DENVER, CO — (Marketwire) — 08/15/11 — American Power Corp. (OTCBB: AMPW) (“American Power” or “the Company”) is pleased to announce that it has retained Boland Drilling Co. of Great Falls, Montana (“Boland”) to conduct the exploration drilling program for the Pace Coal Project located in Judith Basin County, Montana.
Among its tasks, Boland will drill approximately 85 rotary borings in accordance with the drill hole locations and schedule designated by American Power–s technical team. In order to expedite the completion of the drilling program, Boland will provide and operate two rotary rigs. Boland will conduct direct air rotary drilling, mud rotary drilling (if necessary), coring and plugging. It will also provide a 15-foot split barrel NQ conventional core system to perform fluid coring with the rotary rigs.
“We are very excited to be working with Boland, a Montana-based drilling contractor with a solid professional reputation and extensive experience in coal drilling in Montana, having worked for a number of major coal companies and coal mines in the area,” commented Mr. Al Valencia, President and CEO of American Power. “Our hard work and perseverance are beginning to pay off as we keep advancing with the development of our Pace Coal Project. After an arduous permitting process, we are finally moving closer to initiating drilling operations as early as this week,” added Mr. Valencia.
American Power–s planned exploration drilling program consists of 61 drilling sites and will involve a total of 53,875 feet of drilling in three different phases. The first phase of the program consists of a total of 13 drilling locations, while the second and third phases consist of a total of 9 and 39 drilling locations, respectively.
The program–s aim is to place a significant portion of the coal holdings of the Pace Coal Project in the proven and probable reserve classification, with an ultimate goal of establishing sufficient resources to support a greater than 20 year operational mine life. American Power–s exploration program will provide information relative to coal seam thickness, depth of cover, expected top and bottom conditions and coal quality.
American Power Corp. is a publicly traded, dynamic energy company based in Denver, Colorado. The Company was established with the focus of acquiring near-term, large-scale coal projects in close proximity to national transportation links. American Power envisions developing its large coal resources to support electricity generation.
In April 2010, American Power agreed to acquire the coal and mineral rights on roughly 29,000 acres in Judith Basin County, Montana, which make up the Pace Coal Project. The estimated resources in place, based on exploration work conducted by Mobil Oil Co. (now ExxonMobil Corp.), in several independent studies, range from 172 million up to 410+ million tons of high volatility bituminous B coal.
American Power is a member of the Montana Mining Association. American Power trades on the NASD OTC BB under ticker symbol AMPW. Shareholders are invited to contact investor relations toll free at (800) 537-1110 for further information or visit the Company–s website at .
Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements in this news release include that American Power Corp.–s 29,000-acre leases in Judith Basin County, Montana, have high volatile bituminous B coal in the range of 172 and 410+ million tons. Readers should also refer to the risk disclosures outlined in the Company–s quarterly reports on Form 10-QSB, annual reports on Form 10-KSB, and the Company–s other disclosure documents filed from time-to-time with the Securities and Exchange Commission available at
The United States Securities and Exchange Commission (“SEC”) permits mining companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this document that SEC–s guidelines may prohibit us from including in filings with the SEC.
American Power Corp.
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