Archer Petroleum announces Private Placement
Vancouver, British Columbia, CANADA (Sept 30th, 2011) –
Archer Petroleum Corp (TSX.V: ARK, DB Frankfurt: A6VA), (the “Company”), is pleased to provide the following update on its Matagorda Bay recompletion prospect.
South Bay Resources LLC, (“the Operator”) has advised that the Parker 76B rig arrived under tow on location at the 127-1 well site at 22:30 PM hours, Wednesday September 28th, 2011.
Recompletion activities are expected to commence immediately with the perforation of the Bol Mex sand scheduled to occur in approximately five days, immediately followed by a Frac Pack. Testing of the well will follow the completion of the Frac Pack procedure.As a result of operational changes including the addition of a Frac Pack procedure to the completion, the AFE for this operation has escalated to approximately $2.6m USD. These procedural changes were approved by the Company's board of directors in an effort to maximize production rates following a successful completion.
The Company is funding its share of this increase (~US$258,000) through a combination of cash from its treasury; a sale of a 1% interest in the project (thereby reducing its working interest from 23% to 22%); and the issuance of a 1.3125% gross overriding royalty in the project.
About the Matagorda Bay Prospect
The Matagorda Bay recompletion project comprises approximately 1,600 acres and consists of Texas State Blocks 127, 150 and the North half of Block 151, and includes 3 existing well bores, an existing 7 mile pipeline to shore and an onshore oil/gas handling facility. A key component of this acquisition is the existence of a fully drilled, cored, logged, cased and shut-in well bore (the 127-1 well) in Block 127. The 127-1 well has multiple pay zones indicated on logs and cores and is expected to be initially completed in the Bol Mex (8560 - 8710' depth) section of the Lower Frio. Internal analysis of the logs and cores of the Bol Mex zone indicate approximately 115 feet of expected oil pay. The reservoir is estimated to cover a minimum of 350 acres with potential up to 750 acres.About Archer Petroleum:
Archer Petroleum Corp. is an independent oil and gas company focused on exploration and development in North America. Archer holds properties in Matagorda Bay Texas and Alberta. The Company’s shares are listed on the TSX Venture Exchange under the symbol “ARK” and the DB Frankfurt exchange under “A6VA”. Further information on Archer can be found on the company's website at www.archerpetroleum.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
ON BEHALF OF ARCHER PETROLEUM CORP.
“Colin Bowkett”
President
For further information contact:
Colin Bowkett
President
Archer Petroleum Corp.
Tel: (604) 683 - 7588
Fax: (604) 683 - 7589
info@archerpetroleum.com
www.archerpetroleum.com
THIS NEWS RELEASE IS NOT AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO PURCHASE SECURITIES IN THE UNITED STATES OR TO, OF THE ACCOUNT OR BENEFIT OF, U.S. PERSONS (AS SUCH TERM IS DEFINED IN REGULATION S UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"). THE UNITS, THE COMMON SHARES AND WARRANTS, AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THE WARRANTS HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO, OF THE ACCOUNT OR BENEFIT OF, U.S. PERSONS ABSENT REGISTRATION UNDER THE U.S. SECURITIES ACT OR AN APPLICABLE EXEMPTION FROM SUCH REGISTRATION.