CALGARY, June 5, 2019 /PRNewswire/ - Pulse Oil Corp. ("Pulse" or the "Company") (TSX-V: PUL and PUL.WT) is pleased to announce an operational update on successful production results from Pulse's two new wells drilled within the Company's Bigoray assets (Pulse: 100%) located in Central Alberta.
Pulse spudded two wells at its 100% controlled Bigoray site in Q1 of 2019 and is happy to report both wells were safely and successfully drilled and completed, with permanent production expected to start within a week at rates that exceeded management's earlier expectations. Initial testing operations at Pulse's two Bigoray wells are indicative of new, strong and stabilizing production rates from the Company's D and E Nisku Pools.
Importantly, Pulse's 15-4 D-Pool well perforated 5.5 meters of the oil pay encountered while drilling, located in the uppermost, and previously undrained part of the reef. Initial fluids recovered were 100% load and completion water, but within one day, oil cuts increased to over 90%. The well is presently swab testing more than 400 barrels of light oil (35 API) per day, exceeding management's forecasts. The 15-4 well will be placed on permanent production using an electric submersible pump (ESP) and the necessary infrastructure and production lines are in place at the wellsite to start production.
The second Bigoray well drilled by Pulse, the 5-9 well, was swab/ flow tested and produced approximately 70 barrels of fluid per day with similar increasing oil cuts during testing.
Over the long-term, the two new wells will be used as solvent injectors for Pulse's Bigoray enhanced oil recovery ("EOR") project. The 5-9 well will inject solvent into the Nisku E pool; 15-4 into the Nisku D pool. However as previously disclosed by Pulse, the wells have the added benefit of providing immediate new oil production and cash flow while Pulse completes the remaining facility phases to commission the EOR project.
Drew Cadenhead, Pulse President and COO, commented, "Again we are happy to report we have achieved our goals for these wells. The newly acquired 3-D seismic data has helped us intercept the Nisku pinnacle reef at the highest structural point in both pools; a significant achievement for Pulse's long-term plan for the EOR program. The interpretation of this new data has not only provided long-term optimal EOR injection positioning, it has also provided immediate new reserves, production, and significant cash flow."
The Company cautions that the short-term test rates disclosed in this news release are preliminary in nature and may not be indicative of stabilized on-stream production rates or of future product types. The test results are not necessarily indicative of long-term well or reservoir performance or of ultimate recovery. In addition, total fluid recovery rates during testing includes recovery of load fluids used in well completion stimulation operations. Actual results will differ from those realized during testing, and the difference may be material.
About Pulse Oil Corp.
Pulse is a debt-free, Canadian company incorporated under the Business Corporations Act (Alberta) that is focused on methodically, safely, yet aggressively making progress to increase production and reserves in the Queenstown and Bigoray acreages it holds 100% interests in. In addition, Pulse is advancing its Bigoray EOR program and new drilling efforts in Queenstown. Pulse owns 100% interests in the Bigoray area of Alberta, which includes two Nisku oil pinnacle reefs, as well as 100% interests in producing assets in the Queenstown area of southern Alberta. Pulse is moving forward to grow production and execute an EOR project to unlock significant value for shareholders through control of approximately 65 net sections of land across the Mannville, Cardium, Pekisko/Shunda, Nisku and Duvernay Shale trends in Western Canada. Pulse will also continue to focus on potentially acquiring affordable, small to medium sized proven oil and gas assets with significant upside. The Company plans to achieve further growth through low-risk, technically diligent drilling within its Queenstown assets, infrastructure ownership and reserve growth utilizing proven EOR techniques and implementation of technology.
Neither the TSX Venture Exchange, Inc. nor its Regulation Service Provider (as that term is defined under the policies of the TSX Venture Exchange) has neither approved nor disapproved of the contents of this press release.
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could", "potentially" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. Such statements include, without limitation, statements pertaining to the Bigoray operations currently underway, including reserves, production rates, cash flow, drilling plans and results, production testing, well completion, anticipated future production, and facilities related to the assets of Pulse Oil. In addition such statements also include without limitation, statements pertaining to the expected Bigoray EOR project, its planned development and the timing of the EOR project.
The forward-looking statements are based on management's current expectations and beliefs concerning future developments and their potential effect on the Company based on information currently available to management. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting Pulse will be those anticipated. Forward-looking information involves known and unknown risks, uncertainties, assumptions and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. Important factors that could cause actual results to differ materially from those in the forward looking statements include, but are not limited to: production results that deviate from management's current expectations; delays in the Company's completion activities and tie-in to infrastructure, including installation of an electric submersible pump; the volatility of commodity prices, product supply and demand, competition, access to and cost of capital, the assumptions underlying production forecast, the quality of technical data; environmental and weather risks, including the possible impacts of climate change, the ability to obtain environmental and other permits and the timing thereto, government regulation or action, the costs, timing and results of operations; the availability of equipment, services, resources and personnel required to complete the Company's planned operating activities; access to and availability of transportation, processing and refining facilities, acts of war or terrorism; and general economic conditions and other financial, operational and legal risks and uncertainties. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Barrels of oil equivalent (boe) is calculated using the conversion factor of 6 mcf (thousand cubic feet) of natural gas being equivalent to one barrel of oil. Boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl (barrel) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis.
SOURCE Pulse Oil Corp.