Shares in Pulse Oil Corp (CVE:PUL) gushed higher Monday as it continues to pursue the 'Pulse plan' and has recently added around 100 barrels of oil per day (bopd) to production by reactivating a previously shut-in well at its Bigoray area assets, creating more cash flow.
The firm has also revitalised associated facilities and pipelines which has increased its daily production to around 300 BOE/D (barrels of oil equivalent per day, at 70% oil and liquids), it said.
It has also recommissioned important infrastructure which will be critical to the ongoing EOR (enhanced oil recovery) programme.
"Even though we are taking a methodical approach to operations and funding our program using cash flow as planned, we are moving quickly and putting up some strong results," said Drew Cadenhead, Pulse's president and chief operating officer.
"These reactivated Bigoray oil wells are stable, light oil producers that at Western Canada's premium light oil prices (Q2 2018 avg: CDN$80/bbl), are providing significant cash flow (Net Q2 2018 Cash Flow: CDN$60/bbl) for our continuing operations.
"Of further interest, we are proud to have successfully reactivated critical infrastructure including pipelines, injection wells, and surface production infrastructure that had been moth-balled for a number of years.
"Acquiring neglected assets in our business can prove frustrating and sometimes costly, but our experienced team employed state of the art technologies to ensure all facilities firstly met all safety standards, and secondly provide plenty of production capability for our upcoming EOR production at a fraction the cost of building new infrastructure.
"We will continue to execute on our reactivation, drilling and EOR programs; we feel these will lead to creation of significant value through increased reserves, production and of course cash flow. We like the progress we are making and will continue to execute the Pulse plan."
Pulse expects these long-life wells, such as the latest one reactivated, will remain stable at rates of between 75 and 100 boed (barrels of oil equivalent per day)
Meanwhile, at Pulse's Queenstown property, planned is at least one low-risk horizontal well to be spudded later this year, also funded by cash flow.
That would represent the first spudded well since the company went public in mid-2017.
Pulse shares added over 12% in Toronto to C$0.325 on Monday.