Oil Project #1: Ferrybank – 3 Horizontals Producing
Artisan has now drilled, completed, equipped and put into production three horizontal multi-frac oil wells at the Ferrybank property. The first was in production in August 2012 and the next two came on in June of 2013. The first well had a 750m lateral and received ten 15 tonne fracs. The recent two horizontals were 1000m laterals and each was completed with fourteen 15 tonne fracs. It is now apparent that the longer laterals have greater productivity and that all three horizontals will have exceeded our 60 day initial productivity expectation of 75 bopd.
Oil Project #2: Chip Lake – Now Onstream
Artisan completed the construction of a 3 km solution gas pipeline in June 2013 and immediately put the initial Chip Lake well into production. This initial 250m horizontal well is situated high in the reservoir in one of the most up-dip locations on our lands. Consequently, the well is producing at a higher GOR than we expect from future wells. Currently flowing at a restricted rate due to a short term compression capacity limitation, the well is making approximately 30 bopd and 750 mcf/day raw gas. Over time as we resolve the compression restriction and pull the well harder and turn it into a pumping well, we expect to oil rate to rise and the GOR to reduce. From existing well pads Artisan has 6 additional drill ready locations that are planned for 350m horizontal laterals.
Oil Project # 3: Southern Alberta
In the Conrad and Weston areas of southern Alberta Artisan is pursuing Sawtooth oil potential at a depth of approximately 900m and Banff oil potential at a depth of approximately 1200m. At Conrad the Sawtooth is an existing pool where Artisan has 10 locations (average initial productivity expectation of 60 bopd).
Artisan’s recent Weston 4-3-4-15W4 well tested the newly emerging southern Alberta Bakken (Banff) potential on trend with DeeThree’s 2011 discovery of the prolific Ferguson pool. In the process, Artisan pooled it’s two sections in Weston with five sections of a third party and earned an 80% working interest in all seven sections. This is an exciting project with a higher degree of risk and higher cost but with commensurate 60 day initial productivity exceeding 300 bopd. Artisan’s plans for developing and pursuing this opportunity are evolving and we will provide more detail in the coming months.