Macke Research Capital Corp. Issues Updated Report
“IMPACT – Positive. Capital In Place To Fund Immediate Growth”
“With the recently completed financing, PUL is fully funded for a two Mannville well drilling program and to commence the next phase of the Bigoray EOR project. A successful Nisku Reef EOR project could be a game changer.” – Mackie Research; November 28, 2018 (please see attached for full report).
On November 28, 2018 Pulse announced Phase 2 of the 3 phase EOR reservoir Model was complete and we are happy to provide a brief summary below:
When Pulse acquired its core assets at Bigoray, the amount of oil sitting in our two Nisku pinnacle reefs wasn’t really an unknown. Numerous independent engineering and regulatory authorities had already estimated somewhere between 25 to 30 million barrels were originally contained in the 2 pools, and with a little over 9 million bbls already produced, the only question for Pulse (and our shareholders) was “How much more could we get out?”.
At Bigoray every additional million barrels of oil we can flow out of these pools has a material impact to our corporate value. That’s why we are methodically undergoing a highly technical independent modelling exercise, and we just completed the second of three phases with encouraging results, to determine how much oil is estimated to be left in our pools and then determining the best way to get it out.
Our biggest advantage is modern “disruptive” technologies. These pools were drilled and the vast majority of the oil produced in the late 70’s and 80’s – the days of these pools gushing 1000’s of barrels/day of oil were thought to be long gone – but are they? We know these pools still hold around 15 million barrels more of unproduced oil. Disruptive new technologies can now help us access this oil – the advent of 3-D seismic combined with proven and successful completion techniques developed originally for horizontal drilling, has changed the game in the oil industry. As Pulse loves to say, the best place to find oil is right under the oil tree! These new completion technologies are perfectly suited to selectively suck, layer by layer from the top down, the maximum remaining oil out of our reservoirs.
Our recent 3-D seismic modelling of our 2 pools has created a brilliant detailed 3-D view of exactly what these two pools look like 2.5 km underground! Remember, 3-D seismic wasn’t developed until 20 years after these pools were discovered. Note the strip of green making the “smile” for our two “pinnacle eyes”. This is a great example of previously unmapped oil accumulated to the SW of the two main reefs. Think of waves coming from the NE and smashing these coral buildups 400 million years ago, The coral rubble gets washed over the top of the reefs and piles up on the SW edge. This rubble pile (the smile) makes us smile! It’s excellent reservoir rock – a great undrilled target for us. Our new high resolution 3-D mapping also shows the highest point in either reef (the eyes!) has yet to be drilled. This opens the door for not only a perfect new location for an EOR well, but also further potential reserves not previously recognised by our independent evaluators.
This 3-D modelling now becomes a critical part of the overall geo-modelling work to maximise recovery from that 15+ million barrels of oil we know is still stuck in our pools.
To the average investor, some of this detailed geological work, including core studies and newly developed Formation Micro-Imaging (FMI) techniques is tough to understand, but to Pulse’s technical team, it all adds to our excitement level. This highly technical work includes images seen below, showing our reservoir full of vugs (holes) looking basically like Swiss Cheese on the left, and having 183 open fractures (oil highways) trending SW-NE (center pic) throughout a single well (right pic)!
All this new technical data is very positive news for Pulse according to President and COO Drew Cadenhead; “Incorporating technology to maximise our recovery of the remaining oil in our Bigoray pools is a different business model for us. Our team’s previous triumphs relied heavily on exploration success, discovering new oil – which of course came with the inherent risks. Our industry is changing and accessing these types of potential oil reserves with little exploration risk is the cornerstone of our new business plan.”
To learn more about Pulse Oil Corp., please visit www.pulseoilcorp.comand please read Pulse’s “Reader Advisory” related to forward-looking information within the meaning of applicable securities law athttp://www.pulseoilcorp.com/disclaimer/.