Arctic Hunter Increases Its Working Interest Ownership to 60%, IN the C- 12 Well, Situated IN Landrose, Saskatchewan
ARCTIC HUNTER ENERGY INC.
c/o Suite 1200 - 750 West Pender Street · Vancouver · British Columbia · V6C 2T8
Telephone: (604) 681-3131
NEWS RELEASE
June 28, 2018 TSX-V Trading Symbol: AHU
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ARCTIC HUNTER INCREASES ITS WORKING INTEREST OWNERSHIP TO 60%, IN THE C-
12 WELL, SITUATED IN LANDROSE, SASKATCHEWAN
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VANCOUVER, BC - Arctic Hunter Energy Inc. (TSXV: AHU) (“Arct ic Hunter” or the
“Company”) is pleased to announce that it has entere d into an debt settlement agreement with
Petrocapita Oil & Gas LP, of Calgary “(Petrocapita ”), whereby the company has amended the original
Farmout agreement dated July 5, 2010, and subsequently amended on February 24, 2014, and increased
it’s working interest ow nership in the C-12-6-50-25 W3M vert ical well, situated in Landrose,
Saskatchewan by an additional 10%. Arctic Hunter Energy has now increased it’s working interest to
60% and Petrocapita 40%, in the C-12 well, effective July1, 2018. The C-12-6-50-25 W3M, was
successfully drilled near Landros e, Saskatchewan in July of 2010 and penetrated the McLaren
formations and encountered oil, in 2 other zones of interest. The well has been a consistent producer for
the company since being placed on daily production in 2010. Petrocapita remains the operator of the
well.
Additionally, the Company has now entered into an agreement with Husky Energy which commenced in
May 2018, whereby the company will receive all paymen ts directly from Hus ky Oil Operations Ltd,
Managing Partner of Husky Energy Marketing Partnership for the Company’s heavy oil wells situated in
central Alberta and Saskatchewan.
THE “TORRI” – Oil & Gas Term Overriding Royalty Interest
The Company on June 22, 2018, has negotia ted and entered into a non-binding letter of intent for an
asset purchase pursuant to which 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, in central California for the approximate
purchase price of 2,249,100 shares of Arctic Hunter at a deemed price of $0.10 cents per share, subject
to the completion of NI -5101 Reserv e Report, final due diligence and the usual industry adjustments,
such transaction having an anticipated completion date of September 1, 2018. This transaction is subject
to TSX Venture Exchange approval.
The TORRI is a non-operating overrid ing royalty interest that does not bear production expenses and is
created out of and burdening leasehold working inte rest 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 pr oportionate share of oil and gas produced from the
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Leases attributable to a portion of Temblor’s worki ng 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.
ABOUT THE TEMBLOR/ WITTER FIELD OIL & GAS DISCOVERY & PROJECT
SITUATED IN THE SAN JOAQUIN VALLEY OF CENTRAL CALIFORNIA
The Temblor/Witter Field project is situated in th e 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 signifi cant capital in developing a fully co mpleted production facility and gas
pipeline with liquid processing facilities. The W itter Field project is now in commissioning and will
begin full commercial production shortly. In addition to the development of the new wells and the newly
completed processing facilities, Temblor has alread y received a conditional use permit from Fresno
County for the drilling and development of other wells and expanded facilities to accommodate the full
development of the field. Development and expansion of the discovery field is expected for many years.
The well was drilled and completed in 2015. The current operator, Temblor Petroleum LLC is expected
to drill an additional 2 vertical we lls 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 Arctic Hunter proposed light Oil & Gas transaction represents th e Company’s initial diversification
into the United States and the California oil and ga s resource sector by acqui ring and securing monthly
light oil production revenue and, allowing the Compa ny to access advanced oil exploration and drilling
and revenue opportunities. This strategic acquisitio n 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 Temblor/Witter Field Oil project will also help to compliment the Company’s existing
heavy oil production in Alberta and Saskatchewan a nd provides the Company with reputable American
working interest partners seasoned in light oil & gas production, which will allow the Company access
to future expansion opport unities in the oil and natural gas resource sector in this re gion of California.
The Company is encouraged by quality and size of the oil & gas exploration projects, but is being very
thorough, discerning and highly selective in asse ssing any potential revenue producing resource,
exploration and drilling opportunities. The Company continues to review and maintain its high standard
of due diligence with regard to the appointment of any new additiona l management teams and potential
exploration acquisitions being presented to the Co mpany. Updates will be provided as details are
finalized with regard to any potential acquisitions.
ABOUT ARCTIC HUNTER ENERGY– OIL AND GAS PRODUCTION
The Company is a Canadian heavy oil & gas exploration and develo pment Company that acquires and
finances the acquisition, exploration and development of oil and gas a ssets primarily in Western Canada
and now diversifying into California. The Company is a junior heavy oil produc er that is focusing on
growing its production base and ma ximizing future production revenue through its exploration drilling
activities, production acquisitions and strategic asset acquisition bo th domestically in the greater
Lloydminster area of Alberta & Saskatchewan and now in the United States. The Company is
continually reviewing future production and e xploration opportunities thr ough selective property
acquisitions and identifying low risk exploration drilling activities.
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The Company has experienced qualified management, and an Oil & Gas team of professionals seasoned
in field exploration and drilling. The Company has the resources and necessary manpower to develop its
natural resource and production properties. The Comp any is committed to minimizing risk through the
selective acquisition, explor ation and development of petroleum and natural gas resource assets. The
Company intends to increase its o il production and reserv es through its explor ation activities and
strategic property acquisitions both domestically and internationally.
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 Ventur e Exchange) accepts respon sibility for the adequacy or accuracy of this
release.