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Tuesday, 01/24/2012 2:48:32 PM

Tuesday, January 24, 2012 2:48:32 PM

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Artek Exploration Ltd. Announces 2012 Capital Program and Continued Liquids Focus
CALGARY, ALBERTA--(Marketwire - Jan. 23, 2012) - Artek Exploration Ltd. ("Artek" or the "Company") (TSX:RTK) Artek exited 2011 at a record production level based on field estimates of 3,436 boe/d (45% oil and natural gas liquids). After giving effect to the divestiture of 218 boe/d earlier this month, the Company was producing 3,218 boe/d (40% oil and natural gas liquids) which was still in excess of its 2011 exit guidance. On the back of this success, Artek is pleased to announce its 2012 capital expenditure budget of $45 to $49 million which contemplates the drilling of approximately 14 to 15 gross (9 to 10 net) wells. The capital program will be weighted 100% to projects targeting oil and condensate, with associated natural gas. The program includes approximately 7 gross (4.2 net) horizontal wells targeting condensate in the Doig at Inga and Fireweed where its first five horizontal wells tested at an average rate of over 2,000 boe/d (approximately 60% condensate), up to 4 gross (4.0 net) horizontal wells targeting crude oil in the Triassic of the Peace River Arch area and 3 to 4 gross (1.2 to 1.6 net) vertical wells on Artek's Glauconite crude oil property at Leduc Woodbend. The program reflects approximately 90% operational capital investment and 10% for land and seismic.

Assuming the full capital program is carried out as presently contemplated, Artek forecasts to exit the year producing approximately 4,000 to 4,200 boe/d with a 2012 average of approximately 3,400 to 3,500 boe/d, of which approximately 40% is forecast to comprise crude oil and natural gas liquids. After the divestiture of 218 boe/d, this would represent approximately 45% growth on a year over year average production basis based on the Company's internal estimates for 2011. Based upon the planned program, assuming 2012 commodity prices of $3.00/GJ AECO for natural gas and $90 to $95/bbl WTI (US$) for crude oil, the Company forecasts to generate approximately $31 to $32 million of cash flow ($0.71 to $0.74 per basic share) and exit the year with a debt to cash flow ratio of approximately 1.2 times. Management will continue to monitor commodity prices and will consider restricting production from dry natural gas wells that are not contributing significantly to cash flow.

The Company maintains financial flexibility and a strong balance sheet with a $60 million operating line of credit plus a $10 million development line as compared to Artek's current estimate of net debt of $28 to $30 million. The Company's estimated run-rate Debt to Cash Flow ratio is approximately 1.1 to 1.2 times at current commodity prices so capital investment can be expanded as opportunities present themselves or commodity prices allow during the 2012 year.

It's all happened before and it will all happen again. Might as well profit from it.

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