American Oil & Gas updates Fetter Field activity
  by: OilOnline
  Wednesday, June 18, 2008

American Oil & Gas, Inc. reports that the Hageman 11-22 well has reached its targeted total depth and been cased to 12,945', approximately 80 feet below the Dakota formation, the deepest formation of interest in the Fetter field. Completion operations are scheduled to commence in approximately three weeks and will target the Niobrara, Frontier, Mowry and Dakota formations. Mud log and electronic log analysis also indicate potential oil pay in the shallower, normally pressured Teapot and Parkman formations at depths of approximately 7,710' and 8,200', respectively. The Teapot and Parkman potential will be tested in a new well, the Hageman 11-22UK, expected to commence next month. This well will be drilled in the same section as the Hageman 11-22 well.

Pat O'Brien, CEO of American commented, "We are pleased to report the first well of our 2008 Fetter field program has been drilled and cased. Our completion program is designed to significantly reduce the costs and time incurred on previous wells while maximizing the reserve and production potential. We have elected to allow our drilling rig to drill a well for another operator in the area for a one well program while we obtain preliminary completion and production data from the Hageman 11-22 well. We plan to drill the shallower Hageman 11-22UK well during this time, with a separate less expensive rig, to test the Teapot and Parkman formations which are productive in a number of fields in the Powder River Basin."

Also in the Fetter field, the Company's vertically drilled Wallis 6-23 well has commenced extended production testing of the Frontier formation into the recently completed sales line. Once extended testing is complete, the intent is for all zones of interest in the well to be commingled and placed on production. At the Hageman 16-34H well, which was drilled and completed horizontally in the Frontier formation, pressure build up analysis has been completed and the well is in the process of being placed on production. To date, the well continues to demonstrate abnormally low pressures and flow rates that may be the result of reservoir damage incurred during the completion process.

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