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

Market Advisors, Inc. Issues Report on American Petro-Hunter
Press Release Source: Market Advisors, Inc. On Wednesday March 10, 2010, 9:05 am

LINCOLN, Neb., March 10, 2010 (GLOBE NEWSWIRE) -- An updated research report has been issued by Market Advisors, Inc. "Fundamental Analysis for Today's Investments" on American Petro-Hunter (OTCBB:AAPH - News). To view the report, please go to our web site at http://www.marketadvisorsinc.com/

The report details some of the significant achievements by this junior E&P company which have been capped recently by their startling success in the discovery of what is being identified as a "previously undiscovered, estimated 3,000,000 barrel oil reservoir."

An excerpt from the report states, "With oil prices creeping back over the $80 per barrel price, it stands to reason that a company like American Petro-Hunter could benefit investors looking for better returns from a year ago."

About Market Advisors, Inc.

Officers of Market Advisors, Inc. have been in business since 1983 and have provided stock market research for their clients since 1985. Company officials have often been quoted in a wide array of financial publications such as the Wall Street Journal, Investors Business Daily, Barron's, Forbes Magazine and The Dick Davis Digest to name a few.

The information and opinions in this analyst report were prepared by Market Advisors, Inc. (located in Nebraska) who does receive fees for services including preparation of this report. For this research report, officers of Market Advisors, Inc. received compensation from Echelon Global Advisors LLC, a third party. This is not an offer to buy or sell securities nor should this report be construed as investment advice. Information or statements are subject to numerous risks and uncertainties that cause such statements not to prove accurate. Market Advisors, Inc. does not disseminate, nor is it liable for the dissemination by any third party of this analyst report.

About American Petro-Hunter:

American Petro-Hunter is a goal-oriented exploration and production (E&P) company well on its way towards becoming an intermediate level oil and gas producer within the next 12 months. Current efforts and success in Kansas have spurred an aggressive 10 well drilling campaign with a new well planned monthly throughout 2010.

For further corporate information from American Petro-Hunter, please visit: http://www.americanpetrohunter.com/

Contact:
American Petro-HunterInvestor Relations(888) 521-7762Market AdvisorsDoug Wetzel(308) 385-4991dougwetz@kdsi.net

AMERICAN PETRO-HUNTER is a goal-oriented exploration and production (E&P) Company aiming to become an intermediate level oil and gas producer within 12 months. They believe that continued industry growth through the development and exploration of conventional domestic oil and gas reserves will provide the essential near-term stabilizing backbone and primary driver towards an American made economic recovery and restoration of our vital financial system to prosperity.  With the achievable target of becoming a 1000 BOE producer as our goal, American Petro-Hunter is actively on the “hunt” for domestic petroleum through exploration and acquisition. American Petro-Hunter was founded on January 24, 1996. The company is duly incorporated in the State of Nevada.

American Petro-Hunter, Inc. is devoted to the careful identification and acquisition of high quality opportunities in the natural gas sector. 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. The Company's common shares are listed for trading on the electronic over-the-counter bulletin board (OTCBB) market in the United States and trades under the symbol "AAPH".



Company Highlights

• 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
  
  

The Company has a diversified and balanced a portfolio of assets with four production properties in Kansas and California. American Petro-Hunter's Poston Project, Trego County, Kansas and Rooney Oil Project, Ford Country, Kansas are already in-production. Other prospects include: Colby Prospect, Thomas County, Kansas; and Sacramento Gas Prospect, Central Valley, California. The exhibits below provide a geographical map and overview of the Company's various projects.



Rooney Oil Project



American Petro-Hunter has successfully drilled the first of a series of  wells proposed for the Rooney oil project located in southwestern Ford County, Kansas, 20 miles due south of Dodge City off US Highway 283. The acreage block presently contains 8 sections totaling 5,120 acres in T-29-S, R-24 & 25W Ford County. Management considers this acreage to be a "core" land holding, one that future development can provide the basis for the requisite BOE production necessary to meet intermediate and long term goals. The Rooney Project is directly adjacent to the north edge of an existing oil and gas production area. An analog well designated as 3-30-25W in the pool has cumulatively produced 344,448 Barrels of oil and 933,622 MCF gas. There are multiple wells within 2 miles of our acreage that have produced in the 35,000 to 40,000 barrel range from discrete sand channels.

The #24-1 Double H well was drilled in late November of 2009 and encountered a 12 foot pay zone that produced excellent quality 44 degree oil in the tubing up to the surface from 5,400 feet of depth with fluid test results returning 99% oil cut. The strong down-hole reservoir pressure combined with the initial data results have allowed engineers to calculate that the well should be capable of producing over 200 barrels per day.

After a review of the 3D seismic data in conjunction with the electronic logs, the potential barrels of oil associated to the #24-1 Double H well and oil pool is currently estimated at 500,000 barrels.

American Petro-Hunter is now preparing to commence offset drilling operations at the Rooney Project in Kansas. The Company participated in a 3D seismic shoot this summer which has provided ample data regarding the potential on the acreage. The shoot was successful as multiple targets have been identified from the recently interpreted 3D seismic across the entire acreage. The partners and operator have identified up to ten promising targets and are readying plans to move ahead with the first in a series of 5 wells chosen as the best candidates heading into 2010. The first offset location is being readied and, if successful, an ongoing multi well program is envisaged immediately thereafter.





Poston Oil Project
Lutters #1 Well
Trego County, Kansas



The #1 Lutters Well oil well was successfully drilled on the Poston Prospect, Trego County Kansas during the month of May this year. The well encountered excellent quality 44 degree light oil in tests with 65% oil cut with 10% gas and mud with no water. A casing election was made and pipe set following well logging.

The #1 Lutters well began production as a commercially viable oil well on June 18, 2009. The well targeted oil in the Mississippi Dolomite and/or Cherokee sands. The location showed a significant 3D Seismic anomaly pinpointing the 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. Shipments of oil began in June. With successful offsets planned to the east and south the field could ultimately produce between 150 and 200 barrels per day.

The #2 Lutters well drilled encountered good oil shows but lacked the reservoir quality of the first location. With this gained knowledge, offset step outs to the east and south are now planned. The 2 additional oil wells are planned for January 2010 and the estimates of the lease ultimately delivering 150-200 barrels per day are still valid.

N.C.R.A. (National Co-op Refinery Assoc.) of McPherson Kansas, the oil purchaser, is regularly shipping oil for sale from the Lutters lease. The Company is closely monitoring the well production over the next two quarters. The well should stabilize over a short period of time which will allow for a more in-depth evaluation of future rates with a higher degree of precision. As oil production rates may ultimately differ from those calculated or anticipated; oil pumped to the tanks is therefore the most accurate assessment of any early stage producer.





Colby Oil Prospect
Keck #1 Well
Thomas County, Kansas



American Petro-Hunter has acquired a 25% Working Interest in the Colby Prospect, located in Thomas County, Kansas approximately 13 miles southwest of the town of Colby. The 500 acre block has a well defined 3D seismic anomaly that includes 7 potential zones to be tested. The primary objective of the first test well is oil in the Lansing and Kansas City Formations.

The Colby Prospect remains a viable prospect as light oil was discovered in the Kansas City formation and may be present in other locations on the lease. The main objectives had good shows of oil in the Cherokee and Johnson formation in vuggy limestone host rock that appear to be of quality to contain substantial hydrocarbons. The #1 Keck location drilled did not exhibit suitable reservoir permeability to produce at commercial rates though other locations on the lease may have the requisite permeability to produce. The Company remains hopeful that the Colby will be brought into future production by the second offset well. Further work and analysis is required to develop the Colby lease.

Engineering estimates place the potential production from the indicated pay zones at between 75 and 100 barrels per day. Full development of the field from 2 or 3 offset well locations on the structure could produce between 200 and 400 BOPD. A plugged oil well that was drilled and discovered oil when prices were depressed subsequently is approximately 2/3 of a mile from the first well location and the well was not completed.





Sacramento Gas Prospect
Central Valley California



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.