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CALGARY, ALBERTA -- (Marketwire) -- 03/11/13 -- Artisan Energy Corporation ("Artisan" or the "Corporation") (TSX VENTURE: AEC) is pleased to provide the following operations and corporate update.
HIGHLIGHTS
-- 100% drilling success on first three wells.-- Expanded key lands with 1,280 acre purchase at March 6, 2013 Tomahawk Area, Alberta Crown land sale.-- Drilling has de-risked and proved development oil projects at Ferrybank and Chip Lake with more than 20 future horizontal drilling locations between the two properties.-- Increased production from approximately 30 boe/d to 105 boe/d (approximately 86% light oil), with another 230 boe/d pending solution gas pipeline tie-in.-- Commencing drilling of two additional horizontal oil wells at Ferrybank.
OPERATIONS
Artisan now has a 100% working interest in 22,960 net acres in two core areas in Central and SE Alberta, with an inventory of 70 development-focused drilling locations. Artisan also has varied working interests in an additional 25,316 gross acres (15,691 net acres) of prospective properties in Alberta. Artisan's current on-stream oil and gas production is approximately 105 boe/d, consisting of approximately 86% light oil. Artisan has an additional 88 bbl/d and 850 MMcf/d, for a combined 230 boe/d of production awaiting tie-in.
Artisan's key properties include three development oil projects at Chip Lake and Ferrybank in Central Alberta and Conrad in SE Alberta, as well as a liquids rich gas project with prospective oil opportunities at Tomahawk / Bigoray in Central Alberta.
Chip Lake
Artisan has successfully completed and production tested its initial horizontal rock creek oil well at Chip Lake. However, due to regulatory requirements to conserve natural gas at this location, Artisan was required to flow the well at restricted rates and capture and truck natural gas to obtain sufficient production test data. Artisan flowed the 9-33-53-10W5 horizontal Chip Lake well for two weeks of continuous testing which concluded with an extended and stable rate of 50 bbl/d of clean oil plus 750 MMcf/d of associated natural gas at a surface flowing pressure of 350 psig. Based on this less than 50% drawdown test rate, Artisan expects to start the well on a pumping basis at sales of 88 bbls/d (including NGL's) and 850 MMcf/d (230 boe/d) or more. We expect this rate to be restricted initially because of short term limited capacity for the raw solution gas of 1,000 MMcf/day. Although initial productive test rates may not be indicative of long-term performance and ultimate reserve recovery, Artisan is comfortable that it has obtained sufficient data to determine that the initial Chip Lake well will produce oil and gas commercially at or in excess of the suggested rates.
The well is currently shut-in awaiting regulatory approval and construction of a 3km tie-in pipeline. Artisan expects to complete acquisition of the right of way by mid to late March and construction of the pipeline in May. Once the pipeline is constructed Artisan will be in a position to drill an additional horizontal well from its existing pad and five additional horizontal wells from a nearby approved multi-well pad. Future wells will target areas of the pool that are expected to produce at lower gas/oil ratios. Artisan expects to drill up to six rock creek oil wells and construct a multi-well oil battery at Chip Lake in 2013.
