Arctic Hunter Announces Corporate Overview and 2013 Outlook
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/05/12 -- Arctic
Hunter Energy Inc. (TSX VENTURE: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,
-- 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 conside
red 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
The Company is Canadian resource exploration and development Company
that identifies, acquires and finances the acquisition, exploration
and development of oil and gas assets in Western Canada and in North
America. The Company is an Alberta based, junior heavy oil producer.
The Company has a stable production base, and is maximizing future
production opportunities through selective property acquisitions and
identifying low risk exploration drilling activities.
The Company maintains a strong balance sheet and has a qualified
management oil & gas team of professionals 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 by incurring minimum 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.
Certain information in this Press Release is forward-looking within
the meaning of certain securities legislation, and is subject to
important risks, uncertainties and assumptions. This forward-looking
information includes, among other things, information with respect to
the Company's beliefs, plans, expectations, anticipations, estimates
and intentions, including the licensing, completions and success of
future drilling and development activities, performance of existing
wells, the performance of new wells, general economic conditions,
availability of required equipment and services and prevailing
commodity prices. The words "may", "could", "should", "would",
"suspect", "outlook", "believe", "anticipate", "estimate", "expect",
"intend", "plan", "target" and similar words and expressions are used
to identify forward-looking information. The forward-looking
information in this Press Release describes the Company's
expectations as of the date of this Press Release.
Material factors which could cause actual results or events to differ
materially from such forward-looking information include, among
others, risks arising from general economic conditions and adverse
industry events, risks arising from operations generally, changes in
plans with respect to exploration or development projects or capital
expenditures; the uncertainty of reserve estimates; the uncertainty
of estimates and projections relating to production, costs and
expenses, and health, safety and environmental risks, commodity price
and exchange rate fluctuations; reliance on contractual rights such
as licenses and leases in the conduct of its business, reliance on
third parties, reliance on key personnel, possible failure of the
business model or business plan or the inability to implement the
business model or business plan as planned, competition,
environmental matters, and insurance or lack thereof and the other
factors described under "Risk Factors" in the Company's annual
reports available in Canada at www.sedar.com. Readers are cautioned
that this list of risk factors should not be construed as 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
ny 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 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.
Arctic Hunter Energy Inc.
President and CEO
(604) 408-3884 (FAX)
Arctic Hunter Energy Inc.
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