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 110 boe/day as no new wells have been brought on since July 2013.  Now with a pending horizontal at Conrad, all four of Artisan’s initial projects will be de-risked and  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.
Combined with the significant successes that other operators are having with their Wilrich/Fahler projects, the completion and gas test at Tomahawk 1-20-52-6W4  has validated Artisan’s very substantial (11,840 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.   Management believes Tomahawk is a compelling project at current gas prices and will be even more lucrative as gas prices improve in North America in the coming years.   Artisan’s is now seeking financial and/or joint venture partners to develop this project to in excess of 10,000 boepd in the near term.
 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.

oil_drop_icon

Key Project #1:   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 the very substantial Rock Creek J 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.

oil_drop_icon

Key Project # 2:  Tomahawk – A Highly Economic 100 Bcf + Gas & Liquids Project

Several industry operators are having considerable success developing Wilrich gas on trend with Tomahawk.   This reality combined with Artisan’s successful vertical well test at 1-20 in January 2014 have substantiated and increased management’s expectation for average well performance at Tomahawk.   On a conservative basis management expects an average well with a 1400 meter horizontal section will yield a 60 day IP of 650 boe/day (3.5 MMcf/day of sales gas plus 70 barrels of propane plus liquids).   Based on an average anticipated well cost of $2.5 million, current liquid prices and an AECO gas price of $3.50 per mcf management expects these wells to payout in less than a year and provide a 240% NPV10 return on capital.