HIGHLIGHTS

Since starting a land fund in 2009, management has carefully crafted and assembled the assets and opportunities that comprise what is now Artisan Energy Corporation.
We are off to an excellent start with proving wells drilled and producing or tested at Chip Lake, Ferrybank and Tomahawk.   Company production peaked in July 2013 on a flush basis at 400 boe/day with our first 4 oil wells drilled at Chip Lake and Ferrybank.  Current production is more stable at approximately 135 boe/day as no new wells have been brought on since that time.   Now with a pending horizontal at Conrad Artisan is poised with a very attractive, low risk development oil well inventory in excess of 30 net locations.   Subject to funding, at these three oil projects there is a very high degree of certainty that we can build over 2000 boe per day which is our near term strategy.
The recent completion and gas test at Tomahawk 1-20-52-6W4  has validated Artisan’s very substantial (11,456 net acre) Wilrich gas project.  On the basis of this test mangagement is now expecting wells that will IP 3.0 to 5.0 MMcf/day rich gas that will yield between 50 to 100 barrels per day of condensate  with about 12% shrinkage.   Tomahawk is now a project that is viable and current gas prices and will be even more lucrative as gas prices improve in North America in the coming years.   Artisan’s medium term strategy is to increase its production to in excess of 10,000 boepd by developing Tomahawk on the heels of its initial oil focus.
 We are extremely pleased with the results of our first six wells and the prospects for near term rapid growth of the company’s oil production.

 

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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 future wells are planned with 1400m laterals and a 60 day IP expectation of 90 bopd plus 180 mcf/d solution gas.

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Oil Project #2:   Chip Lake – A Substantial Oil Pool

Artisan drilled the intitial Chip Lake horizontal in the fall of 2012 and then completed the construction of a 3 km solution gas pipeline in June 2013.   The well drilled as a vertical strat test before going horizontal penetrated in excess of 9 meters of Rock Creek sand pay.   The pay thickness and pressure data combined with data from other wells in the area establish that Artisan’s section 33 is essentially positioned in the oil leg of a very substantial Rock Creek pool.  The initial 250m horizontal well is situated high in the reservoir in one of the most up-dip locations on our lands and is consequently a lower rate high GOR well.   Future wells are planned as lower structure 600m horizontals and have an expected 60 day IP of 150 bopd plus 375 mcf/day of solution gas.

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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.   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 as development of the Ferguson pool approaches us.