VANCOUVER, BC – Arctic Hunter Energy Inc. (TSXV: AHU) (“Arctic Hunter”) or the “Company”) announces it has successfully drilled the Company’s heavy oil property situated near Lloydminster, Alberta. The Company successfully drilled and encountered oil in all zones of interest which included the General Petroleum, Sparky and McLaren formations. The well is expected to be placed on production shortly subject to equipment being mobilized due to unseasonably wet weather conditions. The newly drilled well is located at D-11-051-01-W4 and once completed and stabilized, production rates are expected be comparable to that of surrounding heavy oil wells in the region. Once the well has been completed and placed on production the Company will release the production rate of the newly drilled well.
Arctic Hunter agreed to participate with Petrocapita (Farmor) in drilling the one (1) test well by July 2014. Under the agreement, Arctic Hunter (Farmee) must pay 50% of Petrocapita’s share of the cost to drill, complete and fully equip or abandon the test well to earn a 30% net interest. The farmout test well, which has been surveyed and licensed, will be a vertical well. Petrocapita will be the operator of the new test well.
The farmout test well is located near Lloydminster, Alberta. Drilling completion and equipping costs are expected to average $500,000 for the well ($250,000 net to Arctic Hunter). The Company will be targeting the McLaren, Sparky and General Petroleum formation zones.
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 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