Drilling Reaches Target Oil & Gas Zone and Total Depth at the Witter Field Oil and Gas 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
November 5, 2018 TSX-V Trading Symbol: AHU
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DRILLING REACHES TARGET OIL & GAS ZONE AND TOTAL DEPTH AT THE WITTER
FIELD OIL AND GAS DISCOVERY IN CENTRAL CALIFORNIA
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VANCOUVER, BC - Arctic Hunter Energy Inc. (TSXV: AHU) (“Arctic Hunter ”) or the
“Company”) announces that drilling has successfully reached the target zone at total depth on the
newly discovered light sweet oil target in the Witter F ield oil & gas discovery. The C ompany has been
notified by Temblor Petroleum that drilling its directional well with a vertical completion, has currently
reached its target zone and total depth of the light sweet target oil formation. Temblor is currently
completing drilling and casing, logging and finalizing the com pletion of the newly drilled HM -5 well.
Preliminary Log data provided to the C ompany indicate a potentially productive oil and gas
hydrocarbon-bearing zone, similar in size to the other two wells , KCDL -2 and the HM -3 discovery
wells, recently drilled at the Witter Field Oil & gas discovery. The HM-5 well is expected to be fully
completed, with subsequent logging and interpretation received shortly. Once completed, flow testing
will begin. The results will be released when received by the Company. The new well is expected to be
brought online with the Witter Field oil and gas production facility operations some time in late
November.
Irani Engineering and Drilling Ltd, of Sacramento , Califo rnia has been appointed to drill the one (1)
well in October 2018 by Temblor Petroleum. Temblor has secured and successfully mobilized the large
double Paul Graham Drill Rig #6 to the target site at W itter Field , and is currently performing the
drilling of the new well at the Witter Field discovery . The new well has been fully licensed by Temblor
Petroleum, and the drill permit has been issued by the State of California. The new well will be drilled to
a total depth (TD) of 10,000 feet, and will be a directional well with a vertical completion. Temblor will
be targeting light sweet (38 API) oil formation zones. Pending the anticipated success of this new oil
well, the Company will seek to partici pate in an additional oil well targeting the same formation.
Temblor Petroleum Company LLC, of Bakersfield, California will be the designated operator of the new
well.
WITTER FIELD OIL & GAS DISCOVERY / FACILITY AND PIPELINE
The Witter Field Oil & Gas Facility and pipeline is now completed, fully automated, tied in and 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 facilit y. 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 t he construction of a new state of the art gas separation processing
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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 ga s 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 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 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 curre nt operator, Temblor Petroleum LLC is expected to drill an additional 2
deep vertical wells this year and integrate production to the newly installed facilities o peration which
can handle over 2,000 BOPD of light sweet oil. Additional drilling and explora tion growth activity has
been planned for the project in 2018-2025, with its working interest partners.
The Witter Field Oil & Gas transaction (see Company news release dated September 18, 2018)
represents the Company’s initial diversification into the Un ited 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 addi tional 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 and 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.
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 int erest 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.
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 producti on 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 Company to access a
wide portfolio of oil explorat ion 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 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 central California.
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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 drilling. The Company has the
necessary manpower i n 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
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.