CALGARY, AB–(Marketwired – January 09, 2017) – Point Loma Resources Ltd. (TSX VENTURE: PLX) (the “Corporation” or “Point Loma“) is pleased to provide the following operational update;
- Tie-in of 5-31-55-6W5M Nordegg new pool discovery well is complete and production commenced on December 22, 2016.
- Point Loma achieved an average production rate of 570 boe/d during the period of December 24-31, 2016. The composition of the production was 58 percent oil and NGLs.
- Two existing wells were down during this time period and Point Loma is also continuing optimization of the existing base production.
- This higher than forecast production mix of liquids versus natural gas will yield improved netbacks for Point Loma.
- Point Loma is continuing with the tie-in plans for the Thorsby 11-18-49-1W5M Glauconitic well in early 2017. An initial producing rate of approximately 100 boe/d is expected.
- The Corporation is working to re-activate previously suspended production of approximately 120 boe/d in the Leaman area through existing infrastructure.
- Point Loma intends to initiate drilling operations in the first half of 2017 which will begin the evaluation of our significant horizontal drilling inventory.
Point Loma has achieved another step in production increases with the tie-in of the 5-31 Nordegg well which will set up additional development drilling in the West Cove area of central Alberta. Point Loma is continuing to optimize the production from the 5-31 well as there are significant gas and fluid volumes being produced. This will be an ongoing process during the early production stages.
In the legacy operating areas, Point Loma was challenged with mechanical operational issues that have resulted in unexpected downtime. November weather further impacted operations with soft field conditions and then suddenly extreme cold temperatures made for a challenging environment to re-activate wells that encountered mechanical issues. The Corporation had the majority of wells back on production by the end of December and are working to get the balance on production in the month of January. While most wells have returned to production not all have returned to anticipated levels. Several of these wells may be capable of delivering increased production.
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.