A Calgary-based junior oil and gas exploration and production company continues to expand its operations. Since its establishment in 2005, Artek Exploration’s production has grown from zero to more than 3,000 barrels of oil equivalent per day. Its reserves have also grown during that time from zero to 22.9 million barrels.
Artek is focused on finding and producing natural gas liquids, natural gas and oil projects in the Peace River Arch and Deep Basin areas of Alberta and British Columbia. The company also is producing a light crude oil project in central Alberta.
The company transitioned from private ownership to being publically traded on the Toronto Stock Exchange following its reverse takeover of COSTA Energy Inc. in 2010. “Artek’s primary objective is to continue using its strong technical expertise in its core areas to achieve profitable per share growth in reserves, production and cash flow, complemented with opportunistic acquisitions that have drilling upside and where the company has a competitive advantage,” it says.
Artek’s geological and geophysical knowledge, as well as its operations, reservoir and production engineering expertise, help it remain competitive in its core operating areas. “We utilize the appropriate geosciences and engineering technology, combined with the multi-zone nature of our focus areas, to mitigate risk inherent in its drill bit growth strategy,” the company says.
Artek Exploration’s core operating areas are:
- The Beaton, Dunvegan and Pouce Coupe exploration areas in Peace River Arch in Alberta, where it has an average production of 400 to 500 barrels a day on 46,000 net acres of land;
- The Noel/Tupper, Elmworth and Sinclair exploration areas in British Columbia’ Deep Basin, where Artek produces an average 700 to 800 barrels a day on 47,000 net acres;
- The Inga and Fireweed exploration areas in British Columbia, which combine for a production of 500 to 550 barrels a day on 12,000 net acres; and
- The Leduc Woodbend exploration area in Central Alberta, for which Artek produces an average of 550 to 570 barrels a day of light crude oil and liquids.
>b>The Way to Growth
Artek’s exploration and development growth strategy consists of several different components, according to the company.
Key elements include:
- Maximizing its capital toward “drilling, completion, equipping and tie-in operations supplemented by strategic acquisitions where the company has a technical competitive advantage.”;
- Investing in a mix of conventional and resource natural gas plays with crude oil and natural gas liquids potential;
- Focusing on plays with medium depth (between 1,200 to 3,500 meters) and moderate risk, with no more than 25 percent of work going toward exploratory, high risk and high impact play types;
- Targeting a less mature portion of the Peace River Arch and Deep Basin regions featuring targets from the mid-Cretaceous to Mississippian and Devonian formations;
- Generating land positions and prospects through Crown sales and multi-well, farm-in opportunities, as well as teaming with reputable industry partners; and
- Maximizing its working interests through maintaining operatorship and investing in areas with competitive infrastructure. The company says this should allow it to better control costs.