Artisan Energy Corporation is pleased to provide the following operations update.

HIGHLIGHTS

Current production exceeding 400 boe/d (70% oil and NGLs). Drilling success on two additional horizontal oil wells at Ferrybank. Completion of solution gas pipeline at Chip Lake and tie-in of initial horizontal well. Pooling of Banff/Bakken prospective acreage in Southern Alberta and drilling of vertical Banff/Bakken test well to complete earning. Ferrybank

Artisan's two additional 1,000m horizontal length Belly River oil wells are each producing in excess of 100 bbl/d of oil and are expected to exceed the Corporation's 60 day initial production expectation of approximately 75 bbl/d of oil per well. The two wells were initially brought on production in the middle of June, but required clean-out work-overs to drill out the balls that did not properly dissolve in the brine frac fluid after the fracture stimulation process. The work-over operations were successfully completed in July. Artisan currently has three horizontal oil wells producing from the Ferrybank pool and has plans to construct an 800m pipeline to capture the associated gas production, which represents an additional 50 boe/d. Artisan has up to an additional eight horizontal oil drilling locations for future considerations on its existing Ferrybank lands.

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