UHO United Hunter Oil and Gas Corp

TORONTO, Dec. 20 /CNW/ -- TORONTO, Dec. 20 /CNW/ - United Hunter Oil & Gas Corp. (UHO: TSX-V).  Gaffney, Cline & Associates (GCA) evaluated United Hunter Oil & Gas Corp.'s ("UHO") Resources in the Huasna field, San Luis Obispo County in California. GCA served as independent resource evaluators. The firm's officers and employees have no direct or indirect interest holdings in Huasna. GCA's remuneration was not in any way contingent on reported resource estimates. GCA classified the resources as Contingent Resources in accordance with the reserve and resource definitions set out in the Canadian Oil & Gas Evaluation handbook (COGEH), which also forms part of the Canadian National Instrument 51-101. Contingent Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. The major contingency at Huasna is securing the necessary permits from the regulatory authorities. UHO owns 65% of the 160 acre project area of the Huasna field through the Excelaron Joint Venture.  On the remainder of the field area UHO holds variable interests and has verbal agreements on the remaining interests with the other mineral rights owners in which they concur to allow leasing of those interests once the first phase of development is permitted by the regulatory authorities. The readers are cautioned that there is no certainty that it will be commercially viable to produce any portion of the resources. The Huasna field is located in the Huasna basin and is a fault related anticlinal structure that produced heavy oil from the Monterey Formation. The Huasna basin is located northeast of and on trend with the prolific Santa Maria Basin. The oil column at Huasna field has been reported from depths of about 270 feet to 3,000 feet and consists of fractured shale containing 8.5(o) to 13(o) API oil. Seven wells were drilled in the field between the years 1937 and 1965. Drilling and production commenced in the late 1950's reaching peak production in 1966. The field was shut in with a cumulative production of about 23,000 bbls of oil. UHO's current development plan targets a proposed project area of 160 acres in size and contains the existing wells and is designed to have the least surface impact; vertical and directions wells will be drilled from central locations. An upside to this project is that the potential structure might be 600 acres in size. GCA made volumetric estimates of the Discovered Petroleum Initially-In-Place "PIIP" using the existing well information and references appropriate field analogs. GCA gives expected recoveries at Huasna of 4-6% of the Discovered PIIP for the hot water stimulation process that UHO plans to test and implement at Huasna. According to GCA's estimates the P50 Discovered PIIP is 96 MMBbl with net UHO recoverable of 2.7 MMBbl; the P90 Discovered PIIP is 44.6 MMBbl with net UHO recoverable of 1.2 MMBbl, and the P10 Discovered PIIP is 174 MMBbl with net UHO recoverable of 5.1 MMBbl. The Discovered PIIP estimates are for the entire field area.  Net UHO recoverable volumes are based on the assumption that UHO's 65% interest in the 160 acre project area will apply to the remainder of the Huasna field.  The volumes have been reduced for royalties. Recoverable volumes are classified by GCA as Contingent Resources as of July 31(st) 2010 and estimated in accordance with the reserve and resource definitions set out in the Canadian Oil and Gas Evaluation Handbook COGEH, which also forms part of Canadian National Instrument 51-101. Total Petroleum Initially-In-Place (PIIP) is that quantity of petroleum that is estimated to exist originally in naturally occurring accumulations. It includes that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations, prior to production, plus those estimated quantities in accumulations yet to be discovered (equivalent to "total resources"). Discovered Petroleum Initially-In-Place (equivalent to discovered resources) is that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations prior to production. Another upside to this project is that similar fractured shales have been shown to recover 20-40% of the Discovered PIIP when steam injection was used. Steam flooding to the extent that is technically applicable to Huasna would require considerable investment and special permitting in compliance to environmental regulations. Dr. Arthur Halleran, CEO of UHO states that "Huasna is an exciting opportunity for UHO as the Huasna field could contain a substantial amount of recoverable oil". United Hunter Oil & Gas Corp. (www.unitedhunteroil.com) is a Canadian based corporation with management very experienced in the oil and gas industry and has projects in California and Canada. United Hunter Oil & Gas Corp. is publicly traded on TSX Venture Exchange (TSX-V: UHO). The Corporation's public filings may be found at http://www.sedar.com. Certain statements contained in this press release constitute "forward-looking statements" as such term is used in applicable Canadian and US securities laws. These statements relate to analyses and other information that are based upon forecasts of future results, estimates of amounts not yet determinable and assumptions of management.  Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or are not statements of historical fact and should be viewed as "forward-looking statements". Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  Such risks and other factors include, among others, costs and timing of exploration and production development, availability of capital to fund exploration and production development; political, social and other risks inherent in carrying on business in a foreign jurisdiction, the effects of a recessionary economy and such other business risks as discussed herein and other publicly filed disclosure documents. Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such statements.  Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Corporation undertakes no obligation to update forward-looking statements and if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law. This news release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. When used herein, words such as "intended" and similar expressions are intended to identify forward-looking statements.  Forward-looking statements are based on assumptions by and information available to the Corporation.  Investors are cautioned that such forward-looking statements involve risks and uncertainties.  Actual results may differ materially from those currently anticipated. The forward-looking statements contained herein are expressly qualified by this cautionary statement. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/December2010/20/c6622.html table border="0"trtdDr. Arthur Halleranbr/ CEObr/ (403) 667-4941br/ a href="mailto:ahalleran@unitedhunteroil.com"ahalleran@unitedhunteroil.com/a/td/tr trtd /td/tr trtdScott Koyich, Presidentbr/ Brisco Capital Partnersbr/ (403) 262-9888sidentbr/ a href="mailto:skoyich@briscocapital.com"skoyich@briscocapital.com/a/td/tr trtd /td/tr trtdor/td/tr trtd /td/tr trtdGraeme Dick, BMgmtbr/ Brisco Capital Partnersbr/ (403) 561-8989br/ a href="mailto:graeme@briscocapital.com"graeme@briscocapital.com/a/td/tr/table

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