Artek Exploration To Divest One-Third Of NonOp Alberta Leduc Woodbend Assets

To acquire assets in Leduc Woodbend area in Alberta, gaining 218 BOE/d, 409,000 proved.

Artek Exploration Ltd., Calgary, (Toronto: RTK) plans to one-third of its nonoperated oil and gas assets in the Leduc Woodbend area in Alberta to an undisclosed private Alberta company for C$19.5 million in cash.

The assets include production of approximately 218 barrels of oil equivalent per day (94% crude oil and liquids). Proved reserves as of year-end 2010 were 409,000 barrels equivalent and proved and probable reserves were 634,000.

Artek will use the proceeds to pay current bank debt and improve its balance sheet. Artek estimates its net debt on the closing date of the transaction to be approximately $28 million.

Subsequent to the divestiture, Artek will be producing approximately 440 barrels equivalent per day (94% crude oil and liquids) in the Leduc Woodbend area. This sale allows Artek to pursue its inventory of crude oil and liquids rich drilling projects in its core operated areas at Inga British Columbia and in the Peace River Arch in Alberta.

The sale has an effective date of Jan. 1.