American Patriot CEO Alexis Clark said, “Commercial oil production so soon after listing is a major
milestone for American Patriot and secures the future of the company, significantly de-risking the
Northern Star project. The well results have exceeded our expectations and with a stabilised natural
flow rate of 216bopd (double the 100bopd average for nearby wells), the economics of the project
are compelling. The well is flowing naturally and is capable of a significantly higher flow rate on
pump. Vertical wells can be drilled cheaply and with a low decline rate the wells should payback in
less than 6 months at current oil prices and are economic at very low oil prices”.
“At the current flow rate the estimated ultimate recovery of the well is potentially double nearby
producers which have averaged almost 200,000bbls each. With a 17 well programme ahead of us
and the potential for many more infill wells, this discovery represents a significant potential new
conventional oil resource, worth hundreds of millions of dollars which could create significant
shareholder wealth and cash flow to underpin the business.”
“The Upper Mission Canyon zone was a secondary target in this well so with the benefit of an
experienced operator, Anadarko Minerals, we have potentially discovered a significant new oil play
in this area and with an additional two zones in the Mission Canyon still to be tested, even higher
rates are possible. Importantly, we have yet to test the primary targets in the Charles B and Ratcliffe
intervals, which well logs and an independent petrophysical analysis, all indicate are the most
prospective zones in the well. Nearby wells in the field produce oil from some or all of these reservoir
intervals.”
AOW Price at posting:
19.0¢ Sentiment: Buy Disclosure: Held
