Artisan has signed a purchase and sale agreement (subject to certain closing conditions) with Magnum Energy Inc. ("Magnum") (TSX VENTURE:MEN), to acquire Magnum's 50% working interest in 2,720 gross acres (1,360 net acres) of land in the Provost area of Alberta (the "Provost Asset"), which Magnum currently operates. Current production from the Provost Asset is approximately 80 gross boe/d (approximately 40 net boe/d) comprised of 90% light oil producing from the Viking zone. Artisan estimates that the Provost Asset has an additional 17 gross (8.5 net) horizontal development Viking light oil drill locations based on a minimum well density of 4 additional horizontal wells per section. In addition, Artisan recognizes potential to conduct low-cost optimization operations on the existing producing wells and facilities on the Provost Asset to materially increase production.
