At Inga/Fireweed, the Company increased proved plus probable reserves by 145% to 15.4 million boe as compared to the previous year and value on a NPV10 BT basis increased 65% to $151.4 million. The Sproule Report assigned 24 undeveloped horizontal locations in Inga and three at Fireweed. Company mapping supports an additional 34 unbooked potential horizontal locations at Inga and Fireweed assuming a drilling density of approximately three wells per mapped section, although it is possible given the significant percentage of liquids (condensate) in the reservoir that the Inga property will require a higher drilling density to increase the recoverable reserves net to the Company. Furthermore the Sproule Report assigned only one undeveloped location for the Montney formation. In addition, the Company continues to add to its land holdings investing approximately $6.3 million in 2012 to acquire an additional 34,958 gross (20,338 net) acres of exploratory lands in the area that it believes are prospective. Artek now holds over 70 sections (41 net) and 80 sections (48 net) of Doig and Montney mineral rights respectively in the Inga/Fireweed area.
The Company has begun its 2013 Inga horizontal well program that will see it drill up to 10 gross (6.1 net) wells targeting condensate and oil with associated natural gas. Six (3.6 net) of the ten wells planned will focus on Artek's condensate rich Doig play. Up to 4 (2.5 net) horizontal wells are considered to be exploratory, targeting new Doig pools and the Montney formation which the Company believes is liquids rich. Depending on weather, Artek anticipates that it will have 2 to 3 Doig and up to 2 Montney horizontal wells or a total of 4 to 5 wells drilled prior to spring break-up in the Inga area. The Company's first two Inga wells are at various stages of the completion operations and the third has reached total depth with a fourth well expected to spud imminently.
At the Company's producing oil property at Leduc Woodbend, the Sproule Report assigned proved plus probable reserves of approximately 1.5 million boe and a NPV10 BT value of approximately $44.7 million after the disposition of approximately 0.7 million boe for $19.4 million early in 2012. Artek has drilled three (1.2 net) vertical development wells targeting Glauconitic oil during the first quarter of the year and they are at various stages of completion. Artek assumed operatorship of the property on December 1, 2012.
In the Peace River Arch (PRA) area, the Sproule Report assigned proved plus probable reserves of 1.1 million boe with a NPV10 BT value of approximately $8.2 million. A 100% W.I. exploration horizontal well targeting shallow Triassic oil is planned at Mulligan in the PRA area of Alberta. Artek has over 55 sections of land in what it maps as the oil prone window for the Triassic.
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 $52.4 million.
For 2013, Artek is planning capital expenditures of $55 to $58 million based upon the drilling of approximately 14 to 15 gross (8 to 9 net) wells. The capital program will be weighted 100% to projects targeting oil and condensate with associated natural gas.
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, 2012 (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.
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