American Patriot Oil and Gas (ASX: AOW) is an ASX listed oil and gas exploration and development company focused on acquiring low cost energy assets in Texas and the mid-continent of the United States.
The company plans to unlock value for shareholders by developing the strategically acquired assets into a positive cash flow producing business.
Our strategy is to acquire and develop low cost conventional production opportunities with workover potential and infill drilling upside capable of producing between 100 and 1,000 barrels per day in onshore USA. We aim to assess up to 20 deals per year and close on 3-4 assets, targeting over +1,000 barrels of oil per day by the end of 2018.
We are dual listed on the ASX, and the OTC as we look to increase our potential shareholder base.
Northern Star Project - 12,000 net acres Valley County, Montana The initial testing phase of the first unconventional, horizontal well in the Northern Star Project in Montana, USA (the “Project”) in the well indicated that further testing including a possible frac job, will have to be implemented.
The well was tested in 4 zones with various strengths of acid, completion fluid combinations and injection rates and recoveries indicate that the reservoir was tight. Accordingly, it has been determined that further evaluation of the current test results needs to be completed before further testing is initiated including a potential frac job. Early analysis of the testing is encouraging and indicates the well has significant potential and the JV will look to further test the well.
As previously stated the JV partner was expected to drill the second horizontal well, in H2 2016 however this was behind schedule and they have not completed their well commitment by the due date in the JV agreement.
Rough House Project - 4,508 net acres DJ Basin, Colorado On February 3rd 2016 AOW announced a new farm out with Running Foxes Petroleum. American Patriot Oil & Gas Limited (AOW) signed a new 5 well JV agreement with Running Foxes Petroleum Inc (RFP) a private oil company based in Denver, Colorado USA.
The new JV covers the entire Rough House project acreage located in the Denver Julesburg (DJ) Basin, Colorado, USA. RFP has discovered a number of major producing oil fields in the region including the landmark Arikaree creek oil field (one of the original discoveries of the Mississippian play in the DJ basin) and a number of the AOW leases lie within and adjacent to the Arikaree Creek oil field. Subject to permitting, RFP was expected to drill the first well in the 2H 2016 (AOW free carried) and the second well should follow shortly thereafter. We are still awaiting guidance from RFP on when the first well under this JV will be drilled.
AOW has agreed to assign a 70% working interest in the Rough House Project to RFP upon completion of two commitment wells, with an option to drill three additional wells.
Panther Project - 5,664 net acres Garfield County, Montana AOW held 12,430 gross acres/10,293 net mineral acres on the Panther project in Garfield County, Montana. During the quarter a lease renewal for part of the acreage in the Panther project came up for renewal. The AOW board determined that due to the cost of renewal of this lease, the funds were better to be deployed in the acquisition of oil production assets in line with the current strategy of the company.
Accordingly 5,590 gross acres/4629 net acres have been relinquished.
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