Point Loma Resources Ltd (CVE:PLX) (OTCMKTS:FMTNF) said it expects to begin building production facilities at its Rex oil discovery in the second quarter of 2019, as it unveiled a financial and operational update on Wednesday.
The oil and gas company controls over 150,000 net acres on the prospective multi-zone Mannville to Mississippian fairway of West Central Alberta, with over 230 net drilling opportunities.
Specifically, the company's oil opportunities include follow-up to it recent discovery at its Rex (Upper Mannville) oil play at Wizard Lake, which it secured the rights to in 2018. This is in addition to an internally mapped Lower Mannville oil opportunity to the south of the firm's existing producing oil development at Paddle River and two internally identified Banff oil opportunities.
"Point Loma also has an undeveloped land position in the evolving West Basin Duvernay shale oil play where industry activity continues to increase in terms of horizontal drilling and land sales," noted the company in a release.
Fiscal and operational results
The company reported its 4Q and 2018 results for the quarter and year ended December 31, 2018.
In the fourth quarter, Point Loma reported revenues of C$1.17 million, up from $1.11 million in the same period a year ago. In 2018, it reported revenues of C$5.7 million, up from C$4.8 million in 2017. Its net loss in 2018 was C$13.9 million, compared to $7.5 million in 2017.
During the fourth quarter, the company produced 201 barrels of crude oil per day, up from 146 barrels of crude oil per day in the same period a year ago.
Its 4Q production of natural gas clocked in at 3,266mln cubic feet (mcf) per day, up from 2,771mln cubic feet in 4Q 2017.
In terms of barrels of oil equivalent (boe) per day, the total was 745 for the fourth quarter.
Rex play compelling
Point Loma recently unveiled its 2018 end-of-year reserves update, which notably showed total proved plus probable oil reserves had increased 92% year-over-year.
Wizard Lake HZ 16-17-48-27W4 Rex oil pool well in Alberta showed a top tier flow test at more than 90% oil, the junior oiler noted.
It tested at rates of more than 300 bpd (barrels per day) of oil with increasing oil cuts through the end of the testing period, which has led to substantial reserve bookings for the pool net to Point Loma.
Point Loma shares were at C$0.18 on Wednesday.
Contact Katie Lewis at [email protected]