|By Marketwired .||
|February 6, 2013 04:30 PM EST||
CALGARY, ALBERTA -- (Marketwire) -- 02/06/13 -- Artek Exploration Ltd. ("Artek" or the "Company") (TSX:RTK) - Artek exited 2012 at a record production level of over 4,000 boe/d (approximately 44% oil and natural gas liquids). On the back of this success, Artek is pleased to announce its 2013 capital expenditure budget of $55 to $58 million which contemplates the drilling of approximately 14 to 15 gross (8 to 9 net) wells. The currently planned capital program will be weighted 100% to projects targeting oil and condensate with associated natural gas which deliver the best returns and upside, including up to 10 gross (6.1 net) horizontal wells in the condensate rich Inga/Fireweed area, 3 to 4 gross (1.2 to 1.6 net) vertical wells in the Leduc Woodbend area and 1 gross (1.0 net) horizontal well in the Peace River Arch area of Alberta.
After a production focused year driven by the validation of the Company's Inga Doig play and a development program at Leduc Woodbend, Artek plans to allocate up to 30% of its planned capital investment on exploration projects and the potential value upside they represent. The Company will monitor commodity prices closely, and has the ability to react to any significant changes in market conditions throughout the year. Assuming the capital program is carried out in its entirety, 2013 average production is forecast to be approximately 4,000 boe/d, of which approximately 43% to 44% is forecast to comprise crude oil and natural gas liquids. This would represent more than 40% growth over Artek's 2012 estimated average production. Exit production is forecast to be approximately 4,300 to 4,400 boe/d. Assuming 2013 commodity prices of $3.00 per GJ AECO for natural gas and $95.00 bbl WTI (US$) for crude oil, the Company forecasts 2013 annual cash flow of approximately $34 to $36 million.
The Inga/Fireweed program, representing over 85% of total capital investment, targets a balance of development, pool extension, exploration drilling and strategic facility and land investment. Six (3.6 net) of the ten wells planned will focus on Artek's Inga condensate rich Doig play where first month gross production rates from its first 10 horizontal wells have averaged approximately 1,200 boe/d (52% natural gas liquids). Artek continues to add to its land position in the area and now has over 18,500 Ha (10,800 net) or over 70 gross sections with Doig mineral rights on which the Company estimates there are 58 Doig horizontal locations (35 net) based on its mapping. Up to 4 gross (2.5 net) horizontal wells are considered to be exploratory, targeting new Doig pools and the Montney formation which the Company believes to have the potential to be liquids rich. In addition, Artek has accumulated over 21,300 Ha (12,900 net) or approximately 80 sections of land with Montney mineral rights in and around its operated facility and pipeline network in the greater Inga/Fireweed area. The capital program also includes approximately $3 million in facility investment that should increase Artek's capacity from 18 mmcf/d to approximately 28 mmcf/d and also $3.5 to $4 million for land and seismic. The Company's strategic holdings and infrastructure tie-in to the Spectra mainline and plant and another third party processing facility with medium and deeper cut liquids extraction capabilities, in addition to straddling the Alliance pipeline system and the Alaska highway. All of the above give Artek multiple transportation and processing options and optimal flexibility in pursuing greater liquids extraction alternatives and anticipated operating netback improvements.
In the Leduc Woodbend area of Alberta, the Company produces medium-light crude from a Glauconitic sandstone oil pool under waterflood with average annual declines of approximately 9% over the last 3 years. The Company secured operatorship of the property in 2012 and drilled 4 gross (1.6 net) infill wells that increased net production to record levels from 380 boe/d to over 650 boe/d late in the year after selling 219 boe/d of production from the property early in 2012 for approximately $19.5 million. Payout on the 2012 program is anticipated to be approximately 3 to 4 months. Three to four (1.2 to 1.6 net) additional vertical development wells and increased water injection are planned for 2013.
A 100% W.I. exploration horizontal well targeting shallow Triassic oil is also planned for 2013 at Mulligan in the Peace River Arch area of Alberta. The Company has over 55 net sections of land in the oil window for the Triassic and has current net production of approximately 350 to 400 boe/d (24% liquids).
To help offset commodity price risk, the Company has acquired a floor of $3.00/GJ for natural gas prices through put options on 6,000 GJ/D (April to October) by selling call options on 600 bpd of crude oil production for the same time period at an average call price of $101.37 CDN WTI per bbl. Artek maintains financial flexibility and a strong balance sheet with a $65 million operating line of credit plus a $10 million development line for total lines of $75 million as compared to Artek's 2012 estimated exit net debt of $50 million.
The Company currently has three rigs running. Two rigs are drilling in the Inga area where the Company expects to have drilled four horizontal wells including three Doig wells and one Montney exploration well prior to breakup. The first exploration horizontal well at Inga has reached total depth and the second horizontal well is near total depth. Both of these wells are anticipated to be completed in mid to late February. The third rig is drilling the first of three planned vertical wells targeting Glauconitic oil in the Leduc Woodbend area during the first quarter.
Artek's forecast and guidance are best estimates based on certain assumptions including operating results and commodity prices and will regularly be monitored by management and the Board. The Company's aim is to proactively manage our capital program in concert with operational results and fluctuating commodity prices with a goal to maintain financial flexibility and achieve growth targets.
Forward Looking Statements: This press release contains forward-looking statements. Management's assessment of future plans and operations and the timing thereof, future results from operations, production estimates including 2013 average and exit production, commodity mix, initial production rates, estimated payout of wells, the Company's 2013 capital expenditure plans including the number and locations of wells to be drilled, productive capacity of new wells, including the potential of the Company's Montney rights, financial capacity to carry out its planned 2013 capital program, commodity price forecasts and the Company's estimated net debt and 2013 cash flow may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, the inability to fully realize the benefits of the acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, the Company's actual results may differ materially from those expressed in, or implied by, the forward looking statements. Forward looking statements or information are based on a number of factors and assumptions 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 the Company can give no assurance that such expectations will prove to be correct.
In addition to other factors and assumptions which may be identified in this document and other documents filed by the Company, assumptions have been made regarding, among other things: the impact of increasing competition; the general stability of the economic and political environment in which Artek operates; the ability of the Company to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects which the Company has an interest in to operate the field in a safe, efficient and effective manner; Artek's ability 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 or exploration; the timing and costs of pipeline, storage and facility construction and expansion; the ability of the Company to secure adequate product transportation; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which the Company operates; and Artek's ability to successfully market its oil and natural gas products. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the Company's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) or at the Company's website (www.artekexploration.com). Furthermore, the forward looking statements contained in this document are made as at the date of this document and the Company does not undertake any obligation to update publicly or to revise any of the included forward looking statements, 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 equivalent ("BOE") amounts 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.
Artek is a crude oil and natural gas exploration, development and production company headquartered in Calgary, Alberta, Canada. Artek's shares trade on the Toronto Stock Exchange under the symbol "RTK".
Artek Exploration Ltd.
President and Chief Executive Officer
Artek Exploration Ltd.
Vice President Finance and Chief Financial Officer
Wearable technology was dominant at this year’s International Consumer Electronics Show (CES) , and MWC was no exception to this trend. New versions of favorites, such as the Samsung Gear (three new products were released: the Gear 2, the Gear 2 Neo and the Gear Fit), shared the limelight with new wearables like Pebble Time Steel (the new premium version of the company’s previously released smartwatch) and the LG Watch Urbane. The most dramatic difference at MWC was an emphasis on presenting wearables as fashion accessories and moving away from the original clunky technology associated with t...
Mar. 31, 2015 10:00 PM EDT Reads: 1,594
SYS-CON Events announced today that robomq.io will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. robomq.io is an interoperable and composable platform that connects any device to any application. It helps systems integrators and the solution providers build new and innovative products and service for industries requiring monitoring or intelligence from devices and sensors.
Mar. 31, 2015 06:00 PM EDT Reads: 1,602
Internet of Things (IoT) will be a hybrid ecosystem of diverse devices and sensors collaborating with operational and enterprise systems to create the next big application. In their session at @ThingsExpo, Bramh Gupta, founder and CEO of robomq.io, and Fred Yatzeck, principal architect leading product development at robomq.io, will discuss how choosing the right middleware and integration strategy from the get-go will enable IoT solution developers to adapt and grow with the industry, while at the same time reduce Time to Market (TTM) by using plug and play capabilities offered by a robust I...
Mar. 31, 2015 04:00 PM EDT Reads: 606
After making a doctor’s appointment via your mobile device, you receive a calendar invite. The day of your appointment, you get a reminder with the doctor’s location and contact information. As you enter the doctor’s exam room, the medical team is equipped with the latest tablet containing your medical history – he or she makes real time updates to your medical file. At the end of your visit, you receive an electronic prescription to your preferred pharmacy and can schedule your next appointment.
Mar. 31, 2015 03:45 PM EDT Reads: 1,019
SYS-CON Events announced today that Solgenia will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Solgenia is the global market leader in Cloud Collaboration and Cloud Infrastructure software solutions. Designed to “Bridge the Gap” between Personal and Professional Social, Mobile and Cloud user experiences, our solutions help large and medium-sized organizations dr...
Mar. 31, 2015 03:00 PM EDT Reads: 3,041
While not quite mainstream yet, WebRTC is starting to gain ground with Carriers, Enterprises and Independent Software Vendors (ISV’s) alike. WebRTC makes it easy for developers to add audio and video communications into their applications by using Web browsers as their platform. But like any market, every customer engagement has unique requirements, as well as constraints. And of course, one size does not fit all. In her session at WebRTC Summit, Dr. Natasha Tamaskar, Vice President, Head of Cloud and Mobile Strategy at GENBAND, will explore what is needed to take a real time communications ...
Mar. 31, 2015 02:39 PM EDT Reads: 538
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on Twitter at @MicroservicesE
Mar. 31, 2015 12:00 PM EDT Reads: 1,572
SYS-CON Events announced today that Litmus Automation will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Litmus Automation’s vision is to provide a solution for companies that are in a rush to embrace the disruptive Internet of Things technology and leverage it for real business challenges. Litmus Automation simplifies the complexity of connected devices applications with Loop, a secure and scalable cloud platform.
Mar. 31, 2015 12:00 PM EDT Reads: 654
SYS-CON Events announced today the IoT Bootcamp – Jumpstart Your IoT Strategy, being held June 9–10, 2015, in conjunction with 16th Cloud Expo and Internet of @ThingsExpo at the Javits Center in New York City. This is your chance to jumpstart your IoT strategy. Combined with real-world scenarios and use cases, the IoT Bootcamp is not just based on presentations but includes hands-on demos and walkthroughs. We will introduce you to a variety of Do-It-Yourself IoT platforms including Arduino, Raspberry Pi, BeagleBone, Spark and Intel Edison. You will also get an overview of cloud technologies s...
Mar. 31, 2015 11:00 AM EDT Reads: 2,249
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch of Docker's initial release in March of 2013, interest was revved up several notches. Then late last...
Mar. 31, 2015 09:15 AM EDT Reads: 2,305
The WebRTC Summit 2015 New York, to be held June 9-11, 2015, at the Javits Center in New York, NY, announces that its Call for Papers is open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 16th International Cloud Expo, @ThingsExpo, Big Data Expo, and DevOps Summit.
Mar. 31, 2015 09:00 AM EDT Reads: 1,729
SOA Software has changed its name to Akana. With roots in Web Services and SOA Governance, Akana has established itself as a leader in API Management and is expanding into cloud integration as an alternative to the traditional heavyweight enterprise service bus (ESB). The company recently announced that it achieved more than 90% year-over-year growth. As Akana, the company now addresses the evolution and diversification of SOA, unifying security, management, and DevOps across SOA, APIs, microservices, and more.
Mar. 31, 2015 08:30 AM EDT Reads: 2,115
The list of ‘new paradigm’ technologies that now surrounds us appears to be at an all time high. From cloud computing and Big Data analytics to Bring Your Own Device (BYOD) and the Internet of Things (IoT), today we have to deal with what the industry likes to call ‘paradigm shifts’ at every level of IT. This is disruption; of course, we understand that – change is almost always disruptive.
Mar. 30, 2015 04:00 PM EDT Reads: 1,199
SYS-CON Events announced today that SafeLogic has been named “Bag Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. SafeLogic provides security products for applications in mobile and server/appliance environments. SafeLogic’s flagship product CryptoComply is a FIPS 140-2 validated cryptographic engine designed to secure data on servers, workstations, appliances, mobile devices, and in the Cloud.
Mar. 30, 2015 11:00 AM EDT Reads: 1,557
GENBAND has announced that SageNet is leveraging the Nuvia platform to deliver Unified Communications as a Service (UCaaS) to its large base of retail and enterprise customers. Nuvia’s cloud-based solution provides SageNet’s customers with a full suite of business communications and collaboration tools. Two large national SageNet retail customers have recently signed up to deploy the Nuvia platform and the company will continue to sell the service to new and existing customers. Nuvia’s capabilities include HD voice, video, multimedia messaging, mobility, conferencing, Web collaboration, deskt...
Mar. 30, 2015 01:00 AM EDT Reads: 1,535
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
Mar. 29, 2015 10:00 PM EDT Reads: 1,883
SYS-CON Events announced today that Cisco, the worldwide leader in IT that transforms how people connect, communicate and collaborate, has been named “Gold Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Cisco makes amazing things happen by connecting the unconnected. Cisco has shaped the future of the Internet by becoming the worldwide leader in transforming how people connect, communicate and collaborate. Cisco and our partners are building the platform for the Internet of Everything by connecting the...
Mar. 29, 2015 07:00 PM EDT Reads: 5,292
Temasys has announced senior management additions to its team. Joining are David Holloway as Vice President of Commercial and Nadine Yap as Vice President of Product. Over the past 12 months Temasys has doubled in size as it adds new customers and expands the development of its Skylink platform. Skylink leads the charge to move WebRTC, traditionally seen as a desktop, browser based technology, to become a ubiquitous web communications technology on web and mobile, as well as Internet of Things compatible devices.
Mar. 29, 2015 06:00 PM EDT Reads: 1,897
Docker is an excellent platform for organizations interested in running microservices. It offers portability and consistency between development and production environments, quick provisioning times, and a simple way to isolate services. In his session at DevOps Summit at 16th Cloud Expo, Shannon Williams, co-founder of Rancher Labs, will walk through these and other benefits of using Docker to run microservices, and provide an overview of RancherOS, a minimalist distribution of Linux designed expressly to run Docker. He will also discuss Rancher, an orchestration and service discovery platf...
Mar. 29, 2015 04:15 PM EDT Reads: 2,478
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes for use cases across the industrial, enterprise, and consumer segments.
Mar. 29, 2015 03:30 PM EDT Reads: 2,239