Hunter Oil Corp. (TSX.V: HOC) (OTCQX: HOILF)
Hunter Oil Corp. (TSX.V: HOC) (OTCQX: HOILF) ("Hunter Oil" or the "Company") is an oil and gas exploration, development and production company. The Company's corporate headquarters are located in Vancouver, British Columbia, and its operational headquarters are in Houston, Texas. Along with its subsidiaries, Hunter Oil is engaged in acquisition, development, operation, and exploitation of crude oil and natural gas properties in the Permian Basin in eastern New Mexico. The Company owns and operates two large, proven oil fields – the Chaveroo and Milnesand San Andres fields – with a total acreage position of over 23,000 acres that are essentially contiguous. Hunter Oil's operations involve re-accessing the existing reservoirs and developing the resource by utilizing contemporary completion techniques and proven unconventional recovery technologies.
First developed in the 1950s and 1960s using vertical well production technology, the Chaveroo and Milnesand fields produced 40 million barrels or only a fraction of the original oil in place, leaving behind significant recoverable reserves. Hunter Oil plans to unlock the value in these resource-rich fields by leveraging existing infrastructure, lowering operating costs and increasing efficiencies of its operations. By exploiting the pre-existing infrastructure at these proven, legacy assets, Hunter Oil is poised to capitalize on a significantly reduced exploration and finding cost threshold that enables profitability. Net present value of its reserves in these fields, discounted at 10 percent, is estimated at US$829.7 million as disclosed in the company's year-end 2017 reserve report(1).
The Company's wholly-owned subsidiary, Ridgeway Arizona Oil Corp., recently received drilling permits for five wells in its Chaveroo oil field. Hunter Oil intends to develop the Chaveroo reserves by drilling up to 84 horizontal wells. These permits represent the first group of wells to be drilled in the planned program and mark a significant milestone. During the past three years, the Company has readied the two oil fields for their next phase of exploitation via infill horizontal redevelopment.
The planned wells will target the San Andres formation at approximately 4,500' TVD (true vertical depth) and will be one-mile-long horizontal wells. The Chaveroo oil field has reserves targeted for exploitation of 22 MMBOE (million barrels of oil equivalent) consisting of Proved Undeveloped reserves of 8.4 MMBOE, Probable reserves of 3.4 MMBOE, and Possible reserves of 10.2 MMBOE, as disclosed in the Company's year-end 2017 reserve report(1).
Hunter Oil's management team has decades of experience in oil production, both internationally and domestically, allowing for a greater understanding of operating assets on both state and federally regulated lands. Al H. Denson, P.E., recently appointed as Chief Executive Officer of Hunter Oil Corp., is an active member of the Society of Petroleum Engineers with more than 40 years of exploration and production experience. He began his career in 1976 with Amoco Corporation (now BP), where he served in various engineering, operational and management roles, both in the U.S. and internationally. Mr. Denson, who served as a director and member of the Company's Operating Committee from 2014 to 2017, earned both a Bachelor's degree and Master's degree in Petroleum Engineering from Mississippi State University and is a Registered Professional Engineer in the State of Louisiana.
As a believer in corporate responsibility, Hunter Oil is committed to safe and responsible exploration and development practices that reflect a thoughtful awareness of the impact its operations have on the environment and community. Hunter Oil's mission is to bring environmental, social and economic value to all of its stakeholders.
(1) This information is a summary only and readers are referred to the Company's news release dated April 26, 2018 for further details, as well as to the evaluation of the Company's reserves conducted by independent qualified reserves evaluator, Cawley, Gillespie & Associates, Inc., effective December 31, 2017 which is available at www.sedar.com.
