Arctic Hunter Signs Letter of Intent FOR the Asset Purchase to Acquire Interests IN 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
June 22, 2018 TSX-V Trading Symbol: AHU
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ARCTIC HUNTER SIGNS LETTER OF INTENT FOR THE ASSET PURCHASE TO ACQUIRE
INTERESTS IN 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”) announces that it has negotiated 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 Joaqui n Valley, in central California (“Temblor Petroleum’s
Witter Field Assets”) 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 th e completion of NI -5101 Reserve Report, final due
diligence and the usual industry adjustments, (the “A rctic Hunter Transaction”) such transaction having
an anticipated completion date of September 1, 2018. This transaction is subject to TSX Venture
Exchange approval.
THE “TORRI” – Oil & Gas Term Overriding Royalty Interest
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
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.
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 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 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 opportunities in the oil and natural gas resource sector in this region of California.
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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 management of the Company continues to revi ew a number of additional, multiple potential large
scale, highly prospective oil & gas production and e xploration opportunities situated in the San Joaquin
Valley region of California. The targeted assets and opportunities currently under review include a
number of oil production assets w ith 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 explora tion opportunities being reviewed are situated on trend with a
number of large regional Californi a hydrocarbon discoveries which ar e nearby to existing producing oil
fields. The management of the Company continues to review and maintain 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 explorat ion 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 trans action are being purchased from an entity under the
control and direction of an insider of the Company. As a result, the acquisition is considered to be a
“related party transaction” pursuan t 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 inside r was not more than 25% of the Company’s market
capitalization.
ABOUT ARCTIC HUNTER – OIL AND GAS PRODUCTION
The Company is a Canadian Oil & Gas explorati on 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 &
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Saskatchewan. The Company is constantly review ing 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 pr ofessionals 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 select ive 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 Ventur e Exchange) accepts respon sibility for the adequacy or accuracy of this
release.