American Updates Douglas Project Activity
Thursday October 4 8:30 am ET
West Douglas State Deep 7-16 Well Warrants Production Testing
DENVER Oct. 4 /PRNewswire-FirstCall/ -- American Oil & Gas Inc. (Amex:
AEZ -
News) announces that the State Deep 7-16 well at its West Douglas prospect recently reached total depth at 14220 feet. Information obtained observed while drilling combined with electric log analysis indicates the well has potential pay in up to five separate formations. 41/2 inch production casing has been run to total depth. Preparations are underway to begin completion testing operations once the drilling rig has been moved off the site. Pursuant to the agreement with Red Technology Alliance ("RTA") 100% of the cost to drill complete the State Deep 7-16 well is being funded by RTA. American will own a 45% carried working interest in the test well will retain a 45% working interest in the West Douglas undrilled acreage. Halliburton Energy Services Inc. is project manager. The drilling rig used on the State Deep 7-16 well is currently moving to American's Fetter Field to immediately commence drilling the Wallis 6-23 well which is a vertical well designed to test multiple prospective formations utilizing multi-stage frac technology.
At American's Fetter Field Hageman 16-34HR well the curve that transitions the wellbore vertical to horizontal is being drilled into the top of the targeted Frontier formation 7-inch casing will be installed. Once the casing has been cemented in place drilling will proceed horizontally into the Frontier in a manner designed to replicate the Sims 15-26H well.
At American's Sims 15-26H well approximately 50 days of preliminary production testing into the sales line the unstimulated 1165 foot horizontal lateral that was drilled cased into the Frontier formation one of several prospective formations in the Fetter Field has been successfully concluded. The production test included periods of intentionally flowing the well at high low rates designed shut in periods to evaluate pressure response. During the 50 day production test including shut in days the well produced a total of approximately 168 million cubic feet of gas (mmcfg) into the sales line an additional 12 mmcfg was flared. The well also produced approximately 4575 bbls of high gravity oil. Staged artificial fracture stimulation procedures are currently being performed on the Frontier formation which will be followed by frac fluid recovery operations (clean up) additional testing.
The Wallis 6-23 Sims 15-26H Hageman 16-34HR wells are being funded by RTA project managed by Halliburton. American is being carried through the tanks in this phase of the drilling program for a 23.125% working interest in each of the three wells currently owns a 92.5% working interest in the approximate 51000 net acre Fetter Field acreage position. Upon completion of this initial drilling program RTA will earn a 25% working interest in the undrilled acreage. American will retain a 69.375% working interest in the undrilled acreage privately held North Finn LLC will retain the remaining 5.625% working interest.
American Oil & Gas Inc. is an independent oil natural gas company engaged in exploration development production of hydrocarbon reserves primarily in the Rocky Mountain region. Additional information about American Oil & Gas Inc. is available via the Company's website at
http://www.americanog.com.
This release the Company's website referenced in this release contain forward-looking statements regarding American Oil & Gas Inc.'s future plans expected performance that are based on assumptions the Company believes to be reasonable. A number of risks uncertainties could cause actual results to differ materially these statements including without limitation the success rate of drilling efforts the timeliness of development activities the Company's dependence on future drilling success to produce revenues fluctuations in oil gas prices other risk factors described time to time in the Company's reports filed with the SEC. In addition the Company operates in an industry sector where securities values are highly volatile may be influenced by economic other factors beyond the Company's control. The Company undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the issuance of this press release or to reflect any change in the Company's expectations with regard to these forward-looking statements or the occurrence of any unanticipated events. This press release may include the opinions of American Oil & Gas Inc. does not necessarily include the views of any other person or entity.
Contact: rew Calerich President 303.991.0173 Fax: 303.595.0709 1050 17th Street Suite 2400 - Denver CO 80265 Neal Feagans Investor Relations Feagans Consulting Inc 303.449.1184
Source: American Oil & Gas Inc.