Arctic Hunter Energy Inc.

December 20, 2011 16:02 ET

Arctic Hunter Enters Agreement for Participation in Drilling of Test Well in Landrose, Saskatchewan

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 20, 2011) - Arctic Hunter Energy Inc. (TSX VENTURE:AHU) ("Arctic Hunter" or the "Company") is pleased to announce that it has entered into a Sub-Participation Agreement with Alberta Star Development Corp. ("Alberta Star"). Under the terms of the agreement, Arctic Hunter has agreed to participate with Alberta Star in the drilling of one test well. Alberta Star holds a 50% working interest in the test well. Western Plains Petroleum Ltd. is the operator. Under the terms of the Sub-Participation Agreement, Arctic Hunter must pay 50% of Alberta Star's share of the costs to drill, complete and equip or abandon the test well to earn a 25% working interest (being 50% of Alberta Star's pre-participation 50% working interest) in the well. Arctic Hunter has no option to drill post-earning wells under the Sub-Participation Agreement. Drilling completion and equipping costs for the well are expected to be $300,000 ($75,000 net to Arctic Hunter).

Arctic Hunter and Alberta Star have common directors and officers. The Sub-Participation Agreement has been approved by the independent members of Arctic Hunter's Board of Directors. The Sub-Participation Agreement is subject to regulatory acceptance.


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.

Reader Advisory

Certain statements contained in this Press Release 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. In particular, this Press Release contain forward-looking statements pertaining to the following:

  • future activities and the timing thereof;
  • estimated future contractual obligations and the amount expected to be incurred under our farm-in commitments;
  • future drilling, completions, equipping and abandonment.
  • supply and demand for oil and natural gas;

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

  • future operating costs;
  • 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.

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)

    Arctic Hunter Energy Inc.
    Robert Hall
    (604) 488-0860