American Petro-Hunter Inc., Scottsdale, Ariz., (OTCBB: AAPH) reports that its #1 Lutters well in the Poston prospect in Kansas has been completed and placed on production. Initial production rates are expected to surpass 100 barrels of oil per day.

The company says it will closely monitor production over the next one to two months and will report if actual production rates differ from the estimates.

Due to the increased oil production expectation, American Petro-Hunter says an additional storage tank may be required at the site battery in order to allow for 600 barrels of oil storage capacity. McPherson, Kan-based National Co-Op Refinery Association will purchase all production at the Lutters lease.

The #1 Lutters well targeted oil production in the Mississippi dolomite and Cherokee sands. The location showed a significant 3D seismic anomaly pinpointing an oil-bearing zone. In addition, American Petro-Hunter says the 750-acre block has the potential for a multi-well program with two to three offset locations possible to fully exploit the acreage.

Engineering estimates of the potential production from the indicated pay zone is between 35 and 100 barrels per day from a successful well. Full development of the field could produce up to 400 barrels of oil per day of light oil.

Wichita, Kan.-based S&W Oil & Gas LLC is the wells operator.