CALGARY, May 22, 2019 /CNW/ - Pulse Oil Corp.
("Pulse" or the "Company") (TSX-V: PUL and PUL.WT) is pleased to
announce an operational update on successful production results
from Pulse's Queenstown assets
located in Southern Alberta.
Queenstown Results Exceed Expectations
As part of Pulse's light-oil drilling campaign these first two
Queenstown wells targeted Pulse's
newly defined 3-D seismic lithic sandstone channels, which are the
highest quality reservoirs within the Mannville Channel play.
These first two wells have initial combined test rates of
over 1,350 boe/d, (79% total fluids), with oil cuts presently 48%
oil and rising daily as total load fluid used in well completion
stimulation operations is produced out of the wells.
Pulse's production team is continuing to monitor these two wells
and the short-term production rates achieved to date, in order to
optimize the wells for long-term production. These results to date
have encouraged Pulse's management team to initiate plans for an
additional, multi-well drilling program at Queenstown in coming months; details will be
announced upon completion of well planning and board approval.
Bigoray Results Coming Shortly
Pulse is also happy to report that testing operations at Bigoray
are proceeding. Both of these new oil wells, that will become
injectors in the future for Pulse's enhanced oil recovery project
at Bigoray, are expected to be placed on production shortly. At
current, both wells have been perforated and swab testing is
underway. Pulse expects to announce the results of the initial
swab/flow testing program shortly.
Drew Cadenhead, Pulse President
and COO, commented, "We are very excited about these production
rates at Queenstown announced
today. Not only will this strong new production increase cash flow
immediately for Pulse, we are encouraged enough to initiate
another, larger drilling campaign at Queenstown to add even more production and
cash flow in the coming months. I would like to congratulate our
operations team for their perseverance drilling in the heart of
winter and continuing through spring break-up. Extreme cold
followed immediately by flood conditions challenged our team, but
we are proud to say all Queenstown
operations were completed on budget and without a single HSE
incident. At current rates, the combined production has exceeded
management's expectations and Pulse is preparing a plan to continue
its successful Queenstown drilling
activity in coming months."
The Company cautions that the short-term test rates disclosed in
this news release are preliminary in nature and may not be
indicative of stabilized on-stream production rates or of future
product types. The test results are not necessarily
indicative of long-term well or reservoir performance or of
ultimate recovery. In addition, total fluid recovery rates
during testing includes recovery of load fluids used in well
completion stimulation operations. Actual results will differ
from those realized during testing, and the difference may be
material.
About Pulse Oil Corp.
Pulse is a debt-free, Canadian company incorporated under the
Business Corporations Act (Alberta) that is focused on methodically,
safely, yet aggressively making progress to increase production and
reserves in the Queenstown and
Bigoray acreages it holds 100% interests in. In addition, Pulse is
advancing its Bigoray EOR program and new drilling efforts 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 in the Queenstown area of southern Alberta. Pulse is moving forward to grow
production and execute an EOR 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 potentially 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 EOR 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 neither approved nor
disapproved of the contents of this press release.
READER ADVISORY
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",
"potentially" 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 Bigoray and Queenstown operations currently underway,
including production rates, cash flow, drilling plans and results,
production testing, well completion, anticipated future production,
and facilities related to the assets of Pulse Oil. In addition such
statements also include without limitation, statements pertaining
to the expected Bigoray EOR project 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: production and drilling results that deviate from
management's current expectations; delays in the Company's drilling
activities and tie-in of infrastructure; 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.
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. Boes 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.
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SOURCE Pulse Oil Corp.
