Arctic Hunter Has Been Advised BY Temblor That IT Has Appointed International Reservoir Technologies Inc., of Lakewood, Colorado to Maximize Oil & Gas Production Strategies at the Witter Field Oil Discovery IN Central California
ARCTIC HUNTER ENERGY INC.
c/o Suite 1200 - 750 West Pender Street ∙ Vancouver ∙ British Columbia ∙ V6C 2T8
Telephone: (604) 681-3131
NEWS RELEASE
May 23, 2019 TSX-V Trading Symbol: AHU
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ARCTIC HUNTER HAS BEEN ADVISED BY TEMBLOR THAT IT HAS APPOINTED
INTERNATIONAL RESERVOIR TECHNOLOGIES INC., OF LAKEWOOD, COLORADO TO
MAXIMIZE OIL & GAS PRODUCTION STRATEGIES AT THE WITTER FIELD OIL
DISCOVERY IN CENTRAL CALIFORNIA
____________________________________________________________________________________
VANCOUVER, BC - Arctic Hunter Energy Inc. (TSXV: AHU) (“Arctic Hunte r”) or the
“Company”) announces that the Company has been notified by Temblor Petro leum that they have
appointed International Reservoir Technologies Inc . (IRT), of Lakewood, Colorado to provide
production strategies for the newly drilled wells and the new ly constructed Witter oil & gas facility and
pipeline. International Reservoir Technologies offers technical petroleum reservoir management
consulting services to the worldwide petroleum industry, employing experienced petroleum engineers
and geophysicists who will perform integrated reser voir and well management studies of the Witter
Field discovery and maximize the potential of the reservoir. The Company has performed work on some
of the world’s largest oil fields and promising exploration and development areas. IRT is considered a
world leader in Steam Flood, Insitu Combustion, Chemical flood, CO2 and Hydrocarbon
miscible/immiscible EOR processes. The pending r esults of the resource modeling studies of the Witter
Field and timing of implementation recommendations to maximize oil and gas production are expected
to be received and implemented shortly.
WITTER FIELD OIL & GAS DISCOVERY / FACILITY AND PIPELINE
The Witter Field Oil & Gas Facility and pipeline is now completed, fully automated, tied in and now
fully operational. The facility includes two 2,200 barrel oil tanks with a production capacity of up to
2,000 barrels a day, a fully operational gas pipeline, and a natural gas processing facility. The Company
is currently shipping premium light sweet crude oil with a 38°API combined with high quality gas to the
local California markets and receiving a cash premium for the oil. The high BTU content of the Witter
field gas (1265 BTU), required the construction of a new state of the art, gas separation proces sing
facility to remove natural gas liquids and reduce the BTU content of the gas from 1280 to 1080 for
integration and input into California’s Pacific Gas & Electric (PG&E) gas system. This gas processing
facility is located 7 miles from the Witter field discovery at the Helm Station.”
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 working interest partners in 2015. Since its
discovery Temblor and it s 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 testing commercial oil & gas production. D evelopment and
expansion of the discovery field is expected to continue for many years.
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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 proport ionate 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.
The Arctic Hunter light Oil & Gas transaction (see Company news release dated September 18, 2018),
“The Torri” 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 advanced oil exploration and drilling and revenue opportunities. This strategic
acquisition of additional revenue producing resource assets will also allow the C ompany to access a
wide portfolio of oil exploration opportunities situated in this oil region. The Temblor/Witter Field Oil
project will also help to compliment the Company’s existing heavy oil production and cash flow, in
Alberta and Saskatchewan and pro vides the Company with 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 central California.
NATIONAL INSTRUMENT NI 51-101 OIL & GAS RESERVE REPORT –COMPLETED
The Company has completed a comprehensive NI 51- 101 Oil & Gas Reserve Report prepared by
Petrotech Engineering Ltd., for the Witter Field Oil & Gas discovery situated in the San Joaquin Valley,
California. Pursuant to the Royalty purchase Agreement, the Company 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, i n central
California for the purchase price of 2,249,100 shares of Arctic Hunter at a deemed price of $0.10 cents
per share.
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 dr illing. The Company has the
necessary manpower in place to develop its natural resource properties and manage its production
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
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release.