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.