Exploration & Production

Artisan Marks Progress at Tomahawk, Conrad Projects

Share Print Bookmark    |    Wednesday,January 15,2014

 Artisan Energy Corporation has reported the following updates to its farm-out of various exploration operations announced on December 30, 2013.

Wilrich Sandstone Gas Test at Tomahawk Property, Central Alberta

Artisan has completed a fracture stimulation and flow test of the Wilrich sandstone on its previously drilled vertical well at 1-20-52-7W5 and results have exceeded management's expectations. During 130 hours of clean-up of the fracture stimulation, flow from the Wilrich Test increased to a relatively stable rate of 30,500 cubic metres per day @ 1,325 kPag (1,080 mcf/d @ 192 psig).

The Wilrich Test results validate the mapping and interpretation of a substantial Wilrich sandstone gas pool which underlies the majority of Artisan's 12,160 gross acres (11,840 net acres) of land at its Tomahawk Property. In addition, this vertical well location represents a conservative proxy for the average reservoir thickness and quality in the identified Wilrich gas accumulation on Artisan's Tomahawk Property.

Based on the Wilrich Test results Artisan now believes that development of the Wilrich sandstone on its Tomahawk Property would be more economic than previously anticipated in the current low gas price environment. The Wilrich Test has resulted in new initial productivity expectations for a 1,400 metre Wilrich horizontal well on the Tomahawk Property of 3 to 5 MMcf/d with 50 to 100 barrels per day of natural gas liquids, and an anticipated well cost of approximately $2.5 million to drill, complete, equip and tie-in. Artisan's 100% owned lands at its Tomahawk Property support in excess of 30 development drill locations in the Wilrich sandstone.

The Wilrich Test was completed at no cost to Artisan. As previously announced, the Farmee has earned a 60% working interest in the applicable section of land (640 acres) on which the test was completed.

Test Well at Conrad Property, S.E. Alberta

Artisan has completed the drilling of a test well at 2-32-5-15W4 and is currently plugging the well back and sidetracking the wellbore for use as a future Sawtooth horizontal well. Artisan's management is very encouraged by the sand quality, thickness and oil shows encountered in the Sawtooth sandstone. Subject to funding Artisan intends to return to this wellbore in the next few months and drill the developmental 400m to 500m horizontal lateral in the Sawtooth. Artisan's 100% owned lands at its Conrad Property support in excess of 10 development drill locations in the Sawtooth sandstone.

The Conrad Test Well and evaluation of the zones of interest was completed at no cost to Artisan. As previously announced, the Farmee has earned a 60% working interest in the deep zone of interest on the applicable quarter section of land (160 acres) on which the Conrad Test Well was drilled.