Price targets will have to move up:-)
CALGARY, ALBERTA--(Marketwire - April 5, 2011) - 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 horizontal Doig well (60% W.I.) in the Inga/Fireweed area of British Columbia to a total measured depth of approximately 3,100 metres (including approximately a 1,200 metre horizontal lateral). The well was successfully completed with a 12 stage fracture stimulation program using GasFrac's propane frac technology. The final rate after a 43 hour clean-up, and a 27 hour flow test or 70 hour flow period was restricted at 5 mmcf/d (of which approximately 4 mmcf/d was formation gas) and approximately 1,400 bbl/d of condensate for a total rate of approximately 2,040 boe/d at a flowing pressure of 1,070 psi (7,373 kPag). The Company is satisfied with the initial test results and has released testers due to road and lease conditions. Further testing inline will be conducted after well-site equipping is finalized over the next few days. At the initial liquids ratio of over 200 bbls of condensate per mmcf of natural gas and an assumed oil price of $100/bbl Cdn wellhead and a natural gas price of $3.85/GJ Aeco, the Company anticipates initial operating netbacks from the well greater than $47/boe. In the immediate area, Artek holds interests in 16,780 gross (10,094 net) acres or approximately 25 gross (15 net) sections almost all of which it operates, and has an additional 3 sections under option through a farm-in commitment. The test results from the Company's second well, which is a substantial step-out from existing well control, provides strong validation of the Company's geological, geophysical and engineering model for the play and firmly establishes this new core area. Based on mapping, management estimates it has another 37 gross (20 net) horizontal Doig locations on Company or farm-in lands. The production volumes are processed at Artek's operated facility at Inga. The Company plans to drill an additional three horizontal Doig wells at Inga through the remainder of 2011.
In the Sinclair area, the Company has decided to delay the completion of its second Montney horizontal well (50% W.I.) offsetting its 8 mmcf/d discovery well drilled in 2010. The well was drilled to a total measured depth of 4,400 metres and is currently awaiting a 14 stage fracture stimulation. Due to potential cost overruns as a result of break-up, the completion will be postponed until after break-up; expected to be late May to early June.
At Noel, British Columbia, Artek has completed and brought on stream an additional uphole zone in its deep Nikanassin exploration well drilled in early 2010 at a rate of approximately 1.2 mmscf/d. Artek has a 75% working interest in the zone.
Late in the first quarter, Artek spud a shallow horizontal well (100% W.I.) in the Peace River Arch area of Alberta that is targeting light oil and natural gas in the Triassic. The well reached a total measured depth of approximately 2,530 metres (with an approximately 1,125 meter lateral). The well is scheduled for completion over the next several days and if successful will be subject to 5% royalties as per the Alberta government's horizontal drilling incentive program. The Company has several follow up prospects with the potential for oil in the Triassic that it believes can be accessed through horizontal drilling. In all, Artek has approximately 71 net sections of land in the greater north Peace River Arch area that has seen in excess of $90 million invested by industry at Crown land sales since the beginning of the year.
The Company is pleased with the early results achieved from its 2011 capital program which is largely focused on validating our liquids-rich gas and crude oil opportunities accumulated over the last two years to complement its deep natural gas inventory. |
