CALGARY, AB–(Marketwired – August 08, 2017) – Point Loma Resources Ltd. (TSX VENTURE: PLX) (the “Corporation” or “Point Loma“) is pleased to announce the strategic acquisition of two wells and accompanying petroleum and natural gas rights in its core Paddle River Ostracod A pool.
- Point Loma (80 percent working interest) and Salt Bush Energy Ltd. (“Salt Bush”, 20 percent working interest) have acquired two wellbores and associated rights in the Paddle River Ostracod A pool;
- The 12-4-56-7W5 well was drilled in 2013 and has not been produced due to past facility constraints in the area. Production is now anticipated to begin in September 2017.
- The 2-4-56-7W5 well has cumulative production to date of 0.2 Bcf of natural gas and 4 mstb of oil and is a potential re-entry candidate into the Ostracod A pool.
- Point Loma intends to commence drilling operations in the month of August with the drilling of 2 wells in addition to the activation of the acquired 12-4 well.
The acquisition has closed into escrow and is anticipated to close within the next 30 days subject to regulatory approvals. Total deal costs to the Point Loma/Salt Bush JV are $335,000 and the wells are pipeline connected to the Corporation’s local gathering system. No reserves are currently assigned to the wells pending the initiation of production. The wells are mapped to be in the Ostracod A pool that currently produces approximately 300 boepd and has cumulative production of 500 mstb of oil and 2.7 Bcf of natural gas.
“Point Loma is pleased to add to our core position in the Paddle River Ostracod pool. The 12-4 well should add to our area production in the near term and the lands acquired will potentially provide additional drilling opportunities as well.” said Terry Meek, President and CEO of Point Loma. “Such consolidation acquisitions continue to add value to Point Loma while expanding our core position.”
Point Loma is also working with the new owners of the Paddle River gas processing facility to re-activate previously suspended wells in the area and will provide more details once plans are finalized.
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.