CALGARY, Alberta, Jan. 18, 2023 (GLOBE NEWSWIRE) — Pulse Oil Corp., (“Pulse” or the “Company”) (TSXV: PUL) is off to a strong start in 2023 and is happy to provide a production and operations update, along with progress related to the Company’s 100% owned Bigoray area Enhanced Oil Recovery (“EOR”) project.
Production:
Pulse’s oil and gas production over the past 30 days has averaged approximately 355 BOE/D (64% oil) and over the past week has reached 425 BOE/D (68% oil) following recently completed operations in both the Company’s core areas of Bigoray and Queenstown. The Company reports that lingering industry downturns in Alberta has provided the opportunity to complete all work quickly and on budget.
Pulse CEO Garth Johnson added; “The combination of Pulse’s strong team, surplus equipment in our areas and a readily available service workforce has allowed us to not only add additional oil production, but do so without drilling new wells or incurring any additional reclamation liabilities. That’s a bonus in our industry these days. Going forward we forecast strong oil prices will continue to ramp up activity, we will be focussed on planning and safely executing our plan to continue growing our production and cash-flow.”
Queenstown Update:
In December 2023, Pulse cleaned out a horizontal well drilled by Pulse in 2018 (capital cost $185,000), moving the well from shut-in / non-producing status to production rates of approximately 75 BOE/D (71% oil). Pulse is in the process of a second 100% interest horizontal well clean-out from the same surface pad and expects similar results. Robust commodity prices and a better understanding of the required operation and potential clean out results supported this work as we continue to strengthen Pulse cashflow moving forward.
Bigoray Reactivation Update:
Pulse’s team has re-activated a number of historical producing wells in the Bigoray area, while continuing to acquire core assets. Many of our acquisitions are via abandoned or suspended pipelines and production facilities (at little to no cost) from the AER’s Orphaned Well Association, or from third parties looking to divest of liabilities associated with excess infrastructure.
Pulse’s newly acquired infrastructure, combined with the Company’s existing Bigoray production facilities, is providing immediate monetisation opportunities for shut-in oil and gas wells. Importantly the longer term goal of this acquisition work is to provide key components necessary to advance the Company’s EOR mandate.
Bigoray EOR:
Pulse has made several investments at much lower cost than initially estimated to progress the EOR, including the completion of the Bigoray production facility and critical pipeline acquisitions.
Company President Drew Cadenhead noted; “Our management and operations team remains focused on all aspects of the Company’s operations such as risk, cost, cashflow, production, reserves and much more, but we know our prime goal is the initiation of the miscible flood in our two Bigoray oil pools. With all wells in that plan already drilled, we’re fortunate the drilling risk has been taken out of the equation, meaning we can see the goal-line, and by employing proven EOR technology, we can start focusing on monetisation without any further drilling or associated reclamation liabilities. Our newly re-activated production has coincided with strong oil price increases to accelerate our entire EOR timeline.” Cadenhead also noted, “Pulse has existed in survival mode for the past two years as global circumstances stalled oil and gas investment momentum. We’ve made it through now, and it is clear there is an increasing energy supply shortage that continues to increase oil and gas prices as the reality of the push towards de-carbonization conflicts with the reality of near-term fossil fuel demands. It’s a good time to own assets like our Bigoray oil pools, it’s time to get busy.”
About Pulse
Pulse is a Canadian company incorporated under the Business Corporations Act (Alberta) that is primarily focused on a 100% Working Interest Enhanced Oil Project Located in West Central Alberta, Canada. The project includes two established Nisku pinnacle reef reservoirs that have been producing sweet light crude oil for over 40 years. The Company plans to institute a proven recovery methodology (NGL solvent injection) to further enhance the ultimate oil recovery from these two proven pools. With under 10 million barrels of oil recovered to date, and representing just 35% recovery factor from the pools, Pulse is moving forward to execute the EOR project and unlock significant value for shareholders. Pulse’s total reclamation liabilities are just $2.23 Million, which, when compared to many peers in the industry in Western Canada, are very low.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information contact:
Pulse Oil Corp.
Garth Johnson
CEO
604-306-4421
[email protected]
Drew Cadenhead
President and COO
604-909-1152
[email protected]
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. Boe’s 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.
Forward Looking Statements:
This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking information. In particular, this news release contains forward-looking information regarding: production rates, reactivation operations, oil and gas prices, EOR projects and the potential timing of operations. There can be no assurance that such forward-looking information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such forward-looking information. This forward-looking information reflects Pulse’s current beliefs and is based on information currently available to Pulse and on assumptions Pulse believes are reasonable. These assumptions include, but are not limited to: oil and gas prices, timing and success of operations, weather, well productivity and Pulse finances. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Pulse to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: general business, economic, competitive, political and social uncertainties; general capital market conditions and market prices for securities; the actual results of future operations; competition; changes in legislation, including environmental legislation, affecting Pulse; the timing and availability of external financing on acceptable terms; and loss of key individuals. A description of additional risk factors that may cause actual results to differ materially from forward-looking information can be found in Pulse’s disclosure documents on the SEDAR website at www.sedar.com. Although Pulse has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Readers are cautioned that the foregoing list of factors is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Forward-looking information contained in this news release is expressly qualified by this cautionary statement. The forward-looking information contained in this news release represents the expectations of Pulse as of the date of this news release and, accordingly, is subject to change after such date. However, Pulse expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.
