operationson certain assets currently owned 100% by Artisan. The Farmee has committed to pay 100% of the cost of the following exploration operations (the “Farm-out Operations”):
- completion of the Wilrich Sandstone in Artisan’s previously drilled vertical well on its liquids rich gas property at Tomahawk in Central Alberta. The Farmee will earn a 60% working interest in the Wilrich zone on the applicable section of land. Artisan has 12,160 gross acres (11,840 net acres) of nearly contiguous land at Tomahawk, all of which is prospective for the Wilrich Sandstone; and
- drilling of a deep pool test well on Artisan’s Conrad property in Southern Alberta and fully evaluating a new oil play in the area by cutting core if sand is present and logging the deep zone of interest. In the event evaluation of the deep zone of interest is not successful, this wellbore will be available to Artisan for the development drilling of a shallower Sawtooth zone horizontal oil well. The Farmee will earn a 60% working interest in this deep zone of interest on the applicable quarter section of land.
Artisan has commenced the Farm-out Operations.
About Artisan
Artisan is an 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. 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.
Measurements
Reported production represents sales before the deduction of royalties. Where amounts are expressed on a barrel of oil equivalent (“boe”) basis, natural gas has been converted at a ratio of six thousand cubic feet to one boe. This ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Boe’s may be misleading, particularly if used in isolation.
Advisory
This news release contains forward-looking statements and information (“forward-looking statements”) within the meaning of applicable securities laws relating to the proposed acquisition of oil and gas assets in the Provost area, 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.