Operations

Proven Reserves, Historic Production and Favorable Geology.

HUNTER OIL OWNS AND OPERATES TWO LARGE, PROVEN OIL FIELDS IN THE STATE OF NEW MEXICO.

Both of the Company’s fields, Milnesand and Chaveroo, are located in the Northwest Shelf of the prolific Permian Basin.

General Location Map

The Company holds a 100% Working Interest (WI) and an average 79% Net Revenue Interest (NRI) in approximately 22,000 acres in the two fields. Both fields produce from the resource rich San Andres formation.

Acerage Map

The Company’s current operations are summarized below:

Description Milnesand Chaveroo Total
Working Interest 100% 100% 100%
Net Revenue Interest 79% 79% 79%
Net Acerage 7,115 14,898 22,013
Held By Production (acres) 6,795 13,108 19,903
Net Production (BOPD) 48 49 97

To unlock the potential in the San Andres producing formation in Chaveroo and Milnesand, Hunter Oil Corp plans an infill horizontal development of both of its large fields utilizing the latest drilling and completion techniques. This 6 year program is planned to begin in mid-2017. Our independent reserve evaluators, Cawley, Gillespie and Associates, Inc. prepared the following reserve valuations based on this development plan.

CG&A August 26, 2016 Reserve Report per NI 51-101 Guidelines with effective date of January 1, 2017 - Summary of Oil and Gas Reserves:

Description Milnesand Chaveroo Total
PDP Reserves (MMBOE) 0.03 0.02 0.05
PUD Reserves (MMBOE) 4.13 8.06 12.19
Probable Reserves (MMBOE) 1.78 3.12 4.90
Possible Reserves (MMBOE) 4.33 9.72 14.05
Total Reserves (MMBOE) 10.27 20.92 31.19

Net Present Value at 10% Discount- U.S. Dollars:

Description Milnesand Chaveroo Total
PDP Value (MM$) 0.19 -0.08 0.11
PUD Value (MM$) 93.26 164.70 257.96
Probabale Value (MM$) 66.50 99.94 166.44
Possible Value (MM$) 166.15 327.68 493.83
Total Value (MM$) 326.10 592.24 918.34

CG&A August 26, 2016 SPE-PRMS Reserve Report at a NYMEX strip with effective date of January 1, 2017 - Summary of Oil and Gas Reserves:

Description Milnesand Chaveroo Total
PDP Reserves (MMBOE) 0.02 0.01 0.03
PUD Reserves (MMBOE) 4.10 8.00 12.10
Probable Reserves (MMBOE) 1.78 3.12 4.90
Possible Reserves (MMBOE) 4.33 9.69 14.02
Total Reserves (MMBOE) 10.23 20.82 31.05

Net Present Value at 10% Discount- U.S. Dollars:

Description Milnesand Chaveroo Total
PDP Value (MM$) 0.01 -0.19 0.18
PUD Value (MM$) 54.34 90.24 144.58
Probabale Value (MM$) 49.03 69.74 118.77
Possible Value (MM$) 123.34 233.11 356.45
Total Value (MM$) 226.72 392.90 619.62
Recent Reports and Filings