Artek Exploration Ltd. Provides Operational Update
Tuesday, January 07, 2014
Artek Exploration Ltd. Provides Operational Update
19:17 EST Tuesday, January 07, 2014
CALGARY, ALBERTA--(Marketwired - Jan. 7, 2014) - Artek Exploration Ltd. (TSX:RTK) of Calgary, Alberta ("Artek" or the "Company") is pleased to provide the following operations update:
Late in the fourth quarter, Artek drilled a successful Doig horizontal well and Montney horizontal well from the same surface pad at 10-17-87-23W6M in the Inga South area, where the Company had encountered particularly thick Doig sands and high natural gas liquids rates from a previously announced step out well at 13-16-87-23W6M. After a 135 hour flow period, the well was flowing up production tubing at a rate of 4.2 mmcf/d (9% load propane) and 1,003 bbls/d of condensate over the last 24 hours at 907 PSI, or a total rate of 1,639 boe/d (net of load) of which 61% was condensate. The well represents another exceptional result in the emerging Inga South area. The initial liquids rates are some of the highest realized on the play and as a result the Company is considering significantly increasing the number of stages utilized in the fracture stimulation process, consistent with industry developments in adjacent areas. This well represents the second test into a significant southern pool extension to the Company's Inga Doig development. The initial Inga South discovery well at 13-16 which was also tested in the fourth quarter of 2013, produced at an average restricted rate of approximately 1,200 boe/d (approximately 53% liquids) over its first 30 days of production. These step out or trend extension wells are more than three miles south of existing production on undeveloped lands largely acquired in 2013 which lands were not evaluated in the Company's December 31, 2012reserve report.
The second well from the 10-17 surface pad was drilled into the Montney formation to a horizontal lateral distance of approximately 1,900 metres and was set for a 31 slickwater frac "plug and perf" style completion. The completion was initiated in the first week of January 2014 and results are anticipated later in the month. The well is the third test into the Montney by the Company and represents its first test using a significantly higher number of fracs and the slickwater plug and perf completion methodology. The Company and its partner in the Inga area continue to increase their landholdings bringing total Montney mineral rights in the Inga/Fireweed area to over 87,800 (51,500 net) acres or approximately 129 (75 net) sections.
Artek currently has two rigs contracted to get an early start to the 2014 drilling year. The Company moved a 2014 well forward due to rig availability and spud its third Doig horizontal in the Inga South area in December 2013 and is currently drilling out the horizontal portion of the well. Artek has also spud its first 2014 horizontal well in the Mulligan area targeting upper Charlie Lake oil.
The decision to drill the final two wells from the same surface pad to conserve costs, resulted in logistical delays that impacted December production volumes. In addition, Artek experienced unanticipated outages at third party gas processing facilities in British Columbia and temporary disruptions in the NGL pipeline transmission system used to transport its Inga area liquids resulting in significant production downtime during the month of December. These circumstances combined such that Artek only realized fourth quarter average production volumes of approximately 4,000 boe/d based on field estimates. With most of these issues back to normal, current production in the first week of January 2014, based on field estimates, has ranged from 4,800 to 5,000 boe/d (38% liquids) which includes the flush production volumes from the new Inga Doig horizontal referenced above, but includes no production volumes from its third Inga Montney horizontal well referenced earlier. The production number is consistent with the Company's exit guidance of 4,800 to 5,000 boe/d. Artek anticipates releasing its 2014 guidance numbers during the last week of January. |
