CALGARY, June 11, 2019 /CNW/ - Pulse Oil Corp.
("Pulse" or the "Company") (TSX-V: PUL and PUL.WT) is pleased to
announce the key findings of Pulse's enhanced oil recovery ("EOR")
study.
Schlumberger Canada Ltd, one of the world's leading providers of
technology for reservoir characterization, drilling, production,
and processing to the oil and gas industry, was awarded the
contracts to complete all three phases of the Company's
petrotechnical modelling of the Bigoray Nisku D and E Pools, prior
to physical implementation of the EOR schemes.
The three phases of Pulse's EOR study were defined
as:
Geological Study
Geological and Geophysical Modelling
Reservoir Simulation
The EOR study has an effective date of March 2019 and the key factors and the
conclusions from the EOR study are as follows:
- The three phases of the EOR study, conducted by Schlumberger
Canada Ltd. are the first ever 3-dimensional analysis on the Nisku
D & E pinnacle reefs.
- The reservoir simulation conducted as part of the EOR study
included over 200 separate computer iterations of historical
production, adjusting the geo-model after every iteration to ensure
the model was as accurate as possible based on historical
production and modern 3-D interpretations, before beginning the
solvent flood forecast.
- The detailed simulation allowed the team to model the most
effective positioning of solvent injectors, pressures and rates of
injected fluids and optimum production take-points to maximise
ultimate recovery from these established pools.
- The go-forward simulation under the EOR program resulted in a
peak estimated Nisku D-Pool production rate of approximately 2,000
barrels of oil/day, with peak production, including Nisku E
production increasing to approximately 3,000 barrels of oil/d If
the Nisku D-Pool was implemented first and Nisku E-Pool was started
3 years after.
- This production simulation was prepared, at Pulse's request, to
assume the EOR program is instituted on the Nisku D pool solely at
first, in order for Pulse to preserve working capital and begin
generating cash flow prior to funding the Nisku E program.
- Pulse, subject to having sufficient working capital, has the
option to accelerate the EOR program and initiate the Nisku E Pool
EOR program in conjunction with the D pool. As a result of this
work to date, Pulse estimates that the simultaneous implementation
of both pools results in peak forecast rates of approximately 5,000
barrels/day.
- Forecast production would peak within two years of
implementation of the EOR program and will continue on primary
solvent flood production for approximately ten years, followed by a
production "blow-down" period that is estimated to continue for
another ten and up to 20 years with proper oil field
management.
Drew Cadenhead, Pulse President
and COO, commented, "Using modern 3-D seismic and cutting edge
digital visualisation software is a first for these 40-year old
pools. The resultant increase in Discovered Petroleum Initially In
Place led to a significant increase to our internal forecasts for
potential recoveries from our two pools. Adding these types of
growth opportunities with very little/no exploration risk fits the
Pulse game plan perfectly. These are different times in our
industry, and we feel low-risk value creation is key for start-ups
like ourselves to prosper."
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.
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",
"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.
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.
Contingent Resources are those quantities of petroleum
estimated, as of a given date, to be potentially recoverable from
known accumulations using established technology or technology
under development but which are not currently considered to be
commercially recoverable due to one or more contingencies. Economic
Contingent Resources (ECR) are those contingent resources that are
currently economically recoverable.
Undiscovered Petroleum Initially In Place ("UPIIP") is that
quantity of petroleum that is estimated, on a given date, to be
contained in accumulations yet to be discovered. The recoverable
portion of UPIIP is referred to as Prospective Resources and the
remainder is unrecoverable.
Prospective Resources are those quantities of petroleum
estimated, as of a given date, to be potentially recoverable from
undiscovered accumulations by application of future development
projects. Prospective Resources have both an associated chance of
discovery and a chance of development.
Unrecoverable is that portion of DPIIP and UPIIP quantities
which is estimated, as of a given date, not to be recoverable by
future development projects. A portion of these quantities may
become recoverable in the future as commercial circumstances change
or technological developments occur; the remaining portion may
never be recovered due to the physical/chemical constraints
represented by subsurface interaction of fluids and reservoir
rocks. Uncertainty Ranges are described by the Canadian Oil and Gas
Evaluation Handbook as low, best, and high estimates for reserves
and resources as follows:
Low Estimate: This is considered to be a conservative estimate
of the quantity that will actually be recovered. It is likely that
the actual remaining quantities recovered will exceed the low
estimate. If probabilistic methods are used, there should be at
least a 90 percent probability (P90) that the quantities actually
recovered will equal or exceed the low estimate.
Best Estimate: This is considered to be the best estimate of the
quantity that will actually be recovered. It is equally likely that
the actual remaining quantities recovered will be greater or less
than the best estimate. If probabilistic methods are used, there
should be at least a 50 percent probability (P50) that the
quantities actually recovered will equal or exceed the best
estimate.
High Estimate: This is considered to be an optimistic estimate
of the quantity that will actually be recovered. It is unlikely
that the actual remaining quantities recovered will exceed the high
estimate. If probabilistic methods are used, there should be at
least a 10 percent probability (P10) that the quantities actually
recovered will equal or exceed the high estimate.
Development Unclarified is a project maturity sub-class of
contingent resources that refers to the development plan evaluation
is not complete and there is ongoing activity to resolve any risks
or uncertainties.
Certain resource estimate volumes disclosed herein are
arithmetic sums of multiple estimates of DPIIP or UPIIP, which
statistical principles indicate may be misleading as to volumes
that may actually be recovered. Readers should give attention to
the estimates of individual classes of resources and appreciate the
differing probabilities of recovery associated with each class as
explained under this Resource Definitions section.
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SOURCE Pulse Oil Corp.