$AAPH .0129 American Petro-Hunter Closes Agreement to

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American Petro-Hunter Closes Agreement to Acquire 15,000 Acres in Rice and Reno Counties, Kansas and Launches Direct Investment Program

WICHITA, KS--(Marketwired - Nov 6, 2013) - American Petro-Hunter, Inc. (OTCBB: AAPH) ("American Petro-Hunter" or the "Company") today is pleased to announce that the Company has executed definitive agreements for the acquisition and development of the Kansas Mississippi-Osage Project (the "Kansas Project"), a 15,000 acre Mississippi Lime package located in Rice and Reno Counties, Kansas (the "Agreement").

American Petro-Hunter will seek to establish tax-advantaged direct investment oil and natural gas partnerships ("Partnerships") to fund the majority of this and future developmental drilling transactions. We intend to establish broker dealer selling programs in all 50 states in an effort to raise $20 million for the Kansas development program through these direct investment programs. The development of our oil and natural gas properties through a syndicated drilling program business model will enable the Company to earn a fee-based revenue stream, while at the same time allowing the Company itself to continue as a working interest owner in each well. This method of funding large drilling programs has been implemented successfully by other companies, such as Atlas Resource Partners, L.P.

A direct investment partnership with American Petro-Hunter will allow investors to share in both the economic and tax benefits generated by an investment in energy. We intend that the Partnerships will own 40% to 80% of our working interest, with the Company retaining any remaining working interest not provided to the Partnerships. By seeking direct, retail driven investment of working interest in the wells, the Company believes it may fund development drilling programs without having to incur any additional debt or issue equity.

The Company's geographical focus will initially be the Mid-Continent and may expand to include other known producing areas located in the U.S., with a focus on operated properties, such as the Kansas Project. The Company's wholly-owned subsidiary, APH Operating Inc., will act as operator of the Kansas Project as well as American Petro-Hunter's future oil and natural gas development projects. In addition, the Company expects to form a wholly-owned subsidiary to act as managing general partner ("MGP") of the Partnerships.

The Company will seek to structure and manage the Partnerships to achieve tax efficient, long-term monetary returns. The expected monthly cash flows from productive wells will be distributed on a monthly or quarterly basis and combined with current tax advantages consisting of substantial first year tax deductions against ordinary income, and additional tax deductions beyond year one consisting of depletion and depreciation. American Petro-Hunter expects to utilize hedging strategies to manage exposure to commodity price risks associated with a portion of oil and natural gas production in these direct investment programs. To execute this strategy, the MGP may seek to enter fixed price swaps and puts.

The expenditure commitment and obligation for the Kansas Project totals $5.4 million to the benefit of the seller, which we expect to be fully paid after drilling approximately 10 wells. The acreage, if fully developed on a 640-acre unit basis, could potentially support the drilling of a minimum of 23 wells, however, we expect down spacing will increase the number of drilling locations upon development of the assets. The Company will earn its 80% working interest on each 640-acre unit drilled, until it ultimately will have ownership of 15,000 gross, or 12,000 net acres. The play carries an overall 81.25% Net Revenue Interest (N.R.I.). The Company and the seller have structured a timely development of a new well every ninety (90) days, allowing sufficient time to drill, complete and evaluate the well prior to proceeding to the next planned location.

Under the terms of the Agreement, the Company will not be required to provide the seller any upfront funds, however, the Company will be obligated to drill a minimum of three (3) initial horizontal wells to earn its interest in each 640 acre parcel per well. The Company estimates that for the first ten (10) wells, the Agreement requires the Company to fund 100% of the drilling and completion costs including installation of storage tanks on horizontal Mississippi-Osage wells for the Company to earn its 80% Working Interest (W.I.). The Company is required to begin the permitting of the first well within thirty days (30) and has begun the process on the first location. The well must be spudded prior to March 15 2014; however the Company is endeavoring to begin the drilling of the first well as soon as development capital has been acquired. Each well is estimated to cost $2.5 million to drill and complete.

The Mississippian "Osage" chert play was kicked off in 2012 by the drilling of the Unit Corp #1-21H Overall (section 21-25S-10W) drilled to a total depth of 8,115' and was completed in June 2012. Cumulative production for this well during the first five months has been reported as 30,226 barrels of oil and 20,375 thousand cubic feet (mcf) of natural gas, equating to daily rates of 201 barrels and 135 mcf). Since the completion of the test outlined above, there have been 30 horizontal locations filed for permits. Currently there are 12 producing horizontal wells, 11 undergoing drilling and completion, and an additional 20 wells permitted in the area. American Petro-Hunter is targeting a potential of 200 barrels of oil per day at initial production rates from the wells for planning purposes.

About American Petro-Hunter, Inc. (OTCBB: AAPH)
American Petro-Hunter is an exploration and production (E&P) company focused on the acquisition and horizontal development of the Mississippi Lime and Woodford oil formations located in Oklahoma and Kansas. The Company operates from its offices in Wichita, Kansas. Visit us at: www.americanpetrohunter.com

Notice Regarding Forward-Looking Statements
This news release contains "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, scope and type of consulting services provided by third parties use of proceeds, future acquisitions, success of projects, growth and strategic plans. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with petroleum exploration and development stage exploration companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

To find out more about American Petro-Hunter, Inc. (OTCBB: AAPH), visit our website at www.americanpetrohunter.com

Investor Relations:
American Petro-Hunter, Inc.
1-888-521-7762
investors@americanpetrohunterinc.com


Source: Marketwired (November 6, 2013 - 9:00 AM EST)

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