Calgary, Alberta, January 30, 2019, Pulse Oil Corp. (“Pulse” or the “Company”) (TSX-V: PUL and PUL.WT) is pleased to provide the following operational update, including information on new well drilling results from the Company’s Queenstown property as well as a re-activation / EOR implementation update from Pulse’s Bigoray property.
Queenstown: As reported Dec 18th, 2018 and Jan 2nd, 2019, Pulse recently completed the drilling and fracture stimulation of the Company’s first two new wells. The wells targeted newly defined 3-D seismic lithic sandstone channels, which are the highest quality reservoirs within the Mannville Channel play of Southern Alberta. The two wells drilled 1200m and 1276m of horizontal lithic channel play and were fracked with 15 and 18 stages, respectively. All fracks were placed successfully and flowback of frack fluid and hydrocarbons were initiated immediately using a service rig. Once enough frack fluid had either been pumped or flowed naturally from the two wells (approximately 15% of total frack fluid pumped), and oil cuts had climbed steadily to approximately 25-35%, the decision was made to shut the wells in and begin permanent facility and pipeline construction immediately to prepare the wells for fulltime production. Based on regulatory timeline requirements for approvals of pipelines Pulse estimates we should have both wells on full time production in late Q1 2019 to early Q2 2019.
Pulse President, Drew Cadenhead, commented, “We are encouraged with the initial testing results of our first two wells. We have drilled over 2 km of quality reservoir rock between the two wells, and initial rates of completion fluid flowback and consistently rising oil cuts encouraged the experienced Pulse team to save any further testing costs by investing those dollars straight into permanent production equipment. We have a short pipeline tie-in (<2km) to a production facility that can handle all our fluids, including the rest of the completion fluids, and we expect to transition from completion fluid recovery to hydrocarbon production within a few weeks after construction is complete.”
Bigoray: As reported Nov 28th, 2018, Pulse’s contracted technical consultants have completed Phase Two of the Bigoray Enhanced Oil Recovery (EOR) Modelling Project and have now simulated various solvent injection scenarios as part of the final Phase (Phase III) of the project due for completion shortly. The detailed Phase II work by Pulse’s independent EOR contractor, as well as Pulse’s internal qualified reserve evaluators, has led to an increase of 43.9% of the previously disclosed best estimate for discovered petroleum initially in-place (“DPIIP”) prepared by Sproule Associates Limited (“Sproule”), an independent qualified reserves evaluator, with an effective date of December 6, 2017. Included in this increase are newly identified reservoir areas surrounding the two Nisku pools which were likely unaffected by the primary waterflood production scheme.
Pulse President, Drew Cadenhead, commented “We are excited by the results of our geotechnical modelling project to date. With the new geotechnical data we now have, our recent financing in place, and the anticipated growing cash flow from our successful Queenstown wells, we can now accelerate the EOR implementation and combine the permanent EOR facility work, new injection well drilling and re-activation of existing production wells into a single project. This operational field work is now underway and scheduled for completion by the time final regulatory approval for the EOR is granted later this year.”
About Pulse Oil Corp.
Pulse is a debt-free, Canadian company incorporated under the Business Corporations Act(Alberta) that is fully funded for its next year of operations including the Bigoray EOR program and drilling in Queenstown. Pulse owns 100% interests in the Bigoray area of Alberta, which includes two Nisku oil Pinnacle Reefs as well as 100% interests in producing assets. 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 within its Queenstown assets, infrastructure ownership and reserve growth utilizing proven enhanced oil recovery techniques and implementation of technology.
Pulse Oil Corp.
Garth Johnson, CEO
Phone: (604) 306-4421
Drew Cadenhead, President and COO
Phone: (403) 714-2336
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 the expected completion and production operations, oil cut percentage in the production to date and timing of full time production in the Queenstown area of Southern Alberta. In addition such statement also include without limitation, statements pertaining to the expectedBigoray EOR project, DPIIP and its planned development.
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. 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, 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.
Resources encompasses all petroleum quantities that originally existed on or within the earth’s crust in naturally occurring accumulations, including Discovered and Undiscovered (recoverable and unrecoverable) plus quantities already produced. “Total Resources” is equivalent to “Total Petroleum Initially In-Place”. Resources are classified in the following categories:
Total Petroleum Initially In-Place (“TPIIP”) is that quantity of petroleum that is estimated to exist originally in naturally occurring accumulations. It includes that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations, prior to production, plus those estimated quantities in accumulations yet to be discovered.
Discovered Petroleum Initially In-Place (“DPIIP”) is that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations prior to production. The recoverable portion of DPIIP includes production, reserves, and Contingent Resources; the remainder is unrecoverable.