North American Petroleum has acquired its largest interest to date in a well targeting the proven Mississippi Lime formation, Oklahoma which is currently waiting to spud. This is in line with the Company's strategy to build net production and reserves by acquiring and developing leases in liquids rich hydrocarbon plays.

NAP has acquired a 3.75% working interest and a 2.8125% net revenue interest ('NRI') in the Blaser 1-10 ('Blaser'), a horizontal well targeting the Mississippi Lime formation, Oklahoma operated by Cummings Oil Company. Under the terms of the acquisition, 25% of NAP's NRI will be reassigned ('Back-in') to the farmor upon pay-out (i.e. when drilling costs have been recovered). Upon pay-out, NAP will therefore have a 2.11% NRI in Blaser. Total drill costs are estimated at US$3,249,500 with the Company's 3.75% working interest in the well estimated at US$121,856.

Tags: North American Petroleum