CALGARY, Dec. 11, 2017 /CNW/ - Pulse Oil Corp. ("Pulse" or the "Company") (TSX-V: PUL) announces the Pulse team has begun the process of re-establishing shut-in production from Pulse's recently acquired strategic Bigoray area assets (Pulse 100% Working Interest).
Current daily production for Pulse has increased from approximately 70 BOE/D to more than 300 BOE/d (84% oil) with the initiation of Pulse's planned reactivation program. Pulse expects these mature, long-life wells to further stabilize and settle in after initial flush production at rates of approximately 250 BOE/d.
Pulse's experienced operating team will continue to safely and methodically implement additional production reactivation opportunities associated with these 100% controlled assets, with plans to reactivate another five to seven wells at Pulse's Bigoray and Queenstown properties over the coming weeks.
Pulse also announces that it has completed, subject to Alberta Energy Regulatory approval, the acquisition of all PNG rights in 160 acres of Bigoray land immediately adjacent to Pulse's 100% owned Bigoray Nisku D Enhanced Oil Recovery ("EOR") project, which strategically locks up key acreage for Pulse to pursue further upside within the EOR program. The acquisition, from an arms-length private Alberta company, was funded using working capital provided by Pulse's growing operational cash flow.
Drew Cadenhead, Pulse President and COO commented; "The first phase of re-establishing shut-in production from our Bigoray assets has started strongly. A relatively simple workover of a poorly performing NGL-rich gas well, followed by a re-activation of another pumping oil well that has been shut in for over 3 years, has provided Pulse with additional BOE's/d and cash-flow. For a start-up like Pulse, this early success creates growing cash-flow, and in a company with zero debt, cash flow provides Pulse the means to bring further production on from our ongoing well reactivation program in the field. Our business plan has well and truly started, and we look forward to further growth and unlocking value for our shareholders."
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 has recently completed three transactions to consolidate its interests in the Bigoray area of Alberta, resulting in 100% control of Pulse's Bigoray operations that include two Nisku oil Pinnacle Reefs. 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 and Nisku trends in Western Canada. Pulse will 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 information. 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. These 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 us will be those anticipated. Statements in this press release containing forward-looking information include but are not limited to the restarting or reactivating of shut-in production at Bigoray and Queenstown. 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, regulatory approvals related to Pulse acquisitions, 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 and results of drilling and operations; the availability of equipment, services, resources and personnel required to complete the Company's 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 may be misleading as an indication of value.
SOURCE Pulse Oil Corp.