CALGARY, ALBERTA--(Marketwired - Jan. 15, 2014) - Artisan Energy Corporation ("Artisan" or the "Corporation") (TSX VENTURE:AEC) announces the following updates to its farm-out of various exploration operations announced on December 30, 2013:
Wilrich Sandstone Gas Test at Tomahawk Property, Central Alberta
Artisan has completed a fracture stimulation and flow test of the Wilrich sandstone on its previously drilled vertical well at 1-20-52-7W5 (the "Wilrich Test") and results have exceeded management's expectations. During 130 hours of clean-up of the fracture stimulation, flow from the Wilrich Test increased to a relatively stable rate of 30,500 cubic metres per day @ 1,325 kPag (1,080 mcf/d @ 192 psig).
The Wilrich Test results validate the mapping and interpretation of a substantial Wilrich sandstone gas pool which underlies the majority of Artisan's 12,160 gross acres (11,840 net acres) of land at its Tomahawk Property. In addition, this vertical well location represents a conservative proxy for the average reservoir thickness and quality in the identified Wilrich gas accumulation on Artisan's Tomahawk Property.
Based on the Wilrich Test results Artisan now believes that development of the Wilrich sandstone on its Tomahawk Property would be more economic than previously anticipated in the current low gas price environment. The Wilrich Test has resulted in new initial productivity expectations for a 1,400 metre Wilrich horizontal well on the Tomahawk Property of 3 to 5 MMcf/d with 50 to 100 barrels per day of natural gas liquids, and an anticipated well cost of approximately $2.5 million to drill, complete, equip and tie-in. Artisan's 100% owned lands at its Tomahawk Property support in excess of 30 development drill locations in the Wilrich sandstone.
The Wilrich Test was completed at no cost to Artisan. As previously announced, the Farmee has earned a 60% working interest in the applicable section of land (640 acres) on which the test was completed.
Test Well at Conrad Property, S.E. Alberta
Artisan has completed the drilling of a test well at 2-32-5-15W4 and is currently plugging the well back and sidetracking the wellbore for use as a future Sawtooth horizontal well (the "Conrad Test Well"). Artisan's management is very encouraged by the sand quality, thickness and oil shows encountered in the Sawtooth sandstone. Subject to funding Artisan intends to return to this wellbore in the next few months and drill the developmental 400m to 500m horizontal lateral in the Sawtooth. Artisan's 100% owned lands at its Conrad Property support in excess of 10 development drill locations in the Sawtooth sandstone.
The Conrad Test Well and evaluation of the zones of interest was completed at no cost to Artisan. As previously announced, the Farmee has earned a 60% working interest in the deep zone of interest on the applicable quarter section of land (160 acres) on which the Conrad Test Well was drilled.
Artisan is an oil and gas producer that holds near a 100% working interest in 27,787 core acres of land in Central and S.E. Alberta. Artisan has development oil projects at Chip Lake and Ferrbank, Central Alberta. Chip Lake is targeting Rock Creek oil production and Ferrybank is targeting Belly River oil production. Artisan also has a Sawtooth development oil project in S.E. Alberta, a Wilrich gas and Nordegg oil exploration project in Central Alberta and is pursuing and testing Bakken oil potential on various lands in S.E. Alberta, having drilled an initial vertical test well to the east of the Ferguson oil pool.
Reported production represents sales before the deduction of royalties. Where amounts are expressed on a barrel of oil equivalent ("boe") basis, natural gas has been converted at a ratio of six thousand cubic feet to one boe. This ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Boe's may be misleading, particularly if used in isolation.
This news release contains forward-looking statements and information ("forward-looking statements") within the meaning of applicable securities laws relating to the estimates of additional oil and gas production, anticipated timing and results from operational activities, the timing and occurrence of capital expenditure and plans for further development. Readers are cautioned to not place undue reliance on forward-looking statements. While Artisan believes the expectations reflected in the forward-looking statements are reasonable, actual results and developments may differ materially from those contemplated by these statements depending on, among other things, issues encountered in drilling, completion and tie-in operations, the amount and timing of capital expenditures and factors beyond Artisan's control. The forward-looking information contained in this news release is made as at the date of this news release and Artisan 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. Readers are urged to consider these factors carefully in evaluating any forward-looking information.
Additional information on other factors that could affect Artisan'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).
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.