- Independent evaluation calculates net present value of company’s reserves in Chaveroo and Milnesand fields in New Mexico
- Hunter Oil Corp. plans to commence development in the third quarter of 2018
- Results of the evaluation of company’s oil and gas reserves show that its holdings in these two fields in the Permian Basin are 40.3 million barrels of oil equivalent (BOE)
- Company added 376 acres to its holdings in 2017, increasing its total position to more than 23,000 essentially contiguous acres in New Mexico
Hunter Oil Corp. (OTCQX: HOILF) (TSX.V: HOC) increased its position to 23,133 gross acres in the historic Chaveroo and Milnesand Fields in the Permian Basin of New Mexico in 2017, an independent evaluation reported (http://ibn.fm/UXAHr). Net present value of its reserves in these fields, discounted at 10 percent, is estimated at $829.7 million.
Hunter Oil plans to unlock the value in these resource-rich fields by leveraging existing infrastructure, increasing efficiency of operations and lowering operating costs (http://ibn.fm/dXZAA).
The company plans to commence development and drilling in these two fields in the third quarter of 2018 with a combination of horizontal wells. Hunter Oil noted that independent reservoir engineers have certified its fields as capable of producing 16.6 million barrels of oil equivalent with the development of 91 horizontal wells. An infill horizontal development is planned using the latest drilling and completion techniques.
Houston, Texas-based Hunter Oil owns and operates these two large and proven oil fields in New Mexico. Historically, they were first developed in the 1950s and 1960s with vertical well production technology — leaving significant recoverable reserves behind, according to the company. Together, these fields have recorded production of 40 million barrels, which represents less than 10 percent recovery of the oil in place.
For more information, visit the company’s website at www.HunterOil.com
