CALGARY, Sept. 18, 2018 /CNW/ - Pulse Oil Corp. ("Pulse" or the "Company") (TSX-V: PUL and PUL.WT) is pleased to provide an operational update as follows:
Bigoray Enhanced Oil Recovery Project:
Phase Two of the Bigoray Enhanced Oil Recovery (EOR) Modelling Project is making good progress with Pulse having now completed the 3-D seismic reprocessing portion of the project, covering all of Pulse's two Nisku Pinnacle Reefs. The Company has recently awarded Weatherford Canada Ltd. a sub-contract to conduct the Bigoray Fluid Sampling, Pressure-Volume-Temperature ("PVT") analysis and miscibility testing program. In situ oil samples have now been taken from the Bigoray reservoirs and a miscibility study is underway providing important comparisons of potential solvent blends to optimize forecast EOR production.
Pulse President and COO, Drew Cadenhead, commented, "All modelling phases to date have gone as planned and with encouraging results. Interestingly, the 3-D seismic reprocessing effort recently completed has provided amazing detail to our two pinnacle reefs that has never been seen before. These reservoirs were discovered and developed in the late 70's and early 80's before modern 3-D seismic methods existed. The new 3-D data interpretation has not only provided valuable detail to the internal architecture of our pinnacle reefs - critical in planning the miscible flood, it has also shown the optimal (highest) positions in the reefs were never drilled. This creates the possibility of un-booked attic-oil reserve additions in the future with optimally placed 3-D defined production wells."
Queenstown Drilling Program:
Pulse intends to spud its first horizontal well targeting the Lithic Mannville Oil Fairway in Q4 of 2018. The Lithic Mannville Fairway is a well-known producing oil trend 340 miles long and 108 miles across and, importantly, has recently provided impressive drilling results as announced by Prairie Provident Resources on September 10, 2018.
Pulse has now secured surface access where construction will be initiated on a single multi-well pad, supporting the drilling of the Company's first two horizontal wells. Importantly to Pulse, the flat farmland in the area, combined with planned drilling operations during winter freeze up, allows Pulse the potential to build inexpensive minimum disturbance sites.
Drew Cadenhead commented further, "These are exciting times for Pulse leading up to our first drilling program since acquiring these Queenstown assets last year. Recent industry on-trend drilling results are very encouraging, and our newly interpreted 3-D seismic AVO work at Queenstown will hopefully lead us to similar high-productivity wells on our property. These wells could drastically change Pulse's production and reserve profile upon success, we can't wait to get the drill bit turning."
Pulse is awaiting regulatory approval for the next two Bigoray wells ready to be reactivated. Pulse anticipates these two wells will add approximately 200 barrels of oil per day once reactivation work is complete. Planning and budgeting for these projects is complete, transportation and marketing of the expected incremental oil is contracted; Pulse is ready to get the work done once regulatory approval has been received.
Garth Johnson, Pulse CEO commented, "For Pulse, our focus has always been reactivating oil production at Bigoray as efficiently and cost-effectively as possible while also advancing the EOR program. We had planned to have these two additional wells up and running this month, but regulatory processes have been slower than anticipated. However, the Pulse management team has a history of being nimble when allocating financial and technical resources and this unexpected regulatory delay has opened another opportunity to initiate drilling at our Queenstown property. Recently disclosed drilling results from five new wells drilled by Prairie Provident targeting the same Mannville Lithic formation near our Queenstown property has caught our attention. We have just completed a reinterpretation of our recently acquired 3-D seismic data set with a goal to identify the best reservoir sections that had been serendipitously intercepted in a small section of our best horizontal producer. We always focus our manpower and working capital on the most impactful operations, and these newly disclosed off-setting Mannville Lithic well results have jumped our Queenstown drilling plans ahead of our Bigoray reactivations based on the opportunity to create significant value for Pulse. While we continue to wait for regulatory approval at Bigoray, we will redirect working capital and cashflow to fund Pulse's first Queenstown well, and if successful, a second well shortly after, both from the same drilling pad. Pulse is getting a lot done operationally using cash flow from our successful reactivation program to date, and to keep doing so, we need to protect our balance sheet and remain debt-free. We are constantly prioritizing our operations to invest in operations that fit within our risk profile that also have the best opportunity to create the most value. We will reactivate more wells at Bigoray soon - that oil isn't going anywhere, but we feel this slight re-focussing in the short-term will pay off in the long-term."
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.
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 that Pulse intends to spud its first horizontal well targeting the Lithic Mannville Oil Fairway in Q4 of 2018, and that Pulse anticipate that regulatory approval to the reactivation of the next two Bigoray wells will be received and that these wells will add approximately 200 barrels of oil per day once the reactivation work it complete. 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. 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 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 approvals and the timing thereto, government regulation or action, the costs, timing and results of EOR 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.
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.
SOURCE Pulse Oil Corp.