Huntington Exploration Inc.

Huntington Exploration Inc.

March 02, 2012 09:50 ET

Huntington Exploration Inc. Announces Asset Acquisition

CALGARY, ALBERTA--(Marketwire - March 2, 2012) - The Board of Directors of Huntington Exploration Inc. ("HEI" or the "Company") (TSX VENTURE:HEI) is pleased to announce that effective March 1, 2012, HEI has acquired all of the mineral rights and related assets of an arm's length private company operating in central Alberta, subject to final approval of the TSX Venture Exchange. The assets include (60 BOE/d) of net production and a portfolio of numerous prospects with working interests ranging from 37.5% to 100% on net acreage of approximately 36 sections. Under the terms of the purchase agreement, HEI paid the vendor the purchase price of $1,750,000 in cash, and in that regard has arranged short term debt financing of $1,000,000, payable at 8% interest.

Hydrocarbon potential is oil-weighted for the subject lands, although natural gas is also a significant secondary target. This acquisition will provide Huntington with access to numerous drill-ready oil prospects, encouraging an aggressive operational program. Capital costs associated with developing these shallow petroleum-bearing reservoirs are low, well-suited to Huntington's business model.

HEI is an exploration-focused company actively pursuing opportunities in the oil and natural gas business in the Western Canada sedimentary basin.

Barrels of oil equivalent (BOE) may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet (Mcf) of natural gas to one barrel (bbl) of oil is based on an energy conversion method primarily applicable at the burner tip and is not intended to represent a value equivalency at the wellhead.

Forward Looking Statements:

This press release contains certain statements which constitute forward-looking statements or information ("forward-looking statements"), including statements regarding Huntington's business, such as anticipated exploration activities, which by their nature are forward-looking statements and which are subject to numerous risks and uncertainties, some of which are beyond Huntington's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, operational risks in exploration and development, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and the ability to access sufficient capital from internal and external sources. Although Huntington believes that the expectations in our forward-looking statements are reasonable, our forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward looking information. As such, readers are cautioned not to place undue reliance on the forward looking information, as no assurance can be provided as to future results, levels of activity or achievements. The forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, Huntington does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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