CALGARY, ALBERTA--(Marketwired - July 22, 2013) - Artisan Energy Corporation ("Artisan" or the "Corporation") (TSX VENTURE:AEC) is pleased to provide the following operations update.
- Current production exceeding 400 boe/d (70% oil and NGLs).
- Drilling success on two additional horizontal oil wells at Ferrybank.
- Completion of solution gas pipeline at Chip Lake and tie-in of initial horizontal well.
- Pooling of Banff/Bakken prospective acreage in Southern Alberta and drilling of vertical Banff/Bakken test well to complete earning.
Artisan's two additional 1,000m horizontal length Belly River oil wells are each producing in excess of 100 bbl/d of oil and are expected to exceed the Corporation's 60 day initial production expectation of approximately 75 bbl/d of oil per well. The two wells were initially brought on production in the middle of June, but required clean-out work-overs to drill out the balls that did not properly dissolve in the brine frac fluid after the fracture stimulation process. The work-over operations were successfully completed in July. Artisan currently has three horizontal oil wells producing from the Ferrybank pool and has plans to construct an 800m pipeline to capture the associated gas production, which represents an additional 50 boe/d. Artisan has up to an additional eight horizontal oil drilling locations for future considerations on its existing Ferrybank lands.
The Corporation has completed a solution gas pipeline at Chip Lake and brought its initial horizontal Rock Creek well on production. The well is currently flowing 30 bbl/d of oil and 750 mcf/d of raw gas, at a restricted rate due to short term compression limitations at the third party operated gas plant. Additional NGL recovery of approximately 20 bbl/d is anticipated from the gas, resulting in approximately 50 bbl/d of total oil and NGLs and approximately 100 boe/d of gas after shrinkage. Subject to available funds, Artisan can drill an additional horizontal Rock Creek well from its existing Chip Lake pad and five additional horizontal Rock Creek wells from a nearby approved multi-well pad. Future wells will target areas of the Chip Lake pool that are expected to produce at a higher oil ratio. Artisan has up to an additional 26 horizontal Rock Creek drilling locations for future considerations on its existing Chip Lake Lands.
Artisan completed a seven section pooling agreement with a third party industry partner, contributing two sections and retaining a 50% working interest in all seven sections. Artisan has since drilled a vertical test well enabling the Corporation to earn an additional 30% in the sections resulting in an 80% working interest in the seven sections. The seven sections are on trend to the East with the Ferguson Banff/Bakken light oil pool. The Corporation was encouraged by the results of the vertical test well, however the Ferguson pool is being developed by an independent third party with horizontal drilling and thus the Corporation is currently reviewing a number of alternatives to develop its acreage to the East of the pool.
Artisan's prospective Southern Alberta acreage complements the Corporations key properties; three development oil projects at Chip Lake and Ferrybank in Central Alberta and Conrad in SE Alberta, as well as a liquids rich gas project with prospective oil opportunities at Tomahawk / Bigoray in Central Alberta.
Reported production represents Artisan's ownership share of 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. References to natural gas liquids ("liquids") include condensate, propane, butane and ethane and one barrel of liquids is considered to be equivalent to one boe.
This news release contains forward-looking statements and information ("forward-looking statements") within the meaning of applicable securities laws relating to 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.