Arctic Hunter Completes the Asset Purchase to Acquire Interests IN Temblor’S Witter Field Oil and Gas Discovery Situated IN the San Joaquin Valley, California and Completes a NI-51-101 Oil & Gas Reserve Report ____________________________________________________________________________________
ARCTIC HUNTER ENERGY INC.
c/o Suite 1200 - 750 West Pender Street ∙ Vancouver ∙ British Columbia ∙ V6C 2T8
Telephone: (604) 681-3131
NEWS RELEASE
September 18, 2018 TSX-V Trading Symbol: AHU
______________________________________________________________________________________
ARCTIC HUNTER COMPLETES THE ASSET PURCHASE TO ACQUIRE INTERESTS IN
TEMBLOR’S WITTER FIELD OIL AND GAS DISCOVERY SITUATED IN THE SAN JOAQUIN
VALLEY, CALIFORNIA AND COMPLETES A NI-51-101 OIL & GAS RESERVE REPORT
____________________________________________________________________________________
VANCOUVER, B.C. - Arctic Hunter Energy Inc. (TSX-V: AHU) (“Arctic Hunter” or the
“Company”) announces that it has completed the asset purchase pursuant to which the Com pany will
acquire 4,250 barrels of oil and 18,750 mcf of gas from interests in oil and gas situated in the San
Joaquin Valley , in central California ( “Temblor Petroleum’s Witter Field Assets”) for the purchase
price of 2,249,100 shares of Arctic Hunter at a deemed price of $0.10 cents per share. The Company has
successfully completed a NI -51-101 Oil & Gas Reserve Report prepared by Petrotech Engineering Ltd,
and completed final due diligence on the oil & gas production asset acquisition.
Tim Coupland, President & CEO stated, “ We are extremely pleased with this initial oil & Gas
production acquisition and the successful completion of our NI 51- 101 Engineering report with
Petrotech Engineering Ltd.. I can say, as a Canadian junior oil & gas exploration drilling and producing
Company, and combined with highly s easoned oil & gas professionals , we can now look forward to
successfully implementing our strategy of delivering the significant rewards that oil & gas production
and aggressive drilling and production exploration in central California, has to offer. We are extremely
pleased with our latest acquisition of a 5% Royalty based agreement (the “ TORRI”) in the assets of
Temblor Petroleum Company LLC, California , which holds the operating rights to the Witter Field/5
Points Discovery Field, which gives the Company the right to receive its share of production revenue
from a term overriding Royalty Agreement. More importantly, as a result of this oil & gas production
acquisition, the Company is now strategically positioned to capture all of the fully licensed exploration
drilling opportunities that will be integrated and combined with fully completed infrastructure and oil &
gas production operation facilities now in place, situated within the San Joaquim Valley district.”
THE “TORRI” – Oil & Gas Term Overriding Royalty Interest
The TORRI is a non- operating overriding royalty interest that does not bear production expenses and is
created out of and burdening leasehold working interest in the Witter Field Leases. The TORRI has a
limited term which commences at the effective time and automatically terminates and ends on that date
when the purchaser has received the purchaser ’s proportionate share of oil and gas produced from the
Leases attributable to a portion of Temblor’s working interest therein. The transaction has no up-front
capital requirements, and the production cash flow is expected to be immediately accretive to earnings
upon the effective date.
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The Arctic Hunter proposed light Oil & Gas t ransaction represents the Company’s initial diversification
into the United States and the California oil and gas resource sector by acquiring and securing monthly
light oil production revenue and allowing the Company to access adv anced oil exploration and drilling
and revenue opportunities . This strategic acquisition of additional re venue producing resource assets
will also allow the Company to access a wide portfol io of oil exploration opportunities situated in this
oil region. Th e Temblor/Witter Field Oil project will also help to compliment the Company’s existing
heavy oil production in Alberta and Saskatchewan and provides the Company wi th reputable American
working interest partners seasoned in light oil & gas production, which will allow the Company access
to future expansion opportunities in the oil and natural gas resource sector in this region of California.
ABOUT THE TEM BLOR/ WITTER FIELD OIL & GAS DISCOVERY & PROJECT
SITUATED IN THE SAN JOAQUIN VALLEY OF CENTRAL CALIFORNIA
The Temblor/Witter Field project is situated in the San Joaquin Valley , in Central California and was
drilled and discovered by Temblor Petroleum and its partners in 2015. Since its discovery Temblor and
its partners have invested significant capital in developing a fully completed production facility and gas
pipeline with liquid processing facilities. The Witter Field project is now fully commissioned and has
begun full commercial oil & gas production. In addition to the development of the new wells a nd the
newly completed processing facilities, Temblor has already received a conditional use permit from
Fresno County for the drilling and development of 2 other wells and expanded facilities to accommodate
the full development and maximization of the field. Development and expansion of the discovery field
is expected to continue for many years. The well was drilled and completed in 2015. The current
operator, Temblor Petroleum LLC is e xpected to drill an additional 2 vertical wells this year and
integrate production to the newly installed facilities operation which can handle over 1,000 BOPD of
light sweet oil. Additional drilling and exploration growth activity has been planned for the project in
2018-2025, with its working interest partners.
The management of the Company continues to review a number of additional, multiple potential large
scale, highly prospective oil & gas production and exploration opportunities situated in the San Joaquin
Valley region of California. The targeted asset s and opportunities currently under review include a
number of oil production assets with infrastructure facilities, monthly oil & gas production revenue ,
combined with a team of seasoned oil field personnel and field production operators in place to oversee
production. The production and exploration opportunities being reviewed are situated on trend with a
number of large regional California hydrocarbon discoveries which are nearby to existing producing oil
fields. The management of the Company continues to review and m aintain its high standard of due
diligence with regard to the selection of any new management additions, and is being highly selective
while considering and assessing its review of the various oil & gas production opportunities while
completing its due diligence on the California opportunities and exploration datasets being presented.
The Company continues to be cost effective and maintains its low overhead while opportunities are
being explored.
MI 61-101
A portion of the assets being acquired in this tr ansaction are being purchased from an entity under the
control and direction of Daniel B. Scholefield, an insider of the Company. As a result, the acquisition is
considered to be a “related party transaction” pursuant to Multilateral Instrument 61- 101 Protection of
Minority Security Holders in Special Transaction (“MI 61 -101”). The Company determined that
exemptions from the formal valuation and minority shareholder approval requirements of MI 61- 101
were available for the transaction pursuant to Section 5.5(a) and Section 5.7(1)(a) of MI 61- 101 on the
basis that the fair market value of the transaction involving the insider was not more than 25% of the
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Company’s market capitalization.
ABOUT ARCTIC HUNTER – OIL AND GAS PRODUCTION
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 a rea 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 necessary manpower in place to develop
its natural resource properties and manage its producti on properties. The Company is committed to
minimizing risk through the selective acquisition, exploration and development of petroleum and natural
gas resource assets.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Tim Coupland, President and CEO
Arctic Hunter Energy Inc.
Tel: (604) 681-3131
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.