Arctic Hunter Energy Inc. has entered into a Sub-Participation Agreement with Alberta Star Development Corp. Under the terms of the agreement, Arctic Hunter has agreed to participate with Alberta Star in the drilling of one test well. Alberta Star holds a 50% working interest in the test well. Western Plains Petroleum Ltd. is the operator.

Under the terms of the Sub-Participation Agreement, Arctic Hunter must pay 50% of Alberta Star's share of the costs to drill, complete and equip or abandon the test well to earn a 25% working interest in the well. Arctic Hunter has no option to drill post-earning wells under the Sub-Participation Agreement. Drilling completion and equipping costs for the well are expected to be $300,000.

Arctic Hunter and Alberta Star have common directors and officers. The Sub-Participation Agreement has been approved by the independent members of Arctic Hunter's Board of Directors. The Sub-Participation Agreement is subject to regulatory acceptance.

Tags: Arctic Hunter Energy Inc