On the move in BC Montney

Gary Park

For Petroleum News

Artek Exploration, a nimble-footed Canadian exploration and production junior, has posted some of the strongest initial results from its program in British Columbia’s liquids-rich Montney play.

A horizontal well that the company drilled and completed during the final quarter of 2014 yielded a controlled 1,147 barrels of oil equivalent per day (70 percent oil and condensate), rated as one of the best 30-day liquids rates from the Montney or any other formation in the province.

It is also a step forward from Artek’s initial well which averaged 903 boe per day (77 percent liquids) in its first 30 days, making the well among the leading two during the first three quarters in British Columbia.

Artek has a 59 percent working interest in almost 100,000 acres of Montney rights in the greater Inga/Firewood area, which is being developed with four to eight wells per section, making it the focus of the company’s program.

But its other play in the Doig formation has also generated positive results, with one of two horizontal wells flowing at 1,959 boe per day (73 percent oil and condensate) over its initial 30 days.

The latest Inga/Firewood well was completed with a 36-stage slickwater frack, while the Doig well was completed with a 22-stage slickwater frack.

The second Doig well, completed with a 29-stage slickwater frack, averaged a controlled 1,280 boe per day (77 percent oil and condensate).

To strengthen its prospects in Inga/Firewood, Artek - in partnership with Kelt Exploration - acquired 56,000 gross acres (with a 50 percent working interest) in December, including 2,275 acres of Montney rights, for C$10.6 million.

Artek’s stake includes 2.7 million cubic feet equivalent per day (67 percent gas) of production and proved plus probable reserves of 13.2 billion cubic feet equivalent (53 percent gas), plus four compression facilities, 170 miles of pipeline and an oil battery/terminal.

The company expected 2014 volumes to average 25.2 million cubic feet equivalent per day (39 percent liquids) and plans to release additional guidance for 2015 within a few weeks.

To help finance its operations, Artek sold non-core assets in the Peace River Arch area of northwestern Alberta, including production of 2.4 million cubic feet equivalent per day and proved plus probable reserves of 22.2 billion cubic feet equivalent as well as 22,690 net acres in Alberta.

Artek, which started as a private company 10 years ago, describes its primary objective as deploying “strong technical expertise” in its core areas, along with “opportunistic acquisitions” that have drilling upside and offer a competitive advantage.