ARCTIC HUNTER ANNOUNCES CORPORATE OVERVIEW AND 2013 OUTLOOK
Release Date: November 5, 2012
VANCOUVER, B.C. – Arctic Hunter Energy Inc. (TSX-V: AHU) (“Arctic Hunter” or the “Company”) is pleased to provide the following corporate highlights for Arctic Hunter’s operations during the year ended June 30, 2012, which include:
- Management has implemented and maintained a responsible growth strategy, which included the acquisition of low risk drilling locations and oil assets located in the province of Saskatchewan, utilizing the Company’s favorable working capital position to generate cash flow and seeking to acquire much larger and more sustainable exploration and drilling growth opportunities in western Canada and abroad. Many oil & gas development opportunities have been reviewed and considered by management, none of the opportunities presented have offered the potential returns attractive enough to offset the level of risk and capital required.
- As a result of the Company’s exploration activities the Company was able to maintain steady production from the Company’s heavy oil properties of approximately of 30 bbls per day, net to the company’s interest, and received revenues of $760,000 CDN to the Company for fiscal 2012.
- Revenue from the company’s heavy oil properties has been negatively impacted this summer by the glut of oil in mid continental North America due to increased production in North Dakota, Alberta and Texas, and insufficient pipeline capacity to transport this oil south to major markets. This has resulted in Canadian oil being sold at a discount to the West Texas intermediate (WTI) benchmark crude oil price as rising production cannot find pipeline capacity. The discount to WTI has been even greater for the companys heavy oil production.
- In July of 2012 the Company submitted a formal application for an “Open Door Bid” for the Ionnina Contract area, a 4,187 sq. km block located onshore in north western Greece, with Joint Venture Partner KO Enterprises of Vancouver, BC. This is considered a highly prospective region of Greece, which is on trend with a number of large hydrocarbon discoveries and producing fields, and is considered geologically similar to other producing areas in the region. The application for exploration is currently under review and is being evaluated by the Hellenic Republic Ministry of Environment Energy and Climate Change. The Company is currently awaiting the conclusion and results of the review and is excited about the possibility to negotiate and sign a formal license agreement with the Ministry.
- On September 4, 2012, the Company appointed Ray Lee P.L. Eng to the Board of Directors. Mr. Lee is currently the Senior Exploitation Engineer for an active intermediate private oil company, and has over thirty years of oil & gas experience. Mr. Lee has held senior positions in exploitation, production and operations engineering for natural gas and both conventional and heavy oil with a number of major and junior oil and gas companies.
- The Company continues to maintain a strong balance sheet with no debt and has maintained a stable, daily heavy oil production revenue from its properties in Saskatchewan.
- The Company continues to review a number of domestic and international opportunities and continues to be highly selective while maintaining strict and responsible growth with its domestic drilling and exploration strategies for 2013.
ABOUT ARCTIC HUNTER ENERGY
The Company is a Canadian Oil & Gas exploration and development Company that acquires and finances the acquisition, exploration and development of oil and gas assets primarily 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 through selective property acquisitions and identifying low risk exploration drilling activities.
The Company has qualified management and has an Oil & Gas team of professionals seasoned in field exploration and drilling. The Company has the resources and necessary manpower to develop its natural resource and production properties. The Company is committed to minimizing risk through the selective acquisition, exploration and development of petroleum and natural gas resource assets. The Company intends to increase its oil production and reserves through its exploration activities and strategic property acquisitions.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Tim Coupland, President and CEO
Arctic Hunter Energy Inc.
Tel: (604) 681-3131
Robert Hall, Director
Arctic Hunter Energy Inc.
Tel: (604) 681-3131
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