Artek Exploration Ltd. announces third quarter 2012 financial results and updates operations
Thursday, Nov 08, 2012
Artek Exploration Ltd. (TSX:RTK) of Calgary, Alberta ("Artek" or the "Company") is pleased to provide this summary of its financial and operating results for the three and nine months ended September 30, 2012. A complete copy of the Company's comparative financial statements for the three and nine months ended September 30, 2012, along with management's discussion and analysis in respect thereof will be filed on SEDAR and on the Company's website at www.artekexploration.com.
For the third quarter of 2012, Artek's funds flow declined 42% to $3.1 million compared to the same period last year due to a 45% year-over-year drop in natural gas prices and a 6% decrease in crude oil prices. The Company continued to have approximately 200 boe/d of dry natural gas production shut-in throughout the period due to low natural gas prices. Despite these occurrences and the divestiture of 218 boe/d (approximately 94% oil and liquids) in the first quarter, the Company posted a 2% increase in average production to 2,556 boe/d. Artek's 37% oil and liquids weighting, after a first quarter asset sale, allowed the Company to achieve a quarterly operating netback of $18.52/boe and a cash netback of $13.21/boe despite lower commodity prices. Operating costs improved 9% to $10.11/boe for the quarter compared to the same period last year, while improving 7% over the first nine months of 2011.
The Company's working capital deficiency (excluding fair value of derivative instruments) was $61.4 million at September 30, 2012. Artek's operating bank line was increased to $65.0 million from $60.0 million during the quarter, while the Company's $10.0 million development/acquisition facility was maintained, bringing total credit lines to $75 million.
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