Pulse Oil Corp (CVE:PUL) shares shot up 25% on Monday as the group lifted its daily production dramatically as it kicked off the process of re-establishing output from its recently acquired Bigoray-area assets, where it has a 100% working interest (WI).
"The first phase of re-establishing shut-in production from our Bigoray assets has started strongly," said Drew Cadenhead, Pulse's president and chief operating officer.
"A relatively simple workover of a poorly performing NGL-rich gas well, followed by a re-activation of another pumping oil well that has been shut in for over 3 years, has provided Pulse with additional BOE's/d and cash-flow."
Output has increased from around 70 barrels of oil equivalent per day to more than 300 Boe/d (84-per-cent oil) with the start of Pulse's planned reactivation program.
Pulse expects these wells to further stabilize and settle in after initial flush production at rates of around 250 Boe/d (barrels of oil equivalent per day).
He added: "For a start-up like Pulse, this early success creates growing cash-flow, and in a company with zero debt, cash flow provides Pulse the means to bring further production on from our ongoing well reactivation program in the field.
"Our business plan has well and truly started, and we look forward to further growth and unlocking value for our shareholders."
Notably, today's release also contained news that it has completed, subject to the Alberta regulator's approval, the acquisition of petroleum and natural gas rights in 160 acres of Bigoray land immediately next to its Bigoray Nisku D Enhanced Oil Recovery (EOR) project.
The acquisition, from a private Alberta company, was funded using working capital provided by Pulse's growing operational cash flow, it added.
Pulse Oil as big plans to grow its company exponentially through the strategic acquisition of low cost but high potential assets in western Canada.
Chief among its plans involves the Bigoray assets, whose development should mark an absolute game- changer for the firm in terms of scale.
"We have an opportunity in front of us, without drilling a well, to increase our NPV10 of reserves to, on a low case, about $170mln and on a high case $215mln," the firm said in September this year.
Bigoray consists of the Cardium oil pools, the Mannville gas pools, the Pekisko oil pool and the Nisku oil pools.
Shares added 25% to stand at C$0.20 each.