news. Artek Exploration Ltd. Announces 2014 Capital Program With Continued Focus on Liquids and Value Growth MarketwiredPress Release: Artek Exploration Ltd. – 29 minutes ago.. . . Email Print ... . .Related Content. . .. . .RELATED QUOTES. . Symbol Price Change RTK.TO 3.68 -0.0300 . .. . . . CALGARY, ALBERTA--(Marketwired - Feb 11, 2014) - Artek Exploration Ltd. ("Artek" or the "Company") (RTK.TO) - Artek entered 2014 at a record production level of approximately 4,800 boe/d (approximately 38% oil and natural gas liquids) based on field estimates. On the back of this success, Artek is pleased to announce its 2014 capital expenditure budget of $61 to $66 million which contemplates the drilling of approximately 14 to 15 gross (9 to 10 net) wells. The currently planned capital program will be weighted 100% to projects targeting oil and condensate with associated natural gas which deliver the best returns and most upside potential for the Company. The program includes 9 to 10 (5.3 to 5.9 net) horizontal wells in the condensate rich Inga/Fireweed area (including 7 Doig horizontals and up to 3 Montney horizontals), 3 horizontal wells targeting Charlie Lake oil in the Mulligan area of Alberta and 2 (0.8 net) vertical wells in the Leduc Woodbend area. The 2014 year program aims to strike a balance between production growth and pool extension investment in the condensate rich Doig play at Inga and the significant upside potential in its exploratory Montney play at Inga and the emerging exploration Charlie Lake oil play in the Mulligan area of Alberta. The Company will monitor commodity prices closely, but assuming the capital program is carried out in its entirety, 2014 average production is forecast to be approximately 4,700 to 4,900 boe/d (38% to 39% liquids) which would represent approximately 30% growth over last year's average production of approximately 3,700 boe/d. 2014 exit production is forecast to be approximately 5,200 to 5,300 boe/d (40% oil and natural gas liquids). Assuming 2013 commodity prices of $4.25 per GJ AECO for natural gas and $95.00 bbl WTI (US$) for crude oil and a foreign exchange rate of 0.93 (CDN$/US$), the Company forecasts to generate cash flow of approximately $41 million to $43 million. The Inga/Fireweed program, represents 70% of planned investment, and targets a balance of development, pool extension, and exploration drilling and production operations investment. Approximately 20% will be directed towards drilling and production operations in Alberta. The remaining 10% will be allocated towards land, seismic and facility optimization investment. Artek has entered into several commodity contracts to protect its cash flow and support its 2014 capital budget. The Company has entered into natural gas production swaps on 10,000 mmbtu/d from April to October 2014 at an average fixed price of $3.64/GJ. Also 400 bbls/d of crude oil production has been fixed at an average price of CDN$100.75/bbl WTI for 2014. Lastly the AECO Basis on 2,000 mmbtu/d of natural gas has been fixed at 12.85% of Henry Hub for 2014. Artek maintains financial flexibility with a $90 million operating line of credit as compared to Artek's 2013 estimated exit net debt of approximately $68.5 million. Operations The Company is currently drilling its second Inga Doig horizontal of the year in the Inga South area at 5-11-88-23 W6M. Artek is currently testing its first Doig horizontal of the year in the Inga South area where in its previous two Inga South Doig wells the Company encountered exceptionally high initial liquids rates. As a result the Company has doubled the number of fractures typically utilized by employing a 28 stage slickwater frac for this operation, its first on the Doig play. Artek has also begun a 20 stage frac on its first Charlie Lake horizontal well of the year. The Company looks forward to reporting on the results of these operations and their implications for upside value in due course. Artek's 2014 forecasts and guidance are best estimates based on certain assumptions including operating results and commodity prices and will regularly be monitored by management and the Board. The Company's aim is to proactively manage our capital program in concert with operational results and fluctuating commodity prices with a goal to maintain financial flexibility and achieve growth targets.