ATIP returns to Yen-Tu 1X well offshore Vietnam

American Technologies Inc. Petroleum (ATIP) has returned to the Yen-Tu 1X well in Vietnam.

Offshore staff

SAN FRANCISCO -- American Technologies Inc. Petroleum (ATIP) has returned to the Yen-Tu 1X well in Vietnam.

In September 2004, ATIP began drilling the Yen Tu-1X well. It was drilled to a depth of 1,932 m (6,339 ft), and encountered hydrocarbon-bearing zones in two Miocene formations and the carbonate basement. The well, which represents the first oil discovery in North Vietnamese waters, was then plugged and abandoned pending further appraisal.

Since 2000, ATIP and its partners have drilled four exploratory wells in the blocks (Yen-Tu, Ha Long, Thai Binh, and Ham Rong), resulting in the discovery of three new oil and gas fields. The area has undergone extensive testing, and estimates show the ability to produce at a high commercial rate, says ATIP.

In June 2008, the company began testing of the Ham Rong 1X well in the Song Hong basin, offshore northern Vietnam. The prospective area is south of Hai Phong City in water depths of between 25 and 30 m (82 to 94 ft). Drilling began at Ham Rong 1X in June 2008 to test the hydrocarbon potential of the area's pre-tertiary fractured and karstified carbonate basement, as well as the Miocene channelized clastics reservoir.

The well was drilled to a final total depth of 3,700 m (12,139 ft) and encountered hydrocarbon-bearing zones in carbonate basement formations. Drill stem testing of the Ham Rong well showed open flow production at a commercial rate.

This discovery confirms the existence of oil in the basement of ATIP's reserves as was anticipated and not only increases the company's total proven reserves, but greatly increases the expectations for future reserves based on the existence of oil in the basement for this prospect.

Following the successful testing at Ham Ron 1X, the Yen Tu 1X field was reopened, and is currently being tested. Well results are expected to be made public within the next 60 days, the company says.

01/29/2009

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