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CALGARY, ALBERTA -- (Marketwire) -- 03/07/13 -- 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, 2012 (the "Sproule Report") as prepared by Sproule Associates Limited ("Sproule").
2012 HIGHLIGHTS
-- Increased Proved plus Probable reserves year over year by 30% to 29.6 million boe from 22.9 million boe or 34% after the sale of 0.7 million boe at Leduc Woodbend in January 2012, and Proved reserves increased by 33% to 17.1 million boe from 12.9 million boe.-- Increased Proved plus Probable Oil and NGLs reserves by 47% to 7.3 million boe from 5.0 million boe even after disposing of 0.7 million boe during the year. Oil and condensate comprise 65% of the oil and NGLs proved and probable reserves.-- Achieved all in finding, development and acquisition ("FD&A") costs of $10.96 per boe on Proved plus Probable reserves and $13.39 per boe on Proved reserves including future development costs ("FDC"). Finding and development ("F&D") costs including FDC but excluding acquisitions and dispositions were $12.37 per boe on a Proved plus Probable basis and $15.84 per boe on a Proved basis.-- Achieved a recycle ratio of 2.3 times based on Proved and Probable FD&A of $10.96 per boe and Artek's estimated fourth quarter 2012 operating netback of $25.47 per boe.-- Increased Proved plus Probable reserve value year over year by 17% to $257.4 million from $219.8 million using a 10% discount factor before tax, despite a decrease of 7% in Sproule's forecast oil pricing in the near three year period. The Proved plus probable reserve value increase is 28% when compared to the December 31, 2011 proved plus probable reserve value after the January 2012 Leduc Woodbend sale of 0.7 million boe.-- Replaced 2012 production of 1,013 mboe by 8.4 times with Proved plus Probable reserve additions and 5.6 times with Proved reserve additions.-- Specifically at Inga and Fireweed, proved plus probable reserves increased by 145% to 15.4 million boe as compared to the previous year and proved plus probable reserve value also increased 65% to $151.4 million using a 10% discount factor before tax.-- Estimated capital expenditures for the year ended December 31, 2012 were approximately $59.9 million, including approximately $6.7 million on undeveloped land acquisitions for new exploration plays in the Inga and Peace River Arch areas. Including a $19.4 million disposition of 218 boe/d at Leduc Woodbend, the Company's estimated net expenditures for the year were $40.5 million.-- Net asset value at December 31, 2012 increased to an estimated $251.0 million or $4.51 per diluted share.The following are reserves and operational highlights, details of which are provided later in the press release.
Gross Reserves at December 31 2012 2011 % change--------------------------------------------------------------------------------------------------------------------------------------------------------Proved Developed Producing (mboe) 4,321 3,816 13Proved Reserves (mboe) 17,053 12,853 33Proved Plus Probable Reserves (mboe) 29,639 22,881 30--------------------------------------------------------------------------------------------------------------------------------------------------------Proved FD&A including change in FDC ($/boe) (1) (2) 13.39 18.14 (26)Proved Plus Probable FD&A including change in FDC ($/boe) (1) (2) 10.96 16.83 (35)Proved FD&A excluding change in FDC ($/boe) (1) (2) 7.77 10.04 (23)Proved Plus Probable FD&A excluding change in FDC ($/boe) (1) (2) 5.21 8.55 (39)--------------------------------------------------------------------------------------------------------------------------------------------------------Fourth quarter Operating Netback ($/boe) (1) 25.47 30.24 (16)Proved Plus Probable Recycle Ratio (1) 2.3 1.8 28----------------------------------------------------------------------------2012 Wells Drilled Gross Net % Total----------------------------------------------------------------------------Crude Oil 6 3.6 46Natural gas 7 4.2 54----------------------------------------------------------------------------Total 13 7.8 100----------------------------------------------------------------------------(1) Certain financial and operating information included in this press release for the quarter and year ended December 31, 2012, 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, 2012 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, 2012 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.
