CALGARY, July 30, 2018 /CNW/ - Pulse Oil Corp. ("Pulse" or the "Company") (TSX-V: PUL and PUL.WT) announces the Pulse team has recently added approximately 100 barrels of oil per day by reactivating another previously shut-in well from Pulse's 100% owned Bigoray area oil assets. In addition, Pulse has reactivated associated facilities and pipelines as planned, increasing Pulse's daily production to approximately 300 BOE/D (70% oil and liquids), and importantly, re-commissioning important infrastructure which will be critical to the Company's ongoing EOR program.
Pulse expects these mature, long-life wells, such as the latest well that was reactivated to remain stabilized at rates of approximately 75-100 BOE/d (96% oil), providing strong cash flow for the Company to continue to execute on Pulse's operational plans. Pulse's team will now move on to the next wells to be reactivated while continuing to advance the Bigoray Enhanced Oil Recovery project to the injection phase.
At Pulse's Queenstown property, the operations team is preparing surface drilling locations for at least one low-risk Glauconite Lithic Channel horizontal well planned to be spudded later this year, also funded by cash flow. With over 250 years in the oil and gas business, Pulse's experienced team has drilled hundreds of wells to date globally, and they are excited to spud Pulse's first well since going public in mid-2017. Importantly, the drilling team will use Pulse's 3D seismic data, combined with Pulse's advanced AVO work tying the seismic data to the best performing sweet spots of existing horizontal wells to maximize Pulse's chance for drilling success.
Drew Cadenhead, Pulse President and COO commented; "Even though we are taking a methodical approach to operations and funding our program using cash flow as planned, we are moving quickly and putting up some strong results. These reactivated Bigoray oil wells are stable, light oil producers that at Western Canada's premium light oil prices (Q2 2018 avg: CDN$80/bbl), are providing significant cash flow (Net Q2 2018 Cash Flow: CDN$60/bbl) for our continuing operations. Of further interest, we are proud to have successfully reactivated critical infrastructure including pipelines, injection wells, and surface production infrastructure that had been moth-balled for a number of years. Acquiring neglected assets in our business can prove frustrating and sometimes costly, but our experienced team employed state of the art technologies to insure all facilities firstly met all safety standards, and secondly provide plenty of production capability for our upcoming EOR production at a fraction the cost of building new infrastructure. We will continue to execute on our reactivation, drilling and EOR programs; we feel these will lead to creation of significant value through increased reserves, production and of course cashflow. We like the progress we are making and will continue to execute the Pulse plan."
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About Pulse Oil Corp.
Pulse is a Canadian company incorporated under the Business Corporations Act (Alberta) and has plans to become a leading oil and gas company. Pulse owns 100% interests in the Bigoray area of Alberta, that include two Nisku oil Pinnacle Reefs as well as 100% interests in producing assets in the Queenstown area of Alberta. 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, 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.
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 Pulse's expectations related to the planned operations and anticipated results related to the Queenstown assets, including the anticipated timing to drill and conduct its planned operations. Statements relating to "reserves" are also deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves can be profitably produced in the future.
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. Statements in this press release containing forward-looking information include but are not limited to the Bigoray reactivation and EOR program, the Company's Queenstown project and all of Pulse's planned development and operations. 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, sufficient cash-flow from operations, 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.
SOURCE Pulse Oil Corp.