Artek Exploration Ltd. has provided the following operations update.
As a result of its operational success in late 2014 including record production rates from Artek's fourth quarter Montney and Doig horizontals in its Inga/Fireweed area of operations and some of the highest IP60 rates for liquids seen in British Columbia this year, the Company is in a position to be conservative in its capital expenditure program through the first half of 2015. Over the first 60 days of production, the Doig well at 5-28-87-23W6M (60% working interest) produced at a gross average rate of 1,689 boe/d (68% liquids) and the Doig well at 5-27-87-23W6M (60% working interest) produced at a gross average rate of 1167 boe/d (71% liquids). Over the first 54 days of production, the Montney well at A-6-A/94-A-13 (50% working interest) produced at a gross average rate of 856 boe/d (63% liquids). Due to the sharp decline in commodity prices in recent months, the Company's focus in early 2015 will be on managing its balance sheet through this low price cycle.
The Company anticipates drilling two wells in the first half of 2015 which, along with some production and facility optimization, will result in approximate capital expenditures of US$8 to US$10 million. The first well, which is an Inga Montney horizontal at B7-29-87-23W6M (50% working interest), has been drilled and cased and is set for a 36 stage slickwater frac scheduled for March 2015. The second well planned is a Doig horizontal which is scheduled to spud in the second quarter of this year. With its recent operational success, the Company is currently forecasting average production of 5000 boe/d to 5200 boe/d during the first quarter of 2015, of which approximately 2250 bbl/d to 2350 bbl/d or 45% is expected to be oil and natural gas liquids. This represents a 23% increase in production over the same period last year and a 52% increase in total liquids production volumes compared to the first quarter of last year. In addition, the Company is investigating ways to realize value on its approximately 600 boe/d of non-core production (40% liquids) to provide it greater flexibility to focus on its core assets at Inga/Fireweed, British Columbia.
Adapted from press release by Joe Green