By ahadmin December 06, 2011

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ARCTIC HUNTER ANNOUNCES FARM-OUT AGREEMENT TO DRILL TEST WELL WITH PETROCAPITA OIL AND GAS L.P.

Release Date: December 6, 2011

VANCOUVER, B.C. – Arctic Hunter Energy Inc. (TSX-V: AHU) (“Arctic Hunter” or the “Company”) is pleased to announce it has 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 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 will pay 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. The test well, which has been licensed, will be a vertical well and is expected to be spudded in the next few days, subject to rig availability and regulatory approvals. Petrocapita will be the operator of the test well. Arctic Hunter’s share of drilling completion and equipping costs in connection with the well are expected to be $210,000. Arctic Hunter has no option to drill post-earning wells under the farm-out agreement.

The Company would also like to announce that it proposes to change its name from Arctic Hunter Uranium Inc. to Arctic Hunter Energy Inc., subject to TSX Venture Exchange approval.
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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.
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FOR FURTHER INFORMATION, PLEASE CONTACT:

Tim Coupland, President and CEO
Arctic Hunter Energy Inc.
Tel: (604) 681-3131

astar@telus.com

or

Robert Hall, Director
Arctic Hunter Energy Inc.
Tel: (604) 681-3131

rthall@shaw.ca

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.
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