VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 5, 2012) - 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, 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
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 revise any 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.