Artek Exploration Ltd ARKXF

year end reserves increase

[teevee]

 

Artek increases year-end reserves to 29.6 mmboe P+P

2013-03-07 20:02 ET - News Release

 

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Mr. Darryl Metcalfe reports

ARTEK EXPLORATION LTD.- REPORTS SIGNIFICANT 2012 RESERVES GROWTH

Artek Exploration Ltd. is providing an operational update and has released the results of its independent reserve evaluation for the year ended Dec. 31, 2012, as prepared by Sproule Associates Ltd.

2012 HIGHLIGHTS

 

• Increased Proved plus Probable reserves year over year by 30% to 29.6 million boe from 22.9 million boe or 34% after the sale of 0.7 million boe at Leduc Woodbend in January 2012, and Proved reserves increased by 33% to 17.1 million boe from 12.9 million boe.
• Increased Proved plus Probable Oil and NGLs reserves by 47% to 7.3 million boe from 5.0 million boe even after disposing of 0.7 million boe during the year. Oil and condensate comprise 65% of the oil and NGLs proved and probable reserves.
• Achieved all in finding, development and acquisition ("FD&A") costs of $10.96 per boe on Proved plus Probable reserves and $13.39 per boe on Proved reserves including future development costs ("FDC"). Finding and development ("F&D") costs including FDC but excluding acquisitions and dispositions were $12.37 per boe on a Proved plus Probable basis and $15.84 per boe on a Proved basis.
• Achieved a recycle ratio of 2.3 times based on Proved and Probable FD&A of $10.96 per boe and Artek's estimated fourth quarter 2012 operating netback of $25.47 per boe.
• Increased Proved plus Probable reserve value year over year by 17% to $257.4 million from $219.8 million using a 10% discount factor before tax, despite a decrease of 7% in Sproule's forecast oil pricing in the near three year period. The Proved plus probable reserve value increase is 28% when compared to the December 31, 2011 proved plus probable reserve value after the January 2012 Leduc Woodbend sale of 0.7 million boe.
• Replaced 2012 production of 1,013 mboe by 8.4 times with Proved plus Probable reserve additions and 5.6 times with Proved reserve additions.
• Specifically at Inga and Fireweed, proved plus probable reserves increased by 145% to 15.4 million boe as compared to the previous year and proved plus probable reserve value also increased 65% to $151.4 million using a 10% discount factor before tax.
• Estimated capital expenditures for the year ended December 31, 2012 were approximately $59.9 million, including approximately $6.7 million on undeveloped land acquisitions for new exploration plays in the Inga and Peace River Arch areas. Including a $19.4 million disposition of 218 boe/d at Leduc Woodbend, the Company's estimated net expenditures for the year were $40.5 million.
• Net asset value at December 31, 2012 increased to an estimated $251.0 million or $4.51 per diluted share.