NEWSArtek Provides Operations Update Including Exploration Success at Inga/FireweedCALGARY, ALBERTA, Jan 10, 2011 (Marketwire via COMTEX News Network) --
Artek Exploration Ltd. (TSX:RTK) ("Artek" or the "Company") is pleased to provide the following operational update.
TheCompany has successfully drilled its first horizontal Doig well (60%W.I.) in the Inga/Fireweed area of British Columbia to a total measureddepth of approximately 2,900 metres (including approximately a 1,100metre horizontal lateral). The well was successfully completed with a 7stage fracture stimulation program. After a 5 day clean-up, the wellflowed on an in-line test over a 64 hour test period at an averagerestricted rate of approximately 4.7 mmcf/d and 1,100 bbl/d ofcondensate or 1,895 boe/d at an average flowing tubing pressure of 1,156psi (7,965 KPa). The Company is satisfied with the positive resultsfrom the initial 7 stages of the planned 11 stage fracture stimulationprogram, although it may elect to stimulate additional stages in thefuture. At a liquids ratio of over 200 bbls of condensate per mmcf ofnatural gas and an assumed oil price of $83/bbl Cdn wellhead and anatural gas price of $3.85/GJ Aeco, the Company anticipates operatingnetbacks from the well of up to $41/boe. In the immediate area, Artekholds interests in 16,780 gross acres (10,094 net) or approximately 25gross sections (15 net) and has an additional 3 sections tied up througha farm-in commitment. The test results from this well, in combinationwith its five vertical Doig producers, provides validation to theCompany's geotechnical model and Artek plans the drilling of anadditional two Doig wells after breakup. The volumes are being processedat its operated facility at Inga.
The operational success atInga establishes a new core area for the Company that has scale andrepeatability and where it has control of facilities and development.
Additionally,Artek has successfully drilled and cased a horizontal re-entry (85%W.I.) into a Paleozoic carbonate formation in the Peace River Arch areathat is prospective for natural gas and liquids. The Company plans tocomplete the well using a 5 stage fracture stimulation program whenservices are available which is anticipated to be in early February.
Onthe Alberta/British Columbia border, Artek has spud its second Montneyhorizontal well (50% W.I.) in the Sinclair area where in late 2010 itsfirst Montney well tested in excess of 8 mmcf/d. The well is anticipatedto reach a total measured depth of approximately 4,300 metres in earlyFebruary and plans are for a 12 to 16 stage fracture stimulation priorto spring break-up.
The Company is pleased with the resultsachieved from the ongoing execution of its strategic plan, namely,focusing the majority of its short term capital on liquids rich gas andoil opportunities in existing and potential new core areas whilecontinuing to optimize the value of its deep gas assets for the longterm.
ADVISORIES
Forward Looking Statements: This pressrelease contains forward-looking statements. Management's assessment offuture plans and operations, production estimates, initial productionrates, drilling plans, timing of drilling and tie-in of wells,anticipated netbacks, potential additional drilling locations atInga/Fireweed, and productive capacity of new wells at Inga/Fireweed,may constitute forward-looking statements under applicable securitieslaws and necessarily involve risks and uncertainties, some of which arebeyond Artek's control, including without limitation, risks associatedwith oil and gas exploration, development, exploitation, production,marketing and transportation, loss of markets, volatility of commodityprices, currency fluctuations, imprecision of reserve estimates,environmental risks, competition from other producers, inability toretain drilling rigs and other services, incorrect assessment of thevalue of acquisitions, failure to realize the anticipated benefits ofacquisitions, the inability to fully realize the benefits of theacquisitions, delays resulting from or inability to obtain requiredregulatory approvals and ability to access sufficient capital frominternal and external sources. As a consequence, the Company's actualresults may differ materially from those expressed in, or implied by,the forward looking statements. Forward looking statements orinformation are based on a number of factors and assumptions which havebeen used to develop such statements and information but which may proveto be incorrect. Although Artek believes that the expectationsreflected in such forward-looking statements or information arereasonable, undue reliance should not be placed on forward lookingstatements because the Company can give no assurance that suchexpectations will prove to be correct.
In addition to otherfactors and assumptions which may be identified in this document andother documents filed by the Company, assumptions have been maderegarding, among other things: the impact of increasing competition; thegeneral stability of the economic and political environment in whichArtek operates; the ability of the Company to obtain qualified staff,equipment and services in a timely and cost efficient manner; drillingresults; the ability of the operator of the projects which the Companyhas an interest in to operate the field in a safe, efficient andeffective manner; Artek's ability to obtain financing on acceptableterms; field production rates and decline rates; the ability to replaceand expand oil and natural gas reserves through acquisition, developmentor exploration; the timing and costs of pipeline, storage and facilityconstruction and expansion; the ability of the Company to secureadequate product transportation; future oil and natural gas prices;currency, exchange and interest rates; the regulatory frameworkregarding royalties, taxes and environmental matters in thejurisdictions in which the Company operates; and Artek's ability tosuccessfully market its oil and natural gas products. Readers arecautioned that the foregoing list of factors is not exhaustive.Additional information on these and other factors that could affect theCompany's operations and financial results are included in reports onfile with Canadian securities regulatory authorities and may be accessedthrough the SEDAR website (www.sedar.com) or at the Company's website(www.artekexploration.com). Furthermore, the forward looking statementscontained in this document are made as at the date of this document andthe Company does not undertake any obligation to update publicly or torevise any of the included forward looking statements, whether as aresult of new information, future events or otherwise, except as may berequired by applicable securities laws.
Netbacks: OperatingNetbacks provided herein are calculated by subtracting royalties,operating costs and transportation costs from petroleum and natural gassales calculated on a BOE basis. Operating Netbacks do not have astandardized measure prescribed by Canadian General Accepted AccountingPrinciples and therefore may not be comparable with the calculations ofsimilar measures for other companies.
BOE Conversions: Barrel ofoil equivalent ("BOE") amounts may be misleading, particularly if usedin isolation. A BOE conversion ratio has been calculated using aconversion rate of six thousand cubic feet of natural gas to one barrel.This conversion ratio of six thousand cubic feet of natural gas to onebarrel is based on an energy equivalent conversion method primarilyapplicable at the burner tip and does not represent a value equivalencyat the wellhead.
Artek is a crude oil and natural gasexploration, development and production company headquartered inCalgary, Alberta, Canada. Artek's shares trade on the Toronto StockExchange under the symbol "RTK".
SOURCE: Artek Exploration Ltd.
Artek Exploration Ltd. Darryl Metcalfe President and Chief Executive Officer (403) 296-4799 begin_of_the_skype_highlighting (403) 296-4799 end_of_the_skype_highlighting Artek Exploration Ltd. Darcy Anderson Vice President Finance and Chief Financial Officer (403) 296-4775 begin_of_the_skype_highlighting (403) 296-4775 end_of_the_skype_highlighting www.artekexploration.com
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