Hunter Technology Corp. (HOILF)

[SeaOhToo]

The Company has reported undeveloped reserves for the year ended December 31, 2014, within the meaning of that term under NI 51-101, either proved, probable and possible reserves. These undeveloped reserves relate to the continuing evaluation of the property interests at the Milnesand and Chaveroo Fields. The proved undeveloped reserves represented in the table above are the reserves attributable to drilling 20 infill horizontal wells in Milnesand Field and 18 infill horizontal wells in Chaveroo Field. Gross reserves for the Milnesand program were estimated at 3,200 MBO with an average of 160 MBO per horizontal well. The Chaveroo Field program estimates 2,700 MBO with an average of 150 MBO per horizontal well. The reserves are based on a type curve developed from the production data of the Milnesand wells #141H and #522H and from analogous San Andres fields with infill horizontals. The type curve assumes fracture stimulating a lateral length of 4,600 feet, an initial rate of 190 BOPD and a life of approximately 22 years. As part of the ongoing evaluation of Milnesand and Chaveroo Fields, the Company contracted Nutech Inc. to normalize and reprocess over two hundred well logs. The well logs were tied to existing core data and original oil in place (OOIP) was calculated using the new data. In Milnesand Field, the 3,200 MBO represents a recovery factor of 2.5% of the approximately 70 MMBOOIP. Chaveroo’s estimated 2,700 MBO represents a recovery factor of 1% of the 248 MMBOOIP.


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