Arctic Hunter Announces That It Continues Negotiation for an Agreement in Principle for the Asset Purchase of Oil Interests Situated in Monterey County, California ____________________________________________________________________________________
ARCTIC HUNTER ENERGY INC.
Suite 1610 - 675 West Hastings Street · Vancouver · British Columbia · V6B 1N2 Telephone: (604) 681-3131
NEWS RELEASE
January 29, 2016 TSX-V Trading Symbol: AHU
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ARCTIC HUNTER ANNOUNCES THAT IT CONTINUES NEGOTIATION FOR AN AGREEMENT IN PRINCIPLE FOR THE ASSET PURCHASE OF OIL INTERESTS SITUATED IN MONTEREY COUNTY, CALIFORNIA
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VANCOUVER, B.C. - Arctic Hunter Energy Inc. (TSX-V: AHU) (“Arctic Hunter” or the “Company”) announces that due to slumping oil prices in the world crude markets combined with global market uncertainty, it’s agreement in principle for an asset purchase with Genautica Oil & Gas LLP (“Genautica”), has been delayed. The negotiations are ongoing and once concluded, the terms will be finalized and announced. The deal terms will be subject to industry price of oil at time of completion, final due diligence and usual industry adjustments, (the “Arctic Hunter Transaction”) such transaction having an anticipated completion date of February 15, 2016. This transaction is subject to TSX Venture Exchange approval.
The Arctic Hunter proposed oil transaction represents the Company’s initial diversification into the United States, and California oil and gas resource sector by acquiring and securing monthly oil production revenue and, allowing the Company to access advanced oil exploration opportunities. This strategic acquisition of additional revenue producing resource assets, will also, allow the Company to access a wide portfolio of oil exploration opportunities situated in this oil region. The Oil & Gas opportunities being negotiated will also help to compliment the Company’s existing heavy oil production in Alberta and Saskatchewan and provides the Company with reputable American working interest partners seasoned in oil production, which will allow the Company access to future expansion opportunities in the oil and natural gas resource sector situated in this region of California.
ARCTIC HUNTER NON-BROKERED PRIVATE PLACEMENT
The Company has previously announced a non-brokered private placement and has reserved up to 5,000,000 units (“Units”) in the capital of the Company, to be issued at a subscription price of $0.05 per Unit, for total gross proceeds of up to $250,000. Each Unit will consist of one (1) common share and one (1) common share purchase warrant, each warrant exercisable at a price of $0.10 per share for a period of two (2) years from the date of issuance. The private placement is subject to approval from the TSX Venture Exchange and all of the securities issued pursuant to the private placement will be subject to a four month hold period from the date of issue in accordance with applicable securities laws.
The Company has agreed to pay a finders’ fee to arm’s length parties for services in respect of the Unit Offering. The finder’s fee will consist of a cash fee equal to 8% of the gross proceeds of the Unit Offering.
ABOUT ARCTIC HUNTER ENERGY
The Company is a Canadian Oil & Gas exploration and development Company that identifies, and finances the acquisition, exploration and development of oil and gas assets primarily situated in Western Canada. The Company is a junior heavy oil producer in the greater Lloydminster area of Alberta & Saskatchewan. The Company is constantly reviewing future production and exploration opportunities and selective property acquisitions and identifying low risk exploration drilling opportunities situated in Canada, the United States and abroad.
The Company has qualified management and has an Oil & Gas team of professionals seasoned in production, field exploration and drilling. The Company has the resources and necessary manpower to develop its natural resource and production properties. The Company is committed to minimizing risk through the selective acquisition, exploration and development of petroleum and natural gas resource assets. The Company intends to increase its oil production and reserves through its exploration activities and strategic property acquisitions.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Tim Coupland, President and CEO Arctic Hunter Energy Inc.
Tel: (604) 681-3131 [email protected]
or
Ted Burylo, Director Arctic Hunter Energy Inc.
Tel: (604) 764-9178
Neither the TSX Venture Exchange nor its Regulation Services Provider, (as the term is defined in the Policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.