|By Marketwired .||
|September 23, 2013 07:51 PM EDT||
CALGARY, ALBERTA -- (Marketwired) -- 09/23/13 -- Artisan Energy Corporation ("Artisan" or the "Corporation") (TSX VENTURE:AEC) is pleased to announce the following operational update and production forecast since its prior news release July 22, 2013, and a corporate update on its recent private placement (see press release dated August 6, 2013).
Operational Update and Updated Production Forecast
Artisan's Ferrybank Belly River horizontal oil wells located at 02/9-8-43-27W4 and 16-8-43-27W4 have exceeded the anticipated 60-day initial production expectation of 75 bopd by averaging 90 bopd plus solution gas during the first 60 days of production. Currently these two wells are producing 150 bopd plus 240 mcf/d for an average rate per well of 95 boepd. As a result of the higher 60-day initial oil production rates, revenue from the associated solution gas and oil prices above the internally forecasted oil price of $85.00 WTI, Artisan now anticipates that these wells will pay-out quicker than the internally forecasted 20-months.
Artisan's total production is currently 310 boepd (approx. 70% light oil and NGLs) following stabilization from initial production rates. Allowing for some additional decline of flush production rates, Artisan expects to exit October 2013 producing approximately 275 boepd from its currently producing wells (approx. 70% light oil and NGLs). Artisan has a combined 35 development drilling locations with its Ferrybank Belly River light oil and Chip Lake Rock Creek light oil projects now advanced to proven projects.
Closing of Private Placement
Artisan has now closed its previously announced private placement with the final closing of 275,000 common shares for proceeds of $110,000. Artisan issued a total of 5,400,000 common shares at a price of $0.40 per common share and 439,348 flow-through common shares at a price of $0.46 per flow- through share for total gross proceeds of $2,362,100 ($2,232,100 net proceeds after payment of applicable finder's fees). Proceeds will be used for general working capital purposes and drilling of the fourth horizontal Belly River oil well at Ferrybank.
Artisan is in ongoing discussions with various parties regarding additional financing in the form of equity and/or joint venture investments in order to allow accelerated advancement of its light oil focused development projects at Ferrybank (Belly River), Chip Lake (Rock Creek) and Conrad (Sawtooth), as well as continued testing of its light oil exploration projects in S.E. Alberta (Bakken) and Tomahawk (Nordegg).
Artisan is an emerging oil and gas producer that holds near a 100% working interest in 27,787 core acres of land in Central and S.E. Alberta. Artisan has development oil projects at Ferrybank and Chip Lake, Alberta, from which it is producing 310 boe/d (approx. 70% light oil and NGLs) from its first four horizontal wells. Ferrybank is targeting Belly River oil production and Chip Lake is targeting Rock Creek oil production. Artisan also has a Sawtooth development oil project in S.E. Alberta, a Wilrich gas and Nordegg oil exploration project in Central Alberta and is pursuing and testing Bakken oil potential on various lands in S.E. Alberta, having drilled an initial vertical test well to the east of the Ferguson oil pool.
This news release contains forward-looking statements and information ("forward-looking statements") within the meaning of applicable securities laws relating to estimates of additional oil and gas production, anticipated timing and results from operational activities, the timing and occurrence of capital expenditure and plans for further development. Readers are cautioned to not place undue reliance on forward-looking statements. While Artisan believes the expectations reflected in the forward- looking statements are reasonable, actual results and developments may differ materially from those contemplated by these statements depending on, among other things, issues encountered in drilling, completion and tie-in operations, the amount and timing of capital expenditures and factors beyond Artisan's control. The forward-looking information contained in this news release is made as at the date of this news release and Artisan does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. Readers are urged to consider these factors carefully in evaluating any forward-looking information.
Additional information on other factors that could affect Artisan's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.