Artek Exploration Ltd. (TSX:RTK) of Calgary, Alberta ("Artek" or the "Company")
is pleased to provide an operational update and announce the results of its
independent reserve evaluation for the year ended December 31, 2013 (the
"Sproule Report") as prepared by Sproule Associates Limited ("Sproule").
2013 HIGHLIGHTS
-- Increased Proved plus Probable reserves year over year by 43% to 42.5
million boe from 29.6 million boe and also increased Proved reserves by
25% to 21.4 million boe from 17.1 million boe.
-- Increased Proved plus Probable Oil and NGLs reserves year over year by
48% to 10.8 million boe from 7.3 million boe and also increased Proved
Oil and NGLs reserves by 24% to 5.6 million boe from 4.5 million boe.
Oil and condensate comprise 60% of the oil and NGLs proved plus probable
reserves.
-- Achieved all in finding, development and acquisition ("FD&A") costs of
$14.84 per boe on Proved plus Probable reserves. Finding and development
("F&D") costs including FDC but excluding acquisitions and dispositions
were $15.68 per boe on a Proved plus Probable basis. Approximately $14.2
million or 14% of 2013 capital expenditures were invested in facility
expansions or additions, undeveloped land and seismic.
-- Increased Proved plus Probable reserve value year over year by 52% to
$392.3 million from $257.4 million using a 10% discount factor before
tax.
-- Replaced 2013 production of 1,349.5 mboe by 10.6 times with Proved plus
Probable reserve additions and 4.2 times with Proved reserve additions.
-- Achieved a recycle ratio of 1.4 times based on Proved and Probable FD&A
of $14.84 and Artek's estimated fourth quarter 2013 operating netback of
$20.47 per boe but using the Company's estimated January and February
2014 operating netback of $30.70 per boe the recycle ratio would be 2.1
times.
-- Specifically at Inga and Fireweed, proved plus probable reserves
increased by 73% to 26.6 million boe as compared to the previous year
and proved plus probable reserve value also increased 79% to $270.8
million using a 10% discount factor before tax.
-- Estimated capital expenditures for the year ended December 31, 2013 were
approximately $98.7 million, including $14.3 million for the Fireweed
acquisition and approximately $4.4 million on undeveloped land
acquisitions for new exploration plays in the Inga and Peace River Arch
areas.
-- Net asset value at December 31, 2013 increased 20% year over year to
$5.43 per diluted share.
The following are reserves and operational highlights, details of which are
provided later in the press release.
Gross Reserves at December 31 2013 2012 % change
----------------------------------------------------------------------------
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Proved Developed Producing (mboe) 5,084 4,321 18
Proved Reserves (mboe) 21,394 17,053 25
Proved Plus Probable Reserves (mboe) 42,528 29,639 43
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Proved FD&A including change in FDC ($/boe) (1)(2) 27.39 13.39
Proved Plus Probable FD&A including change in FDC
($/boe) (1)(2) 14.84 10.96
Proved FD&A excluding change in FDC ($/boe) (1)(2) 17.36 7.77
Proved Plus Probable FD&A excluding change in FDC
($/boe) (1)(2) 6.94 5.21
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Fourth quarter Operating Netback ($/boe) (1) 20.47 25.47
Proved Plus Probable Recycle Ratio (1) 1.4 2.3
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2013 Wells Drilled Gross Net % Total
----------------------------------------------------------------------------
Crude Oil 4 2.2 22
Natural gas 12 7.6 78
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Total 16 9.8 100
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1. Certain financial and operating information included in this press
release for the quarter and year ended December 31, 2013, such as finding
and development costs, production information, operating netbacks,
recycle ratios and net asset value calculations are based on unaudited
financial results for the year ended December 31, 2013 and are subject to
the same limitations as discussed under forward-looking statements
outlined at the end of this release. These estimate amounts may change
upon completion of the audited financial statements for the year ended
December 31, 2013 and those changes may be material.
2. Artek calculates finding, development and acquisition costs which
incorporate the costs and associated reserve additions and changes in
future development costs related to acquisitions and dispositions. Since
acquisitions and divestitures have had a significant impact on Artek's
annual reserve replacement costs, Artek believes that FD&A costs provide
a meaningful portrayal of Artek's cost structure.
AREA UPDATE
At Inga/Fireweed, the Company increased proved plus probable reserves by 73% to
26.6 million boe as compared to the previous year and value on a NPV10 BT basis
increased 79% to $270.8 million. The Company continues to add to its undeveloped
land holdings at Inga/Fireweed investing approximately $3.5 million in 2013.
Artek now holds approximately 88,750 (52,400 net) acres or approximately 133 (79
net) sections of Montney mineral rights in the Inga/Fireweed area, up from
approximately 46,000 (27,600 net) acres or 81 sections (49 net). Industry
activity for the Montney formation in the area remains strong on all fronts with
recent industry acquisition metrics range of up to $4,000 per acre reinforcing
the Company's belief in the long term value of its holding along the main
transportation corridor in NE British Columbia.
The Company has begun its 2014 Inga/Fireweed horizontal well program that will
see it drill up to 10 (5.9 net) wells targeting condensate with associated
natural gas. Up to 7 (4.1 net) of the wells planned will focus on Artek's
condensate rich Doig play and up to 3 (1.8 net) horizontal wells will be
targeting the Montney formation which the Company believes is liquids rich. The
Company's first Doig horizontal of the year was recently completed in the
liquids rich Inga South area using a slickwater hybrid frac treatment and tested
at the highest rate of liquids realized to date on the play. After a 204 hour
clean up and flow period, the well was flowing at a restricted rate that
averaged 2.9 mmcf/d and 1,539 bbls of condensate per day or 2,015 boe/d over the
last 24 hours at a flowing pressure of 631 PSI and realized an average free
liquids ratio in excess of 500 bbls/mmcf. In January, Artek completed its first
slickwater hybrid fraced Montney well in the Inga area that was previously
reported as testing at an average rate of 794 boe/d including 503 bbls/d of free
condensate over a 102 hour production test period. This well is currently shut
in along with other producers as they are being backed out by the most recent
Doig well but it is expected to be back on production in due course.
In the Peace River Arch (PRA) area, the Sproule Report assigned proved plus
probable reserves of 3.1 million boe with a NPV10 BT value of approximately
$32.8 million. Three 100% W.I. horizontal wells targeting Charlie Lake oil are
planned at Mulligan in the PRA area of Alberta. Artek has approximately 20,320
gross acres or 32 (30 net) sections of land in the immediate Mulligan area that
the Company believes is highly prospective for the Charlie Lake zone and
approximately 46,720 gross acres or 73 sections (63 net) in the Greater Peace
River Arch fairway. The Company has recently drilled and completed its first
2014 horizontal well in the Charlie Lake at Mulligan and after a 75 hour cleanup
period, the well was turned over to production and is currently producing with
artificial lift at rates of approximately 600 to 700 boe/d (50% to 65% liquids)
with very low drawdown based on field estimates. In January, the Company drilled
and completed a 100% water disposal well in the area which should cause the
Mulligan operating netbacks to increase from approximately $30/boe to over
$40/boe beginning in March of 2014. The Company plans to drill 2 (2.0 net) more
Charlie Lake horizontal wells in 2014.
At the Company's producing oil property at Leduc Woodbend, the Sproule Report
assigned proved plus probable reserves of approximately 1.2 million boe and a
NPV10 BT value of approximately $33.5 million. Artek plans to drill 2 (0.8 net)
vertical development wells targeting Glauconitic oil during 2014.
In the Deep Basin area, the Sproule Report assigned proved plus probable
reserves of approximately 11.6 million boe and a NPV10 BT value of $54.8
million.
For 2014, Artek is planning capital expenditures of $61 million to $66 million
based upon the drilling of approximately 14 to 15 gross (5.3 to 5.9 net) wells.
The capital program will be weighted 100% to projects targeting oil and
condensate with associated natural gas. The Company forecasts 2014 production to
average 4,700 to 4,900 boe/d.
RESERVES
The reserves data set forth below is based upon an independent reserves
assessment and evaluation prepared by Sproule with an effective date of December
31, 2013 (the "Sproule Report"). The following presentation summarizes the
Company's crude oil, natural gas liquids and natural gas reserves and the net
present values before income tax, of future net revenue for the Company's
reserves using forecast prices and costs based on the Sproule Report. The
Sproule Report has been prepared in accordance with the standards contained in
the COGE Handbook and the reserve definitions contained in NI 51-101.
All evaluations and reviews of future net cash flows are stated prior to any
provisions for interest costs or general and administrative costs and after the
deduction of estimated future capital expenditures for wells to which reserves
have been assigned. It should not be assumed that the estimates of future net
revenues presented in the tables below represent the fair market value of the
reserves. There is no assurance that the forecast prices and cost assumptions
will be attained and variances could be material. The recovery and reserve
estimates of our crude oil, natural gas liquids and natural gas reserves
provided herein are estimates only and there is no guarantee that the estimated
reserves will be recovered. Actual crude oil, natural gas and natural gas
liquids reserves may be greater than or less than the estimates provided herein.
See "Information Regarding Disclosure on Oil and Gas Reserves and Operational
Information" for additional cautionary language, explanations and discussions
and "Forward Looking Information and Statements" for a statement of principal
assumptions and risks that may apply.
Reserves Summary
The Company's total gross proved reserves increased by 25% in 2013 to 21.4
million boe and proved plus probable reserves increased by 43% to 42.5 million
boe.
The following table provides summary reserve information based upon the Sproule
Report and using the published Sproule (2013-12-31) price forecast.
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Natural gas Barrels of oil
Oil (1) liquids Natural gas equivalent
----------------------------------------------------------------------------
Gross Gross Gross Gross
(2) Net (3) (2) Net (3) (2) Net (3) (2) Net (3)
(Mbbl) (Mbbl) (Mbbl) (Mbbl) (Mmcf) (Mmcf) (Mboe) (Mboe)
Proved
Producing 997 803 588 468 20,997 16,355 5,084 3,998
Non-producing 56 46 16 13 1,857 1,596 382 325
Undeveloped 2,280 1,841 1,631 1,306 72,098 58,833 15,928 12,952
-------------- -------------- ---------------- --------------
Total proved 3,333 2,691 2,235 1,787 94,952 76,785 21,394 17,275
Probable 3,121 2,470 2,150 1,701 95,181 74,076 21,134 16,517
-------------- -------------- ---------------- --------------
Total proved
plus probable 6,454 5,161 4,385 3,488 190,133 150,861 42,528 33,792
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Notes:
1. Reflects light and medium crude oil, other than 61 mbbl of proved and 220
mbbl of proved plus probable gross heavy oil reserves.
2. "Gross" reserves means Artek's working interest (operating and non-
operating) share before deduction of royalties and without including any
royalty interest of the Company.
3. "Net" reserves means Artek's working interest (operated and non-operated)
share after deduction of royalty obligations, plus Artek's royalty
interest in reserves.
4. Oil equivalent amounts have been calculated using a conversion rate of
six thousand cubic feet of natural gas to one barrel of oil.
5. May not add due to rounding.
Reserves Values
The estimated before tax future net revenues associated with Artek's reserves
effective December 31, 2013 and based on the published Sproule (2013-12-31)
future price forecast are summarized in the following table:
----------------------------------------------------------------------------
Discounted at:
------------------------
($ Thousands) Undiscounted 10% 15% 20%
----------------------------------------------------------------------------
Proved
Producing 68,553 67,031 62,671 58,532
Non-producing 5,941 3,846 3,183 2,677
Undeveloped 233,742 112,274 81,960 61,067
------------ ------- ------- -------
Total proved 308,236 183,151 147,814 122,277
Probable 416,561 209,194 160,014 126,528
------------ ------- ------- -------
Total proved plus probable 724,797 392,345 307,828 248,805
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Notes:
1. The estimated future net revenues are stated before deducting future
estimated site restoration costs and are reduced for estimated future
abandonment costs and estimated capital for future development associated
with the reserves.
2. Prior to provision of income taxes, interest, debt service charges and
general and administrative expenses. It should not be assumed that the
undiscounted and discounted future net revenues estimated by Sproule
represent the fair market value of the reserves.
3. Net present value after income taxes for total proved reserves is $170.6
million and for total proved plus probable reserves is $323.4 million
based on a discount factor of 10%.
4. May not add due to rounding.
Reserves Reconciliation
-- The following summary reconciliation of Artek's gross reserves compares
changes in the Company's reserves as at December 31, 2013 to the
reserves as at December 31, 2012 based on the Sproule (2013-12-31)
future price forecast. Proved plus Probable reserves increased year over
year by 43% to 42.5 million boe from 29.6 million boe. Proved reserves
increased by 25% to 21.4 million boe from 17.1 million boe.
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total Proved
Total Proved Probable plus Probable
----------------------------------------------------------------------------
(Mboe) (Mboe) (Mboe)
Balance December 31, 2012 17,053 12,586 29,639
Extensions and improved recoveries 4,342 8,331 12,673
Infill 1,625 620 2,245
Technical revisions (1,280) (992) (2,272)
Discoveries - - -
Acquisitions 1,081 599 1,680
Dispositions - - -
Economic factors (78) (10) (88)
Production (1,349.5) - (1,349.5)
----------------------------------------------------------------------------
Balance December 31, 2013 21,394 21,134 42,528
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Notes:
1. "Gross" reserves means Artek's working interest (operating and non-
operating) share before deduction of royalties and without including any
royalty interest of the Company.
2. May not add due to rounding.
Capital Efficiency Highlights - 2013
The efficiency of the Company's capital program for the year ended December 31,
2013 is summarized below. NI 51-101 specifies how finding and development
("F&D") costs should be calculated if they are reported. Essentially NI 51-101
requires that the exploration and development costs incurred in the year along
with the change in estimated future development costs be aggregated and then
divided by the applicable reserve additions. The calculations specifically
exclude the effects of acquisitions and dispositions on both reserves and costs.
By excluding the effects of acquisitions and dispositions, Artek believes that
F&D costs do not fully reflect Artek's ongoing reserve replacement costs. Since
acquisitions and dispositions can have a significant impact on Artek's annual
reserve replacement costs, Artek believes that finding, development and
acquisition ("FD&A") costs provide a meaningful portrayal of Artek's cost
structure.
Artek invested approximately $14.2 million or 14% of its total 2013 capital
expenditures expanding its facilities and pipelines at Inga and Mulligan and
also increased its exploration land holdings at Inga by approximately 60%. In
addition, the Company invested aggressively in drilling three exploration
horizontal wells in the Inga Montney and Mulligan exploration plays. Including
these strategic investments for long term growth, Artek achieved all in FD&A
costs of $14.91 (2012 - $10.96) per boe on Proved plus Probable reserves and
$27.18 (2012 - $13.39) per boe on Proved reserves including future development
costs ("FDC"). FD&A costs for the last three years averaged $14.14 per boe on a
Proved and Probable basis and $19.89 per boe on Proved reserves including FDC.
F&D costs including FDC but excluding acquisitions and dispositions were $15.77
(2012 - $12.37) per boe on a Proved plus Probable basis and $30.45 (2012 -
$15.84) per boe on a Proved basis. F&D costs including FDC but excluding
acquisitions and dispositions for the last three years averaged $14.88 per boe
on a Proved and Probable basis and $21.14 on Proved reserves including FDC.
----------------------------------------------------------------------------
Proved plus
Proved Probable
----------------------------------------------------------------------------
Exploration and Development expenditures
($000's) (note 2) 84,428 84,428
Acquisitions, net of dispositions ($000's)
(note 2) 14,320 14,320
Change in future development capital ($000's)
- Exploration and Development 57,118 112,560
- Acquisitions, net of dispositions - -
------------------------------
155,866 211,308
------------------------------
Reserve additions after revisions (Mboe)
- Exploration and Development 4,609 12,558
- Acquisitions, net of dispositions 1,081 1,680
------------------------------
5,690 14,238
------------------------------
------------------------------
Finding & Development Costs ($/boe) (note 1) 30.71 15.68
------------------------------
Finding, Development & Acquisition Costs
($/boe) (note 2)
Exploration and development 30.71 15.68
Acquisitions, net of dispositions 13.25 8.52
------------------------------
Total FD&A ($/boe) 27.39 14.84
------------------------------
Reserves Replacement Ratio (note 3) 4.2 10.6
----------------------------------------------------------------------------
Notes:
1. The aggregate of the exploration and development costs incurred in the
most recent financial year and the change during that year in estimated
future development costs generally will not reflect total finding and
development costs related to reserve additions for that year.
2. 2013 figures include information based on estimated unaudited financial
results that may change on the completion of the audited financial
statements.
3. Calculated by dividing the 2013 reserve additions by the 2013 total
production.
NET ASSET VALUE
The following table provides management's calculation of Artek's estimated net
asset value at December 31, 2013 based on the estimated future net revenues
associated with Artek's proved plus probable reserves before income tax and
discounted at 10% as presented in the Sproule Report and an independent third
party evaluation of Artek's undeveloped land.
----------------------------------------------------------------------------
----------------------------------------------------------------------------
($ thousands)
----------------------------------------------------------------------------
Proved plus probable reserves - discounted at 10% 392,345
Undeveloped Land (note 1) 55,619
Estimated working capital deficiency as at December 31, 2013
(notes 2 & 3) (68,451)
Proceeds from dilutive stock options 10,322
----------------------------------------------------------------------------
Net asset value 389,835
Diluted Common shares outstanding (thousands) 71,810
----------------------------------------------------------------------------
Net asset value per share 5.43
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Notes:
1. Based on an independent land evaluation. See "Land Holdings".
2. Figures include information based on unaudited financial results that may
change.
3. Working capital deficiency includes an estimate of the Company's accounts
receivable and prepaid expenditures less accounts payable and accrued
liabilities and bank debt as at December 31, 2013.
LAND HOLDINGS
The Company retained an independent third party to assess the fair market value
of the Company's undeveloped land holdings as at December 31, 2013. The
evaluation was completed by Seaton-Jordan & Associates Ltd. using industry
activity levels, third party transactions and land acquisitions that occurred in
proximity to Artek's undeveloped lands during the past year. The independent
land evaluation report indicates a value of $55.6 million. Artek increased its
net undeveloped land holdings by approximately 36% in 2013.
A summary of the Company's land holdings at December 31, 2013 is outlined below:
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(acres) Developed Undeveloped Total
Gross Net Gross Net Gross Net
----------------------------------------------------------------------------
Alberta 33,369 23,523 83,103 74,546 116,472 98,069
British Columbia 42,794 22,093 153,212 90,152 196,006 112,245
----------------------------------------------------------------------------
Total 76,163 45,616 236,315 164,698 312,478 210,314
----------------------------------------------------------------------------
----------------------------------------------------------------------------
CORPORATE DEVELOPMENTS
Consistent with the Company's long term growth plans and as part of its long
term strategy to realize greater operating efficiencies around its core
properties, Artek's Board of Directors has promoted Mr. Bruce Nociar from Vice
President of Production to Chief Operating Officer. Mr. Nociar has been with the
Company for approximately 6 years and has taken on increasingly greater roles in
capital planning, forecasting, and the management of all aspects of operations
with the Company over the past several years. He brings 22 years of experience
with various senior and junior oil and gas companies and a broad base of
facility, operations, and reservoir engineering experience to Artek and is well
deserving of his expanded role with the Company.
Artek anticipates releasing its 2013 year end audited financial statements on
March 19, 2014.
CAUTIONARY STATEMENTS
Unaudited financial information
Certain financial and operating information included in this press release for
the quarter and year ended December 31, 2013, such as finding and development
costs, production information and net asset value, are based on estimated
unaudited financial results for the quarter and year then ended, and are subject
to the same limitations as discussed under Forward Looking Information set out
below. These estimated amounts may change upon the completion of audited
financial statements for the year ended December 31, 2013 and changes could be
material.
Information Regarding Disclosure on Oil and Gas Reserves and Operational Information
Our oil and gas reserves statement for the year ended December 31, 2013, which
will include complete disclosure of our oil and gas reserves and other oil and
gas information in accordance with NI 51-101, will be contained within our
Annual Information Form which will be available on our SEDAR profile by March
31, 2014 at www.sedar.com. In relation to the disclosure of estimates of
reserves and reserve values relating to individual properties that represent
less than all of the Company's reserves, such estimates may not reflect the same
confidence level as estimates of reserves and future net revenue for all
properties, due to the effects of aggregation.
In relation to the disclosure of net asset value ("NAV"), the NAV table shows
what is normally referred to as a "produce-out" NAV calculation under which the
current value of the Company's reserves would be produced at forecast future
prices and costs and do not necessarily represent a "going concern" value of the
Company. The value is a snapshot in time and is based on various assumptions
including commodity prices and foreign exchange rates that vary over time. It
should not be assumed that the future net revenues estimated by Sproule
represent the fair market value of the reserves, nor should it be assumed that
Artek's estimated value of its undeveloped land holdings represent the fair
market value of the lands.
Forward-looking information and statements
This news release contains certain forward-looking information and statements
within the meaning of applicable securities laws. The use of any of the words
"expect", "anticipate", "continue", "estimate", "may", "will", "project",
"should", "believe", "plans", "intends" and similar expressions are intended to
identify forward-looking information or statements. In particular, but without
limiting the forgoing, this news release contains forward-looking information
and statements pertaining to the following: the recognition of significant
additional reserves under the heading "Reserves"; the volumes and estimated
value of Artek's oil and gas reserves; the life of Artek's reserves; the volume
and product mix of Artek's oil and gas production; future oil and natural gas
prices and Artek's commodity risk management programs; future liquidity and
financial capacity; the Company's 2014 capital expenditure plans; management's
assessment of future plans and results from operations and operating metrics;
future costs, expenses and royalty rates; future interest costs; the exchange
rate between the $US and $Cdn; future hedging activities; future development,
exploration, acquisition and development activities and related capital
expenditures; the number of wells to be drilled and completed and related
production expectations including 2014 average production forecast; the amount
and timing of drills, completions and capital projects; and the ability to
adequately finance the same; operating costs; management's belief in the
prospectivity of exploratory lands at Inga and in the PRA; and the total future
capital associated with development of reserves and resources.
The recovery and reserve estimates of Artek's reserves and resources provided
herein are estimates only and there is no guarantee that the estimated reserves
or resources will be recovered. In addition, forward-looking statements or
information are based on a number of material factors, expectations or
assumptions of Artek which have been used to develop such statements and
information but which may prove to be incorrect. Although Artek believes that
the expectations reflected in such forward-looking statements or information are
reasonable, undue reliance should not be placed on forward-looking statements
because Artek can give no assurance that such expectations will prove to be
correct. In addition to other factors and assumptions which may be identified
herein, assumptions have been made regarding, among other things: results from
drilling and development activities consistent with past operations and
offsetting wells; the continued and timely development of infrastructure in
areas of new production; continued availability of debt and equity financing and
cash flow to fund Artek's current and future plans and expenditures; the impact
of increasing competition; the general stability of the economic and political
environment in which Artek operates; the timely receipt of any required
regulatory approvals; the ability of Artek to obtain qualified staff, equipment
and services in a timely and cost efficient manner; drilling results; the
ability of the operator of the projects in which Artek has an interest in to
operate the field in a safe, efficient and effective manner; the ability of
Artek to obtain financing on acceptable terms; field production rates and
decline rates; the ability to replace and expand oil and natural gas reserves
through acquisition, development and exploration; the timing and cost of
pipeline, storage and facility construction and expansion and the ability of
Artek to secure adequate product transportation; future commodity prices;
currency, exchange and interest rates; regulatory framework regarding royalties,
taxes and environmental matters in the jurisdictions in which Artek operates;
and the ability of Artek to successfully market its oil and natural gas
products.
The forward-looking information and statements included in this news release are
not guarantees of future performance and should not be unduly relied upon. Such
information and statement, including the assumptions made in respect thereof,
involve known and unknown risks, uncertainties and other factors that may cause
actual results or events to defer materially from those anticipated in such
forward-looking information or statements including, without limitation: changes
in commodity prices; changes in the demand for or supply of Artek's products;
unanticipated operating results or production declines; changes in tax or
environmental laws, royalty rates or other regulatory matters; changes in
development plans of Artek or by third party operators of Artek's properties,
increased debt levels or debt service requirements; inaccurate estimation of
Artek's oil and gas reserve and resource volumes; limited, unfavourable or a
lack of access to capital markets; increased costs; a lack of adequate insurance
coverage; the impact of competitors; and certain other risks detailed from
time-to-time in Artek's public disclosure documents, (including, without
limitation, those risks identified in this news release and Artek's Annual
Information Form).
The forward-looking information and statements contained in this news release
speak only as of the date of this news release, and Artek does not assume any
obligation to publicly update or revise any of the included forward-looking
statements or information, whether as a result of new information, future events
or otherwise, except as may be required by applicable securities laws.
BOE Conversions: Barrel of oil equivalents or BOEs may be misleading,
particularly if used in isolation. A BOE conversion ratio has been calculated
using a conversion rate of six thousand cubic feet of natural gas to one barrel.
This conversion ratio of six thousand cubic feet of natural gas to one barrel is
based on an energy equivalent conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the wellhead. Given
that the value ratio based on the current price of crude oil as compared to
natural gas is significantly different from the energy equivalency of 6:1,
utilizing a conversion ratio on a 6:1 basis may be misleading as an indication
of value.
Test results and initial production rates: the pressure transient analysis or
well test interpretation has not been carried out and thus certain of the test
results provided herein should be considered to be preliminary until such
analysis or interpretation has been completed. Test results and initial
production rates disclosed herein may not necessarily be indicative of long-term
performance or of ultimate recovery.
Artek is a Calgary, Alberta based oil and gas exploration, development and
production company whose shares are traded on The Toronto Stock Exchange under
the trading symbol "RTK".
FOR FURTHER INFORMATION PLEASE CONTACT:
Artek Exploration Ltd.
Darryl Metcalfe
President and Chief Executive Officer
403.296.4799
Artek Exploration Ltd.
Darcy Anderson
Vice President, Finance and Chief Financial Officer
403.296.4775
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