prospects.

John J. Lennon - Director & Secretary Treasurer

Mr. Lennon has served as Treasurer and VP of Finance of Brite-Strike Tactical Illumination Products, Inc., since May 30, 2008. Previously, he was President of LED Power Group, Inc. from December 2008, President of Chamberlain Capital Partners from 2004, Director of American Durahomes from 2006 and Treasurer/Director/VP of Finance of US Starcom from 2005-2007. Chamberlain Capital Partners assists companies in the area of maximizing shareholder value through increased sales, cost reduction and refined business strategy. Mr. Lennon has also assisted companies in obtaining debt financing, private placements or other methods of funding. On December 31, 2007, Mr. Lennon was appointed Chief Executive Officer, President, Chief Financial Officer, Secretary, Treasurer and director of Explortex Energy Inc., a publicly reporting company, which is a natural resource exploration company engaged in the participation in drilling of oil and gas in the United States. From 1987 to 2004, Mr. Lennon served as Senior Vice President of Janney Montgomery Scott, Osterville, MA, Smith Barney and Prudential Bache Securities, managing financial assets for high net worth individuals.

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Recent AAPH News:

June 9 - American Petro-Hunter Announces Arrival of Completion Rig at #1 Lutters Well

American Petro-Hunter, Inc. (OTCBB: AAPH) ("American Petro-Hunter" or the "Company") today is pleased to announce that the Company has been informed by the operator of the Poston Prospect, S & W Oil & Gas, LLC of Wichita, that the #1 Lutters Well service rig arrived yesterday June 8th in order to begin the completion process at the oil well. The program will involve the installation of rods and tubing following the perforation of the oil pay zones.

The Company anticipates that commercial production at the #1 Lutters Oil Well at the Poston Prospect will begin on June 15th. The oil tank battery and separator equipment is scheduled to be delivered and set in place this week as surface construction nears completion. A permanent connection to local electric power is also planned during this upcoming week. Current arrangements and information provided by the operator indicate that their proposed production schedule is currently on-track and should readily facilitate the planned commencement of oil extraction on or near June 15th.

As announced previously, an oil purchase contract has been executed with N.C.R.A. (National Co-op Refinery Assoc.) of McPherson, Kansas to purchase all production at the Lutters lease.

About the Prospect:

The #1 Lutters Well targeted oil in the Mississippi Dolomite and/or Cherokee sands. The location showed a significant 3D Seismic anomaly pinpointing an oil bearing zone. In addition, the 750 acre lease block has the potential for a multi-well program with 2 to 3 offset locations possible to fully exploit the acreage. Engineering estimates of the potential production from the indicated pay zone is between 35 and 100 barrels per day from a successful well. Full development of the field could produce up to 400 BOPD of light oil. There is excellent transportation and support infrastructure in the area easily supporting a requisite storage tank battery at the location.


June 4 - American Petro-Hunter Acquires Victory Gas Project, California

American Petro-Hunter, Inc. (OTCBB: AAPH) announced 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.


June 2 - American Petro-Hunter Appoints Senior Executives

American Petro-Hunter, Inc. (OTCBB: AAPH) ("American Petro-Hunter" or the "Company") today is pleased to announce that in light of the Company's recent success at our Kansas oil exploration project, Mr. Dan Holladay of Wichita, Kansas has agreed to join the Company's Board of Directors. In addition, we are further pleased to announce that Mr. Robert McIntosh has assumed the role of President and C.E.O. for the Company.

Mr. Dan Holladay is an oil industry management consultant based in Wichita, Kansas. He graduated in 1983 from the University of Eastern New Mexico with an Associate degree in Petroleum Management following extensive studies at the University of Kansas in geology. After a short career in a variety of oil field work he began a 25 year career as an Investment Adviser for firms such as AG Edwards where he advised high net worth clients. Recently, Mr. Holladay has been working as an independent oil industry management consultant where he has been identifying, evaluating and assisting companies and individuals on a variety of Kansas based oil and gas prospects for both exploration and production projects. He will continue this role for American Petro-Hunter with a focus on the current Kansas asset as well as the development of future prospects.

Incoming Company President & C.E.O. Mr. McIntosh is a consulting geologist with a proven track record spanning the past 25 years. He brings diverse experience as a resource exploration geoscientist alongside noteworthy strengths in all facets of corporate development. Since 1983 his career has taken him across the Americas and abroad where he has been instrumental in the design, implementation, execution and management of programs in the oil, gas, precious and base metals segments of the resource sector. His skills encompass virtually every aspect of oil & gas exploration, well completion and production techniques, along with extensive experience in project acquisition, contract negotiation, and project divestitures within the petroleum industry. He has developed singular expertise and broad industry contacts in his various roles across the publicly traded market sector as well as with private junior E&P companies.

The Company thanks Mr. John J. Lennon for his past services and wish to advise that he will remain as a Director and Secretary Treasurer of the Company.


American Petro Hunter

17470 N. Pacesetter Way
Scottsdale, AZ 85255
Email: This email address is being protected from spam bots, you need Javascript enabled to view it
Website: www.americanpetrohunterinc.com

 

 

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