Artek Exploration Ltd.

Artek Exploration Ltd.

September 07, 2011 18:33 ET

Artek Exploration Ltd. Provides Operations Update and Announces New Oil Discovery at Inga

CALGARY, ALBERTA--(Marketwire - Sept. 7, 2011) - Artek Exploration Ltd. (TSX:RTK) ("Artek" or the "Company") is pleased to provide the following operational update.

In the Inga area of British Columbia, the Company has successfully drilled and completed a new oil pool horizontal discovery well (60% working interest) in the Doig formation offsetting its first two horizontal Doig wells in the area that tested 1,895 boe/d and 2,040 boe/d respectively (approximately 55% to 65% condensate) earlier this year. After a 122 hour (5 day) extended clean-up test, the well was flowing inline at a restricted rate of 1,070 barrels of oil per day and 3.7 mmcf/d of natural gas or approximately 1,650 boe/d at a flowing pressure of 1,830 psi (approximately 10% drawdown). Load propane was approximately 6% at the end of the test. The well was drilled with a 665 metre horizontal lateral and completed with a seven-stage hydrocarbon frac program. The well was a third party farm-in earning Artek and its partner three sections of land with the potential for follow-up drill locations. The crude oil, liquids and associated natural gas will be processed at the Company's owned and operated facility.

The discovery is part of a three well horizontal well program planned for the Inga area in the second half of 2011. The second well of the program has been cased and is currently drilling out the horizontal lateral portion and the third well is anticipated to spud the last week of September. Both wells are expected to be completed back to back in late October into November. Due to the drilling success and in anticipation of future volumes, the Company is expanding its facility at Inga. The expansion is expected to be completed by mid-October and we anticipate being able to process up to 16 mmcf/d of gross natural gas volumes and the associated crude oil and liquids.

Results to date in the Inga area and the new oil discovery reinforce management's confidence in its geotechnical model for the Doig play. Artek has recently acquired approximately 347 km2 of 3D seismic data to further expand the play. In the Inga area, Artek holds interests in approximately 25 gross (15 net) sections of land, the majority of which the Company operates and maps 39 gross (22 net) horizontal drilling locations on its lands.

At Sinclair, Alberta, the Company's second Montney horizontal gas well (50% working interest) that tested at a restricted rate of 6.7 mmcf/d this summer has been producing for two weeks at an average rate of approximately 4.2 mmcf/d. In the greater Sinclair and Cutbank area, Artek has accumulated 19 gross (13.5 net) sections of Montney rights.

The Company is pleased with the early results achieved from its 2011 capital program focused on oil and liquids production and management is comfortable it will meet its previously released 2011 annual production guidance of 2,400 to 2,550 boe/d and meet or exceed its exit guidance of approximately 2,900 to 3,100 boe/d.


Forward Looking Statements: This press release contains forward-looking statements. Management's assessment of future plans and operations, production estimates, initial production rates including 2011 year-end guidance, drilling plans, timing of drilling and tie-in of wells, anticipated facility expansion timing and 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 ( or at the Company's website ( 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