Press release from Marketwire
Artek Exploration Ltd. Provides Drilling Results Update at Inga
Wednesday, June 20, 2012
Artek Exploration Ltd. Provides Drilling Results Update at Inga18:34 EDT Wednesday, June 20, 2012CALGARY, ALBERTA--(Marketwire - June 20, 2012) - Artek Exploration Ltd. (TSX:RTK) ("Artek" or the "Company") is pleased to provide the following operational update. The Company has successfully drilled and completed its second of a seven horizontal well program (60% working interest) planned for 2012 at its Doig natural gas and condensate pool in the Inga area of British Columbia. The well has been dually completed in the Doig and an up-hole formation. Because of the pressures encountered from the up-hole zone while drilling, the well was cased and drilled out horizontally in the Doig with smaller tools to a shorter lateral length of approximately 618 metres. The horizontal was completed using a slim-hole 10 stage hydrocarbon fracture stimulation program. After a 70 hour clean-up test period, the horizontal well was flowing at approximately 7.0 mmcf/d of natural gas (14% load C3) and 830 bbls/d of condensate, or a total of approximately 1,834 boe/d over the last 4 hours at a flowing pressure of 1,205 PSI (8,308 kPa). The rate is consistent with management's expectations given the relatively short horizontal length, and the relatively small average frac size of 25 tonnes per frac utilized due to the smaller hole diameter. The up-hole zone was completed in the vertical section of the well and after a short 20 hour clean-up test period was flowing up casing at an average rate of 380 bbls/d of light oil and 1.3 mmcf/d of associated gas for a total of 588 boe/d over the last 7 hours of the test at an average flowing pressure of 70 PSI (483 kPa). The Company plans to dually produce the well and further in-line testing and production history is required for better understanding of the significance of the up-hole zone. The Company is currently drilling its third horizontal well at Inga which it expects to be completed in early to mid-July depending on ground conditions. Up to four additional horizontal wells in Artek's Inga gas/condensate drilling program are planned from late July through November with all wells anticipated to be completed and on production by year end.Average test rates for the Company's first seven horizontal Doig wells in the Inga area have been consistently strong at approximately 2,100 boe/d averaging approximately 1,280 bbls/d of condensate despite variations in horizontal length, frac density, and frac size. Longer horizontals with larger fracs have yielded the best well results to date. The Company's Inga 16-10 well press released in early May, has been producing for a little over a month and has averaged 1,602 boe/d including 834 bbls/d of condensate during its first 30 days of production confirming management's belief that it is one of Artek's best results to date at Inga. In addition to the Inga program, the Company anticipates starting its 4 well (1.6 net) development program targeting Glauconite oil at Leduc Woodbend in July which is anticipated to be completed in September with production from the property forecast to increase from about 380 to 400 boe/d of current production to approximately 500 to 550 boe/d net by year end. The Company's total current production based on field estimates is approximately 3,000 boe/d of which an estimated 40% is oil and natural gas liquids.The Company expects to provide further operational updates throughout the summer and is scheduled to release its 2012 second quarter results after close of market on August 8, 2012. ADVISORIESForward Looking Statements: This document contains forward-looking statements. Management's assessment of future plans and operations, future results from operations, production estimates, commodity mix, initial production rates, drilling plans, timing of drilling and tie-in of wells, productive capacity of new wells, and financial capacity to carry out its planned 2012 capital program 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.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".FOR FURTHER INFORMATION PLEASE CONTACT: Darryl MetcalfeArtek Exploration Ltd.President and Chief Executive Officer(403) 296-4799ORDarcy AndersonArtek Exploration Ltd.Vice President Finance and Chief Financial Officer(403) 296-4775www.artekexploration.comThe Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.