Artek Exploration Ltd.
TSX : RTK

Artek Exploration Ltd.

July 13, 2011 16:55 ET

Artek Exploration Ltd. Provides Operations Update and Announces Further Success at Sinclair/Glacier

CALGARY, ALBERTA--(Marketwire - July 13, 2011) - Artek Exploration Ltd. ("Artek" or the "Company") (TSX:RTK) is pleased to provide the following operational update.

As a follow-up to its 2010 horizontal Montney gas discovery, the Company has successfully completed its second horizontal Montney gas well (50% production W.I.) in the Sinclair Glacier area of Alberta. The well was drilled to a total measured depth of 4,400 metres in the first quarter of this year and subsequently completed after breakup with 10 out of a planned 14 stage fracture stimulation program using Nitrogen Foam frac technology. After a 216 hour clean-up test period, and a 22 hour single point flow test, the well flowed at a restricted rate of 6.7 mmcf/d (10% Nitrogen) at a flowing pressure of 1,065 psi (7,342 kPag). The Company is pleased with the test results and has released testers due to road and lease conditions. Subject to third party timing, management expects the well to be on production by the end of the month.

In the Inga area of British Columbia, the Company has spud the first of three consecutive horizontal wells following up on its liquids rich Doig discoveries that tested approximately 1,895 boe/d (1,100 bbls/d condensate) and 2,040 boe/d (1,400 bbls/d condensate) in January and March of this year. The first well is a farm-in on third party lands which will allow the Company to earn 3 sections of land adjacent to Artek's earlier operations. The well is targeted to reach total measured depth of approximately 2,600 metres (including approximately a 700 metre horizontal lateral) and is expected to be completed in early August. The second and third horizontal wells of the summer program are expected to be drilled back to back in August and September and completed consecutively in October and are planned for a total measured depth of 3,000 metres including approximately 1,300 to 1,400 metre horizontal laterals.

Artek's existing producing wells at Inga were temporarily shut-in through June for a scheduled plant turnaround at the Sprectra McMahon facility. Since being brought back on after the turnaround, Artek's horizontal well at 5-11-88-23W6 has been utilizing the current full capacity of the Company's facility and producing at an average restricted rate of approximately 1,510 boe/d of which approximately 695 bbls/d (46%) was natural gas liquids. Artek's first horizontal well at 6-3-88-23W6 is anticipated to be brought back on at restricted rates over the next several weeks as facility capacity allows. Facility expansion operations are underway at Inga and the Company expects to be able to process up to 16 mmcf/d of natural gas and associated liquids through its Inga operated facility by the fourth quarter of 2011. In the immediate area, Artek holds interests in approximately 25 gross (15 net) sections of land almost all of which it operates and has an additional 3 sections under option through the farm-in commitment well that it is currently drilling.

The Company is pleased with the early results achieved from its 2011 capital program at the Inga and Sinclair Glacier properties. Despite extended breakup conditions, the Company still anticipates meeting its previously released 2011 annual production guidance of 2,400 to 2,550 boe/d and exiting the year at approximately 2,900 to 3,100 boe/d.

ADVISORIES

Forward Looking Statements: This press release contains forward-looking statements. Management's assessment of future plans and operations, production estimates, initial production rates, drilling plans, timing of drilling and tie-in of wells, and anticipated processing capacity at Inga, may constitute forward-looking statements under applicable securities laws and necessarily involve risks and uncertainties, some of which are beyond Artek's control, 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.

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.

Contact Information

  • 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
    www.artekexploration.com