| Location: |
Central Valley California, Sacramento Area. |
| Analog Fields: |
Union Island (271 BCF), Vernalis (103 BCF)and McMullin Ranch (63 BCF) |
| Land Holdings: |
1,000+ Gross Acres |
| Interest: |
25% Working Interest. |
| Target: |
Target sands defined by 2D seismic. |
| Drilling Timeline: |
1st well summer 2009. 3 Well Program Projected |
| Drainage Area: |
650+ acres |
| Gross Pay Interval: |
50 feet of sand pay at 7,400 foot depth |
| Potential Recoverable Reserves: |
42 BCF |
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.