Sign up USA
Proactive Investors - Run By Investors For Investors

Point Loma Resources' Paddle River acquisition could double output in near term

Broker Mackie has repeated a 'buy' and $1.10 price target.
Point Loma Resources' Paddle River acquisition could double output in near term
YesteYesterday, the Salt Bush venture said it had acquired two wells and rights at its Paddle River asset

Point Loma Resources Ltd (CVE:PLX) is fully funded via its two joint ventures with Salt Bush and Evenergy and is looking at significant production increases in the short term at little cost.

So says broker Mackie, which has repeated a 'buy' and $1.10 price target.

Yesterday the Salt Bush venture said it had acquired two wells and rights at its Paddle River asset - firing the starting gun on new production from one well earmarked for next month (September).

The 12-4 well was drilled in 2013 but has not been produced due to past facility constraints  but output is now anticipated to begin in September, said Point Loma.

The 2-4-56-7W5 well has produced 200mln cubic feet of gas and 4,000 barrels of oil in total to date and is a potential re-entry candidate into the Ostracod A pool

Including the 12-4 well, the broker estimates the total net behind pipe production in the Paddle River area is between 650 boe/d and 750 boe/d (barrels of oil equivalent per day).

"We expect the majority of this production to be on-stream within the next 8 weeks," said analyst Bill Newman.

"The tie-in of behind pipe volumes in the greater Paddle River area has the potential to double corporate production in the near term which should rerate the stock.

"An additional development drilling commencing in September could add 250 boe/d to 400 boe/d by year-end," added the analyst.

View full PLX profile View Profile

Point Loma Resources Timeline

Related Articles

Point Loma Resources poised for growth as its plans accelerate
May 24 2017
The oiler now closed its joint venture funding deal with the Transerv subsidiary and gained a new investor
Repsol_rig_001.png
November 10 2016
Range Energy Resources Inc. said its contractor had spud the fourth well at Shewashan as Gas Plus Khalakan, the sole contractor of the Khalakan production-sharing contract in the Kurdistan region of Iraq, issued an operations update regarding the Shewashan field
Copyright © Proactiveinvestors.com, 2017. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use