Arctic Hunter Provides Update ON the New Pipeline and Automated Processing Facilty ON Temblor’S Witter Field Oil and Gas Discovery Situated IN the San Joaquin Valley, California ____________________________________________________________________________________
ARCTIC HUNTER ENERGY INC.
c/o Suite 1200 - 750 West Pender Street ∙ Vancouver ∙ British Columbia ∙ V6C 2T8
Telephone: (604) 681-3131
NEWS RELEASE
September 20, 2018 TSX-V Trading Symbol: AHU
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ARCTIC HUNTER PROVIDES UPDATE ON THE NEW PIPELINE AND AUTOMATED
PROCESSING FACILTY ON TEMBLOR’S WITTER FIELD OIL AND GAS DISCOVERY
SITUATED IN THE SAN JOAQUIN VALLEY, CALIFORNIA
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VANCOUVER, B.C. - Arctic Hunter Energy Inc. (TSX-V: AHU) (“Arctic Hunter” or the
“Company”) provides the following update on the development of Temblor’s Witter Field Oil & Gas
discovery situated in the San Joaquin Valley of California.
Tim Coupland, President & CEO stated, “ We are pleased to announce that 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, fully
operational gas pipeline, and a natural gas processing facility. We are currently shipping premium li ght
sweet crude oil with a 37 % API combined with high quality gas to the local California markets and
receiving a cash premium for the oil. T he high BTU content of the Witter field gas (1265 BTU),
required the construction of a new state of the art, gas separation processing facility to rem ove 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 Witter Field Oil & Gas transaction 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 Compa ny to access advanced oil exploration and drilling and
revenue 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 thi s oil
region. The 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 with reputable American
working interest partners seasoned in light oil & gas p roduction, which will allow the Company access
to future expansion opportunities in the oil and natural gas resource sector in this region of California.
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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 end s 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 product ion cash flow is expected to be immediately accretive to earnings
upon the effective date.
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 resour ce 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 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. The 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 com missioned and has
begun full commercial oil & gas production. In addition to the development of the new wells and 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 cur rent
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.
NATIONAL INSTRUMENT NI 51-101 OIL & GAS RESERVE REPORT –COMPLETED
The Company has completed a comprehensive NI 51- 101 Oil & Gas Reserve Report prepared b y
Petrotech Engineering Ltd., for the Witter Field Oil & Gas discovery situated in the San Joaquin Valley,
California. Pursuant to the asset purchase, the Company will acquire 4,250 barrels of oil and 18,750
mcf of gas from interests in oil and gas situat ed 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.
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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 g reater 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
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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Policies of the TSX Venture Exchan ge) accepts responsibility for the adequacy or accuracy of this
release.