Artek Exploration Ltd ARKXF

News.....Still having production issues......

[teevee]

October 16, 2014 21:28 ET

Artek Exploration Ltd. Provides Operations Update

 

 

CALGARY, ALBERTA--(Marketwired - Oct. 16, 2014) - Artek Exploration Ltd. ("Artek" or the "Company") (TSX:RTK) is pleased to provide the following operational update:

In the Inga/Fireweed area, the Company's A-65-I Horizontal Montney well that was completed with a slickwater frac in the second quarter of 2014 has been on production for 30 days and during that time period averaged approximately 903 boe/d of which 513 bbl/d or 55% was free condensate and 67% was total liquids. Based on September 2014 pricing the well generated an operating netback of approximately $50/boe resulting in cash flow of approximately $1.4 million ranking it as one of the top producing Montney wells in British Columbia based on initial data and public production data available. The Company completed the Upper Montney using a 33 stage slickwater frac program. The Company is very pleased with the initial production results and its ramifications for the Company's significant investment over the past two years in 90,517 (53,405 net) acres or 143 (83 net) sections that it operates in the greater Inga/Fireweed area. Industry is developing the play at anywhere from 4 to 8 wells per section in proximal areas. The Company notes that it is seeing steadily improving results using slickwater frac technology while completion costs are continuing to decrease for both the Montney and Doig plays from historical levels as a result of water procurement from its own source wells. Artek sees additional opportunities for cost improvements as its own water disposal facilities become operational in the fourth quarter and as completion efficiencies continue to increase. The Company's next Montney horizontal is expected to spud in late October of this year. In addition, Artek has just finished completing its sixth horizontal Doig well of 2014 at 11-16-87-23W6M in the Inga South area. After an approximate 9 day cleanup test period, it was flowing at an average rate of approximately 2.9 mmcf/d of raw natural gas and 1,577 bbls/day of condensate or 2,061 boe/d (77% free liquids), over the last 24 hours at an average flowing pressure up casing of approximately 544 PSI. The well was completed using a 26 stage slickwater frac which is the highest frac effort to date for the Inga Doig play and early test results suggest it is potentially one of the Company's best Doig wells to date. As with the Montney play, the Company is seeing progressively better results on the Doig play with slickwater fracing. The significant formation and load fluid rates coming from both plays, resulting from the new completion methods, has caused some pipeline bottleneck issues in 2014 resulting in the backing out of historical lower pressure wells for short time periods. In anticipation of this the Company has been incrementally mitigating the pipeline bottleneck issues during the past six months and they will largely be minimized by November of this year at which point the Company anticipates seeing greater incremental impact to corporate production from these new high rate wells. Subject to commodity pricing, five more horizontal wells are expected to be drilled by year end and the Company is on track to meet its exit production guidance of 5,500 to 5,600 boe/d (39% to 40% liquids).