United Hunter Oil & Gas Corp (UHO)

[ICEQUITY]

(TSX:UHO) United’s 65% ownership interest in the Huasna field
Last year, green tech companies were all the rage among venture capitalists and many investors, as the administration vowed to infuse the bourgeoning alternative energy market with thousands of new jobs and begin hastening the inevitable switch to renewables. This year; however, fossil fuels, particularly oil seem to be making resurgence, with everyone from Facebook founder Sean Parker to top Chamber of Commerce official Karen Harbert speaking out on the current energy reality. From an investors stand point, this might mean rethinking last years investment.

“It is not clear anyone will make money on their green-tech investing. It looks like it was a bubble, “said Mr. Parker of the stateside popularity of alternative fuels.

Harbert mirrors Parkers lack of faith in green technologies, urging Congress to reconsider the amount of funding being put into current tech ventures.

“Can we, in the economic times in which we find ourselves, continue to fund the type of research and development and the types of monies that were spent in the stimulus package on very high-cost energy sources?” she asked.

Harbert believes that this sort of funding ignores the energy economy currently in place and should not take financial precedent over the exploration of off-shore drilling and other oil related options.

“Having people really understand our energy reality, rather than energy as we would like it to be, is incredibly important, particularly at this juncture in terms of our economy,” she said. “It may be lovely to think about a world without fossil fuels, but that simply is not America’s energy reality.”

These sorts of statements from powerful political figures and investors represent an attitude shift that may position existing and emerging oil companies for major gains in the coming months.

Among those oil companies is United Hunter Oil (TSX: UHO), which is featured on the World Market Media MicroCap Index. The company has a 65% ownership interest on the 165 acre Hausna field in the San Luis Obispo County of California, which is estimated to have as much as 100 million barrels (bbls) lying underground. (Although according to well information and references appropriate field analogs, the “Discovered Petroleum Initially-In-Place”, or PIIP, puts the estimate of recoverable oil for United at about 3 million barrels).

Those estimates are based on United’s 65% ownership interest in the Huasna field acquired through the Excelaron Joint Venture, a deal sealed in April of 2010. The area hasn’t been drilled much since initial discovery in 1937; only seven wells were drilled in the field between that first year 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.

Now, the rich oil resource is preparing to become fruitful again and it looks like the drilling will become increasingly necessary according to a new report from government agency the Energy information Administration. The report projects that the percentage of total consumption made up by fossil fuels will only fall by 5% by 2035. Considering the limited resources of fossil fuels, the exploration of new sites or older sites where potential has not been fully realized will become increasingly necessary

Date: January 14, 2011 12:58 PM
Publisher: EQUITIES Editors Desk
Source: Brittney Barrett
Categories: US Markets

united hunter oil and gas, equities, the equities group, fossil fuels, green tech
http://www.worldmarketmedia.com/779/section.aspx/2883/post/united-hunter-oil-tsx-uho-could-benefit-from-changing-attitudes-toward-fossil-fuels