logo-loader

Pulse Oil expects to grow output with Bigoray well reactivation

Last updated: 09:31 09 Oct 2018 EDT, First published: 06:38 09 Oct 2018 EDT

1539100836_Alberta
Pulse owns 100% interests in the Bigoray area of Alberta and 100% interests in producing assets in the Queenstown area

Pulse Oil Corp (CVE:PUL) updated on the reactivation of wells at its Bigoray assets in Alberta, saying that it expects the transfer from the province's regulator of its next well in the Nisku E pool to be in place by October 23 this year.

Pulse said this well has "clear economic support" for reactivation, and it is expected to add between 80 and 100 barrels of oil equivalent per day (boepd) to the company's growing production profile.

In addition, Pulse also revealed it had acquired, from an arm's-length third party, and subject to standard approvals, one Bigoray well bore and up to two further well bores in the future.

On the well transfer, Pulse's COO Drew Cadenhead said: "This is a win-win situation as the Alberta taxpayer won't have to fund the abandonment costs for the well, instead, they will benefit from future royalty payments when we get the well producing once again.

"Pulse benefits from current high commodity prices and increasing corporate production and cash flow base, all part of our near-term business plan."

On the acquisition deal, Pulse said the primary well acquired was currently owned 25% by Pulse, and after approval it will have 100%.

The primary well of interest acquired by Pulse was considered the best well in the Nisku D pool during the principal production and water flood years.

Previously, it  produced around 1.6 million barrels of oil over its 34 years of continuous production at rates as high as 800 boe/d and then averaging 112 boe/d in the final eight months of production before being shut-in due to low oil prices at that time.

Also in Tuesday's statement, and as previously announced, Pulse intends to spud its first horizontal well targeting the Lithic Mannville oil fairway at the Queenstown assets in the fourth quarter this year.

The  fairway is a well-known producing oil trend 340 miles long and 108 miles across and, importantly, has recently provided impressive drilling results as announced by Prairie Provident Resources in September this year.

Pulse Oil Corp shares were unchanged in Toronto at $0.24 each.

Pulse Oil planning for an enhanced recovery program at flagship Bigoray

Pulse Oil (CVE:PUL) President Drew Cadenhead and CEO Garth Johnson sat down with Steve Darling from Proactive Investors to talk about the work that was done this winter on their projects including their flagship Bigoray and how this set up the big works schedule for this summer. Cadenhead...

on 04/12/2019