Welcome!

News Feed Item

Artek Exploration Ltd. Provides Operations Update

CALGARY, ALBERTA -- (Marketwired) -- 05/06/14 -- Artek Exploration Ltd. (TSX: RTK) - Artek Exploration Ltd. ("Artek" or the "Company") is pleased to provide the following operational update.

Early in the first quarter at Inga, Artek executed its first slickwater hybrid frac on the horizontal Doig well located at 13-16-87-23W6M (60% W.I.). The well had an average 30 day initial production (IP30) rate of approximately 1,200 boe/d with 67% liquids, which is the highest liquids percentage of all Inga wells drilled to date. Operating netback during the first month of production was approximately $46/boe. Artek also completed and is currently flowing back its second horizontal Doig well (60% W.I.) at Inga that had been planned for a 27-stage slickwater hybrid fracture stimulation treatment. After encountering problems on initial flow back six weeks ago, the Company has performed some remedial work and anticipates finishing the partially completed operation when conditions allow during spring break-up. At the north end of the Doig trend in the Fireweed area, the Company completed the drilling of its third 2014 horizontal Doig well (50% W.I.) ahead of schedule. Previous lower effort Doig horizontal completions at Fireweed have had initial rates ranging from 4 to 8 mmcf/d of natural gas as well as 40 to 80 bbls/mmcf of NGLs. The well is set for a 22-stage frac which is scheduled to commence immediately after spring breakup. Artek is excited about the first high effort water frac at Fireweed.

Artek's first slickwater hybrid frac on the Montney horizontal well (60% W.I.) drilled and tested earlier this year was shut-in for over seven weeks during the first quarter of 2014. The well has now been on production for over 30 days (during which it was subject to some restrictions due to high line pressure) with an average IP30 rate of 440 boe/d of which approximately 64% was liquids. The average free condensate ratio of approximately 209 bbl/mmcf recorded over the period ranks it as one of the highest liquids yield Montney wells in this liquids-rich window of British Columbia. The well is producing at a very low decline with a stable liquids ratio and a realized operating netback of between $40 and $45/boe during the 30-day period. The Company is very encouraged by these metrics and the implications for its 133 (79 net) sections of Montney rights in an area where industry is developing the play at four or more horizontal wells per section.

On March 14, 2014, British Columbia announced the expansion of the Deep Well Royalty Credit Program by extending royalty credits for all horizontal wells with a vertical depth of less than 1,900 metres. Wells drilled after April 1, 2014 will benefit from these changes and will receive a royalty credit of between $0.5 million and $2.8 million, depending on the total measured depth of the well. In conjunction with this change, for wells that are eligible for this expanded credit program, the minimum royalty payable will be 6%. These changes are expected to benefit Artek's future drills in the Inga and Fireweed areas by approximately $0.7 million for its Doig horizontal wells and over $0.9 million per Montney horizontal well.

In the Mulligan region of the Alberta Peace River Arch, the Company drilled its second Charlie Lake horizontal well (100% W.I.)of 2014, which it completed into breakup utilizing a 28-stage fracture stimulation program. In its early days on pump, the well has been producing with limited drawdown at between 400 and 500 boe/d, of which approximately 60% to 65% is oil.

During the first quarter of 2014, Artek experienced production curtailments and restrictions at its key properties relating to high line pressures and water disposal restrictions that have largely been rectified. In addition, as previously mentioned, the Company shut-in its first Montney well of the year for approximately seven weeks to help assess its completion methodology. These events resulted in the Company realizing approximately 395 boe/d less in total corporate production during the period than otherwise would have been achieved. Consequently, Artek's estimated production volumes for the first quarter averaged 4,147 boe/d based on field estimates. Because of these curtailments and the operational delays experienced during the completion of its last Doig well at Inga, Artek expects average 2014 production to be at the lower end of its previously disclosed guidance or approximately 4,700 boe/d. The Company remains on target to achieve its 2014 exit guidance of 5,200 to 5,300 boe/d. Assuming 2014 commodity prices of $5.20/mcf for natural gas and US$95.00/bbl WTI for crude oil and a foreign exchange rate of US$0.90, Artek forecasts to generate annualized cash flow of approximately $44 million to $45 million. The Company invested approximately $29.5 million in capital expenditures during the first quarter including the drilling of 3 (1.7 net) wells at Inga/Fireweed, 2 (2.0 net) wells at Mulligan and 2 (0.8 net) wells at Leduc Woodbend.

Following spring breakup, the Company is planning to drill up to an additional seven horizontal wells in the greater Inga/Fireweed area targeting natural gas and condensate in the Doig and Montney formations, and an additional horizontal well targeting the Charlie Lake formation in the Mulligan area.

The Company is currently scheduled to release its 2014 first quarter financial results after close of market on May 14, 2014.

ADVISORIES

Forward Looking Statements: This press release contains forward-looking statements. Management's assessment of future plans and operations and the timing thereof, future results from operations, production estimates including 2014 average and exit production, commodity mix, initial production rates, the Company's 2014 capital expenditure plans including the number and locations of wells to be drilled, productive capacity of new wells, including the potential of the Company's exploration wells at Inga and Mulligan, financial capacity to carry out its planned 2014 capital program, commodity price forecasts, anticipated impact of the B.C Deep Well Royalty Credit Program and the Company's estimated 2014 cash flow may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, the inability to fully realize the benefits of the acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, the Company's actual results may differ materially from those expressed in, or implied by, the forward looking statements. Forward looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information but which may prove to be incorrect. Although Artek believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward looking statements because the Company can give no assurance that such expectations will prove to be correct.

The recovery and reserve estimates of Artek's reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. In addition to other factors and assumptions which may be identified in this document and other documents filed by the Company, assumptions have been made regarding, among other things: the impact of increasing competition; the general stability of the economic and political environment in which Artek operates; the ability of the Company to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects which the Company has an interest in to operate the field in a safe, efficient and effective manner; Artek's ability to obtain financing on acceptable terms; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development or exploration; the timing and costs of pipeline, storage and facility construction and expansion; the ability of the Company to secure adequate product transportation; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which the Company operates; and Artek's ability to successfully market its oil and natural gas products. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the Company's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) or at the Company's website (www.artekexploration.com). Furthermore, the forward looking statements contained in this document are made as at the date of this document and the Company does not undertake any obligation to update publicly or to revise any of the included forward looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

BOE Conversions: Barrel of oil equivalent ("BOE") amounts may be misleading, particularly if used in isolation. A BOE conversion ratio has been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel. This conversion ratio of six thousand cubic feet of natural gas to one barrel is based on an energy equivalent conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion ratio on a 6:1 basis may be misleading as an indication of value.

Test results and initial production rates: the pressure transient analysis or well test interpretation has not been carried out and thus certain of the test results provided herein should be considered to be preliminary until such analysis or interpretation has been completed. Test results and initial production rates disclosed herein may not necessarily be indicative of long-term performance or of ultimate recovery.

Artek is a crude oil and natural gas exploration, development and production company headquartered in Calgary, Alberta, Canada. Artek's shares trade on the Toronto Stock Exchange under the symbol "RTK".

The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.

Contacts:
Artek Exploration Ltd.
Darryl Metcalfe
President and Chief Executive Officer
(403) 296-4799

Artek Exploration Ltd.
Darcy Anderson
Vice President Finance and Chief Financial Officer
(403) 296-4775

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
The proper isolation of resources is essential for multi-tenant environments. The traditional approach to isolate resources is, however, rather heavyweight. In his session at 18th Cloud Expo, Igor Drobiazko, co-founder of elastic.io, drew upon his own experience with operating a Docker container-based infrastructure on a large scale and present a lightweight solution for resource isolation using microservices. He also discussed the implementation of microservices in data and application integrat...
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at Logz.io, will explore the value of Kibana 4 for log analysis and will give a real live, hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He will examine three use cases: IT operations, business intelligence, and security and compliance. This is a hands-on session that will require participants to bring their own laptops, and we will provide the rest.
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
In his session at 18th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., and Logan Best, Infrastructure & Network Engineer at Webair, focused on real world deployments of DDoS mitigation strategies in every layer of the network. He gave an overview of methods to prevent these attacks and best practices on how to provide protection in complex cloud platforms. He also outlined what we have found in our experience managing and running thousands of Linux and Unix ...
"LinearHub provides smart video conferencing, which is the Roundee service, and we archive all the video conferences and we also provide the transcript," stated Sunghyuk Kim, CEO of LinearHub, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
When you focus on a journey from up-close, you look at your own technical and cultural history and how you changed it for the benefit of the customer. This was our starting point: too many integration issues, 13 SWP days and very long cycles. It was evident that in this fast-paced industry we could no longer afford this reality. We needed something that would take us beyond reducing the development lifecycles, CI and Agile methodologies. We made a fundamental difference, even changed our culture...
Internet of @ThingsExpo, taking place June 6-8, 2017 at the Javits Center in New York City, New York, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @ThingsExpo New York Call for Papers is now open.
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Discover top technologies and tools all under one roof at April 24–28, 2017, at the Westin San Diego in San Diego, CA. Explore the Mobile Dev + Test and IoT Dev + Test Expo and enjoy all of these unique opportunities: The latest solutions, technologies, and tools in mobile or IoT software development and testing. Meet one-on-one with representatives from some of today's most innovative organizations