CALGARY, Jan. 30, 2019 /CNW/ - Pulse Oil Corp.
("Pulse" or the "Company") (TSX-V: PUL and PUL.WT) is pleased
to provide the following operational update, including information
on new well drilling results from the Company's Queenstown property as well as a re-activation
/ EOR implementation update from Pulse's Bigoray property.
Queenstown: As reported
Dec 18th, 2018 and
Jan 2nd, 2019, Pulse
recently completed the drilling and fracture stimulation of the
Company's first two new wells. The wells targeted newly defined 3-D
seismic lithic sandstone channels, which are the highest quality
reservoirs within the Mannville Channel play of Southern Alberta. The two wells drilled
1200m and 1276m of horizontal lithic channel play and were
fracked with 15 and 18 stages, respectively. All fracks were placed
successfully and flowback of frack fluid and hydrocarbons were
initiated immediately using a service rig. Once enough frack fluid
had either been pumped or flowed naturally from the two wells
(approximately 15% of total frack fluid pumped), and oil cuts had
climbed steadily to approximately 25-35%, the decision was made to
shut the wells in and begin permanent facility and pipeline
construction immediately to prepare the wells for fulltime
production. Based on regulatory timeline requirements for approvals
of pipelines Pulse estimates we should have both wells on full time
production in late Q1 2019 to early Q2 2019.
Pulse President, Drew Cadenhead,
commented, "We are encouraged with the initial testing results of
our first two wells. We have drilled over 2 km of quality
reservoir rock between the two wells, and initial rates of
completion fluid flowback and consistently rising oil cuts
encouraged the experienced Pulse team to save any further testing
costs by investing those dollars straight into permanent production
equipment. We have a short pipeline tie-in (<2km) to a
production facility that can handle all our fluids, including the
rest of the completion fluids, and we expect to transition from
completion fluid recovery to hydrocarbon production within a few
weeks after construction is complete."
Bigoray: As reported Nov
28th, 2018, Pulse's contracted technical
consultants have completed Phase Two of the Bigoray Enhanced Oil
Recovery (EOR) Modelling Project and have now simulated various
solvent injection scenarios as part of the final Phase (Phase III)
of the project due for completion shortly. The detailed Phase
II work by Pulse's independent EOR contractor, as well as Pulse's
internal qualified reserve evaluators, has led to an increase of
43.9% of the previously disclosed best estimate for
discovered petroleum initially in-place ("DPIIP") prepared by
Sproule Associates Limited ("Sproule"), an independent qualified
reserves evaluator, with an effective date of December 6,
2017. Included in this increase are newly identified
reservoir areas surrounding the two Nisku pools which were likely unaffected by
the primary waterflood production scheme.
Pulse President, Drew Cadenhead,
commented "We are excited by the results of our geotechnical
modelling project to date. With the new geotechnical data we now
have, our recent financing in place, and the anticipated growing
cash flow from our successful Queenstown wells, we can now accelerate the
EOR implementation and combine the permanent EOR facility work, new
injection well drilling and re-activation of existing production
wells into a single project. This operational field work is now
underway and scheduled for completion by the time final regulatory
approval for the EOR is granted later this year."
About Pulse Oil Corp.
Pulse is a debt-free, Canadian company incorporated under the
Business Corporations Act (Alberta) that is fully funded for its next
year of operations including the Bigoray EOR program and drilling
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. Pulse is moving forward to grow
production and execute an Enhanced Oil Recovery 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
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
enhanced oil recovery 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.
READER ADVISORY
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" 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 expected completion and production operations, oil cut
percentage in the production to date and timing of full time
production in the Queenstown area
of Southern Alberta. In addition
such statement also include without limitation, statements
pertaining to the expected Bigoray EOR project, DPIIP 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: 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.
Resource Definitions
Resources encompasses all petroleum quantities that originally
existed on or within the earth's crust in naturally occurring
accumulations, including Discovered and Undiscovered (recoverable
and unrecoverable) plus quantities already produced. "Total
Resources" is equivalent to "Total Petroleum Initially In-Place".
Resources are classified in the following categories:
Total Petroleum Initially In-Place ("TPIIP") is that quantity of
petroleum that is estimated to exist originally in naturally
occurring accumulations. It includes that quantity of petroleum
that is estimated, as of a given date, to be contained in known
accumulations, prior to production, plus those estimated quantities
in accumulations yet to be discovered.
Discovered Petroleum Initially In-Place ("DPIIP") is that
quantity of petroleum that is estimated, as of a given date, to be
contained in known accumulations prior to production. The
recoverable portion of DPIIP includes production, reserves, and
Contingent Resources; the remainder is unrecoverable.
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SOURCE Pulse Oil Corp.
