Post breakup, Artek is planning to drill up to an additional five horizontal wells at Inga/Fireweed, including potentially two exploratory or step-out wells targeting the Doig formation and another exploratory well targeting the Montney. In addition, an exploratory horizontal well is planned for early summer in the Mulligan area of the Peace River Arch targeting Charlie Lake oil and potentially another development well at Leduc Woodbend targeting Glauconitic oil. With the Company currently flowing back its latest pad wells at Inga on clean up, production is expected to be in the 3,900 to 4,000 boe/d range but restricted by the capacity of the Inga facility until the expansion is completed in June. The Company's previously announced 2013 program contemplates a capital budget of approximately $58 million with production averaging 4,000 boe/d for the year (43% to 44% liquids) and exit production at 4,300 to 4,400 boe/d. With the Company's operating line increase and first quarter financing, Artek has significant financial flexibility with a net debt to annualized first quarter funds flow ratio of 0.9. The Company will continue to assess the merits of increasing its 2013 capital investment, which may include an increase to its operational capital, given that Artek posted top tier capital efficiencies last year of $10.96/boe for FD&A costs on proved plus probable reserves and a recycle ratio of 2.3 times, or potential strategic transactions in our core areas or a combination thereof.
Forward Looking Statements: This document contains forward-looking statements. Management's assessment of future plans and operations, future results from operations, production estimates including forecast 2012 average and exit rates, commodity mix, initial production rates, drilling plans, the volumes and estimated value of reserves, timing of drilling and tie-in of wells, number of potential drilling locations, productive capacity of new wells, estimates of shut-in production and the timing thereof, future oil and natural gas prices, capital expenditures and the nature and timing of these expenditures, potential increase in 2013 program, cash flow estimates and financial capacity to carry out its planned 2013 capital program 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.
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