CALGARY, Nov. 2, 2017 /CNW/ - Pulse Oil Corp. ("Pulse" or the "Company") (TSX-V: PUL) announces that Pulse has completed its two transactions previously reported on October 16, 2017 to consolidate its interests in the Bigoray area of Alberta, resulting in 100% control of Pulse's Bigoray operations.
The transactions secure Pulse's interest in two strategic Nisku oil pools, providing substantial upside to Pulse through the addition of new reserves, restarting of existing behind-pipe production and providing Pulse the opportunity to implement a low-risk Enhanced Oil Recovery ("EOR") project to increase recovery factors of the petroleum initially in place ("PIIP") from approximately 35% currently and potentially up to 80%.
Importantly to Pulse, years of production on these Bigoray discoveries and approximately 50 others in the near vicinity have provided Pulse's team significant production history and confirmation that these enhanced oil recovery techniques work and have resulted in an average recovery factor of 80%.
Operational Outlook: Restarting of Existing Behind Pipe Production to Commence Production Growth Plans at Bigoray
Pulse's immediate plans to grow production from well reactivations at Bigoray are in place and can be funded through current working capital and cash flow. Prior to Pulse's agreement to consolidate the Bigoray assets, Pulse and its joint venture partner invested approximately $450,000 in work to prepare pipelines and facilities in anticipation of restarting production. With full control of the planning and pace of operations, Pulse will start to bring production from the Bigoray area back online in November.
Drew Cadenhead, Pulse President and COO commented, "Operationally speaking, we are excited to take control of these neglected assets at Bigoray. Our first step will be to immediately bring back on production that was shut in 3 years ago during historical low commodity prices. As a proven low-cost operator with no debt, Pulse's team is ready to implement the same operational acumen we demonstrated in our previous successes – this is what we do, capture strategic assets, unlock the bigger picture upside and increase value for shareholders. By bringing on immediate cash flow from the restarting of existing behind pipe production, we can begin to fund our EOR plan in the Nisku D and E pools, a low-risk operation with tremendous upside for a company our size."
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 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 in any way passed upon the merits of the Proposed Acquisition and associated transactions and 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 completion of the Bigoray enhanced oil recovery project and the re-starting of shut-in production at Bigoray. 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; uncertainties about estimates of reserves and resource potential and the ability to add proved reserves in the future; the assumptions underlying production forecasts; 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 thereof; 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.
SOURCE Pulse Oil Corp.