CALGARY, Alberta, Nov. 09, 2017 (GLOBE NEWSWIRE) — Point Loma Resources Ltd. (TSX VENTURE:PLX) (the “Corporation” or “Point Loma”) which has captured over 160,000 net acres across the multi-zone Mannville, Nordegg and Banff fairways of west central Alberta is pleased to announce recent land acquisitions and an update of core area activities.
Paddle River Area, Townships 55 and 56 Range 7W5: Well transfers completed, production to commence and further consolidation of area lands
Further to the recently announced acquisition of horizontal well bores on section 4-56-7W5, the transfer of the two wells has been approved and Point Loma anticipates that production will begin in mid-November for the 12-4-56-7W5 Ostracod well. This well is in an updip position in the pool and has never been on production.
In addition, the Corporation has entered into agreements to consolidate the area land positions of Point Loma to 80 percent working interest in the Paddle River Ostracod pool. The addition of these lands adds to the existing development inventory in Point Loma’s core production area.
Leaman Area, Townships 56 and 57 Ranges 8-10W5: Area plans progress
In consultation with the facility operator, Point Loma is working to coordinate the reactivation of approximately 1.5 mmcfd (net) previously producing gas volumes and approximately 80 bpd additional associated ngl’s through the deep cut facility. In addition, Point Loma has identified four recompletion candidates that should add to area production and has the potential to increase future horizontal drilling inventory in the area.
Thorsby Area, Township 49 Range 1W5: Horizontal completion and test on newly drilled Mannville play targeting Sparky oil and pipeline construction
Point Loma has recently completed the previously drilled Sparky well. The confidential well is currently on an extended flow test. Once the test is completed, it is anticipated that the Sparky well will be pipeline connected on the same surface lease as the previously drilled and tested Glauconitic well on section 18-49-1W5. The pipeline to connect to an area operator’s facility as a combined emulsion line has finished construction and production from these wells are expected to establish Point Loma in the area. These wells will potentially provide a base for future development of an additional four to six horizontal drilling opportunities on existing lands. Production is anticipated to commence in mid-November 2017.
West Cove Area, Township 55, Range 6W5: Targeting oil in the Nordegg and Banff plays
The 5-31-55-6W5 well was placed on production October 1, 2017 and initial restricted production continues to stabilize. The result confirms potential in the Nordegg zone for future development.
Point Loma is permitting a 3D seismic program to further delineate the pool and assist in delineating a potential Banff oil target underlying the Nordegg discovery.
Thornbury Area, Twp 79-81, Rges 13-15W4: Development plan to tie-in and reactivate existing wells in first quarter 2018 approved
The development plan filed by the Corporation to undertake pipelining and reconnection of multiple wells in the Thornbury area during the first quarter of 2018 has been approved by the AER. Capital investment of approximately $360,000 is required to reconnect approximately 1.2 mmcfd ( net) of natural gas into Point Loma operated facilities. The result will be an increase in area netbacks and projected cash flow. An additional 0.8 mmcfd (0.6 net) is available and approved in plan subject to capital requirements. Point Loma also has plans to abandon several wells in the area while operations are underway that is expected to ultimately reduce operating costs and liabilities.
West shale basin Duvernay land position:
Point Loma has established a 20 section (net) undeveloped land position along the west shale basin Duvernay oil window that has been the focus of recent Alberta Crown land sale activity. Point Loma will continue to evaluate offset activity in the Duvernay oil window as it relates to Corporation lands.
“These acquisitions continue to position Point Loma for significant low risk development drilling in our Paddle River core area,” said Terry Meek, President and CEO of Point Loma.
About Point Loma
Point Loma is a public oil and gas development and exploration company focused on horizontally exploiting conventional oil and gas reservoirs in west central Alberta. Point Loma’s business plan is to utilize its experience to drill, develop and acquire accretive assets with potential for horizontal multi-stage frac technology and exploit opportunities for secondary recovery. For more information and our current presentation please visit Point Loma’s website at www.pointloma.ca or Point Loma’s profile on the System for Electronic Document Analysis and Retrieval website at www.sedar.com.