Artek Explorations Ltd. (fka ARKXF)

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ARTEK EXPLORATION LTD. ANNOUNCES STRATEGIC ASSET DIVESTITURE AND OPERATIONS UPDATE

January 4, 2012

CALGARY, ALBERTA – (Marketwire – January 4, 2012) - Artek Exploration Ltd. ("Artek" or the "Company") (TSX - RTK) is pleased to announce the divesture of a portion (1/3) of its non-operated oil and gas assets in the Leduc Woodbend area for gross cash consideration of $19.5 million to a private Alberta corporation. The effective date of the disposition is January 1, 2012.
The key attributes of the partial asset disposition are as follows:

• Production of approximately 218 boe/d (94% crude oil and liquids); • Reserves associated with the assets disposed of based on Artek’s independent reserves
evaluation prepared by Sproule and Associates Limited effective as at December 31, 2010 (the "Sproule Report") were 409 Mboe on a Total Proved basis and 634 Mboe on a Total Proved plus Probable basis (95% crude oil and liquids);
• Based on the Sproule Report, the net present value of disposed reserves discounted at 10%, before tax, on a Total Proved basis was $15.3 million and on a Total Proved plus Probable basis was $19.1 million.

In the short term, the proceeds will be used to reduce current bank debt and will significantly improve Artek’s balance sheet. Artek estimates its net debt on the closing date of the transaction to be approximately $28 million. After giving effect to the disposition, the Company’s operating credit facility has been maintained by its lenders at $60 million because of anticipated 2011 year-end reserves growth. Subsequent to the divestiture, Artek will be producing approximately 440 boe/d (94% crude oil and liquids) in the Leduc Woodbend area. This disposition provides Artek with increased financial flexibility to pursue the Company’s inventory of crude oil and liquids rich drilling projects in its core operated areas at Inga B.C. and in the Peace River Arch.

At Inga, the Company determined post clean-up of its initial test that it had not completed all the stages in one of its fourth quarter, common-pad horizontal wells that in November had tested 1,815 boe/d (1,033 bbls of condensate per day). As a result, Artek re-entered the horizontal well and was able to substantially complete the remaining stages in the well using a similar hydrocarbon fracture stimulation program. Subsequent to the recompletion, after an 8 day inline test the well was flowing at a restricted rate of approximately 3,420 boe/d at 975 psi of which 22.5% was load hydrocarbons, 4.4 mmcf/d formation gas and approximately 1,800 bbl/d condensate net of load, ranking it the Company’s best result to date in the area. Although delayed by the necessity of the recompletion, both of the November horizontal wells were on production at year-end.
Artek exited the year at approximately 3,400-3,500 boe/d based on field estimates of which approximately 45% was oil and NGL’s. After giving effect to the asset sale the Company enters the new year at approximately 3,180-3,280 boe/d which is in excess of its previously announced 2011 exit guidance. Artek anticipates releasing 2012 capital expenditure and production guidance in the next several weeks.