Arctic Hunter Energy Inc.
TSX VENTURE : AHU

February 06, 2012 14:29 ET

Arctic Hunter Continues Production Growth and Completes Another Well at Blackfoot, Alberta

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 6, 2012) - Arctic Hunter Energy Inc. (TSX VENTURE:AHU) ("Arctic Hunter" or the "Company") is pleased to announce that the Company has participated in successfully drilling, completing and bringing onto production another well situated on its Blackfoot property located in east central Alberta. As previously announced by the Company (see press release dated December 6, 2011), the Company entered into a farm-out agreement with Sahara Energy Ltd., Forent Energy Ltd. (as Farmors) and Petrocapita Oil and Gas L.P. (as Farmee together with the Company).

Under the terms of the farmout agreement, the Company and Petrocapita have agreed to spud one test well by December 13, 2011 on Lsd 4, Section 2-50-2W4M in the Lloydminster area of eastern Alberta. Arctic Hunter and Petrocapita paid 100% of the costs (50% to Arctic Hunter and 50% to Petrocapita) to drill, complete and equip or abandon the test well to earn a 100% working interest (50% to Arctic Hunter and 50% to Petrocapita) subject to an overriding royalty in favour of Sahara and Forent equal to (a) 6% of gross monthly production from the well until payments of $43,781.85 have been made pursuant to the royalty; and (b) 5% of gross monthly production thereafter.

ABOUT ARCTIC HUNTER

The Company is Canadian resource exploration and development Company that is involved in the acquisition, exploration and development of oil and gas properties in Western Canada and in North America. The Company is an Alberta based, junior heavy oil producer. The Company has a growing production base, and is maximizing future production through property acquisitions and its exploration drilling activities.

The Company maintains a strong balance sheet and has a qualified management team in field exploration, drilling and has the necessary manpower to develop, its natural resource and production properties. The Company is committed to creating long term shareholder value through the acquisition, exploration and development of petroleum and natural gas resources to increase its oil production and reserves through its exploration activities and strategic property acquisitions.

The calculation of barrels of oil equivalent ("boe") are based on a conversion rate of six thousand cubic feet ("mcf") of natural gas to one barrel of crude oil. Boe's may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl is base on energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Reader Advisory

Certain statements contained in this Press Release and the Report constitute forward-looking statements. These statements relate to future events or the Company's future performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Company believes that the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in, or incorporated by reference into, this Press Release should not be unduly relied upon. These statements speak only as of the date of this Press Release or as of the date specified in the Report, as the case may be.

Forward-looking statements are included throughout this Press Release and the Report. In particular, this Press Release and the Report contain forward-looking statements pertaining to the following:

  • the quantity and quality of reserves or resources;
  • the performance characteristics of the Company's oil and gas properties;
  • oil and natural gas production levels;
  • capital expenditure programs and the timing and method of financing thereof;
  • future development and exploration activities and the timing thereof;
  • future land expiries;
  • estimated future contractual obligations and the amount expected to be incurred under our farm-in commitments;
  • realization of the anticipated benefits of acquisitions and dispositions;
  • future liquidity and financial capacity;
  • projections of market prices and costs;
  • supply and demand for oil and natural gas;
  • expectations regarding the Company's ability to raise capital and to continually add to reserves through acquisitions and development;
  • expectations relating to the award of exploration permits by governmental authorities; and
  • treatment under government regulatory and taxation regimes.

With respect to forward-looking statements contained in the Press Release and the Report certain assumptions have been made including:

  • oil and natural gas production levels;
  • commodity prices;
  • future currency and interest rates;
  • future operating costs;
  • the Company's ability to generate sufficient cash flow from operations and to access existing credit facilities and capital markets to meet its future obligations;
  • availability of labour and drilling equipment;
  • general economic and financial market conditions; and
  • government regulation in the areas of taxation, royalty rates and environmental protection.

The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of the risk factors set forth below:

  • volatility in market prices for oil and natural gas;
  • liabilities and risks inherent in oil and natural gas operations;
  • uncertainties associated with estimating oil and gas reserves;
  • competition for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel;
  • incorrect assessments of the value of acquisitions;
  • imprecision in estimating capital expenditures and operating expenses;
  • availability of sufficient financial resources to fund the Company's capital expenditures;
  • the possibility that government policies or laws, including those related to the environment, may change or governmental approvals may be delayed or withheld;
  • stock market volatility and market valuation;
  • potential delays or changes with respect to exploration and development projects or capital expenditures;
  • geological, technical, drilling and processing problems;
  • fluctuations in foreign exchange or interest rates and stock market volatility;
  • general economic and business conditions;
  • changes in income tax laws or changes in tax laws and incentive programs relating to the oil and gas industry;
  • failure to obtain industry partner and other third party consents and approvals, as and when required;
  • failure to realize the anticipated benefits of acquisitions; and
  • the other factors identified in other documents incorporated herein by reference.

These factors should not be considered exhaustive. Statements relating to "reserves" or "resources" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the resources and reserves described can be profitably produced in the future. The forward-looking statements contained in this Press Release are expressly qualified by this cautionary statement. The Company does not undertake any obligation to publicly update or revise any forward-looking statements except as required by securities laws.

All oil and gas information contained in this Press Release or the Report, has been prepared and presented in accordance with National Instrument 51-101. The actual oil and gas reserves and future production will be greater than or less than the estimates provided herein. The estimated value of future net revenue from the production of the disclosed oil and gas reserves does not represent the fair market value of these reserves. There is no assurance that the forecast prices and costs or other assumptions made in connection with the reserves disclosed herein will be attained and variances could be material. The estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates of revenue and future net revenue for all properties, due to the effects of aggregation.

The Company cautions that the foregoing list of material factors is not exhaustive, is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. When relying on the Company's forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking information to differ materially from actual results or events. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

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.

Contact Information

  • Arctic Hunter Energy Inc.
    Tim Coupland
    President and CEO
    (604) 681-3131
    (604) 408-3884 (FAX)
    astar@telus.com

    Arctic Hunter Energy Inc.
    Robert Hall
    Director
    (604) 488-0860
    rthall@shaw.ca