CALGARY, May 22, 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 Queenstown assets located in Southern Alberta.
Queenstown Results Exceed Expectations
As part of Pulse's light-oil drilling campaign these first two Queenstown wells targeted Pulse's newly defined 3-D seismic lithic sandstone channels, which are the highest quality reservoirs within the Mannville Channel play. These first two wells have initial combined test rates of over 1,350 boe/d, (79% total fluids), with oil cuts presently 48% oil and rising daily as total load fluid used in well completion stimulation operations is produced out of the wells.
Pulse's production team is continuing to monitor these two wells and the short-term production rates achieved to date, in order to optimize the wells for long-term production. These results to date have encouraged Pulse's management team to initiate plans for an additional, multi-well drilling program at Queenstown in coming months; details will be announced upon completion of well planning and board approval.
Bigoray Results Coming Shortly
Pulse is also happy to report that testing operations at Bigoray are proceeding. Both of these new oil wells, that will become injectors in the future for Pulse's enhanced oil recovery project at Bigoray, are expected to be placed on production shortly. At current, both wells have been perforated and swab testing is underway. Pulse expects to announce the results of the initial swab/flow testing program shortly.
Drew Cadenhead, Pulse President and COO, commented, "We are very excited about these production rates at Queenstown announced today. Not only will this strong new production increase cash flow immediately for Pulse, we are encouraged enough to initiate another, larger drilling campaign at Queenstown to add even more production and cash flow in the coming months. I would like to congratulate our operations team for their perseverance drilling in the heart of winter and continuing through spring break-up. Extreme cold followed immediately by flood conditions challenged our team, but we are proud to say all Queenstown operations were completed on budget and without a single HSE incident. At current rates, the combined production has exceeded management's expectations and Pulse is preparing a plan to continue its successful Queenstown drilling activity in coming months."
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 and Queenstown operations currently underway, including 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 and its planned development.
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 and drilling results that deviate from management's current expectations; delays in the Company's drilling activities and tie-in of infrastructure; 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 drilling 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.