CALGARY, Alberta, Oct. 11, 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 fairway’s of west central Alberta is pleased to announce recent and planned future production additions and an update of core area activities.
Fourth Quarter Outlook
In the fourth quarter of 2017, the Corporation will be activating many previously non-producing properties and looking to increase the product weighting towards oil and NGL’s. Point Loma has been preparing for these increases through the summer months after the closing of two financings in May and June of 2017. These additions should advance the Corporation to the next level of its growth curve and provide a shift into a positive cash generating position.
Thorsby Area, Twp 49 Rge 1W5: Upcoming Horizontal Completion and Test on Newly Drilled Mannville Play Targeting Sparky Oil
Point Loma has drilled and cased a horizontal Sparky oil well in the area where a completion (multi-stage frac and test) is planned for mid-October. Once 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 in section 18-49-1W5. The two wells will flow to an area operator’s facility as a combined emulsion line. Upon commencement of production these wells are expected to establish Point Loma in the area and provide a base for potential future development of an additional four to six horizontal drilling opportunities on existing lands. Production is anticipated to commence in early November 2017.
West Cove Area, Twp 55, Rge 6W5: Targeting Oil in the Nordegg and Banff Plays
The 5-31-55-6W5 well was placed on production October 1, 2017 and Point Loma is working to stabilize the run time on the well as the gas and fluid combination is now produced as a pumping oil well. As announced previously (September 18, 2017), this production is from the upper Nordegg zone which is viewed as prospective for future horizontal oil development opportunities. The well pad is configured for two additional wells that would produce through the existing pipeline which will enhance the economics of the future wells. Point Loma also controls the surrounding lands which could lead to a larger development opportunity. Point Loma is currently evaluating the potential of using 3D seismic to further delineate the pool and assist in delineating a potential Banff oil target underlying the Nordegg discovery. Point Loma recently added eight sections of land on the Banff prospect at a Crown land sale.
Paddle River Area, Twp 55/56 Rge 7W5: Ongoing Horizontal Development in the Mannville Ostracod A Pool
The Corporation recently drilled a horizontal lateral development well into the Ostracod A pool that is currently the focus of Point Loma production in the area. As expected, the lateral encountered reservoir and oil shows to a total measured depth of approximately 2800meters. During casing operations, the well encountered tight sections that ultimately required the lateral to be cemented back to 1,300 meters depth. Point Loma is now planning to side track and re-drill the identified oil pay zone once a full operational review is completed.
In addition, the Corporation anticipates that the previously announced acquired horizontal oil well 12-4-56-7W5 will be transferred and placed on production in mid-October. The 12-4 well was drilled, completed and tied-in in 2014 and not placed on production due to area facility constraints at the time that have now been resolved. Point Loma believes the well should perform at the upper end of the horizontal wells drilled into the Ostracod A pool to date. Point Loma will also explore re-activation or re-entry of the second well purchased in the transaction for further production additions. Two incremental horizontal drilling opportunities are also supported on the land acquired.
Thornbury Area, Twp 79-81, Rges 13-15W4: Files Development Plan to Tie-in and Reactivate Existing Wells in First Quarter 2018
The Corporation has filed a development plan to undertake pipelining and reconnection of multiple wells in the Thornbury area during the first quarter of 2018. Capital investment of approximately $360,000 is required to reconnect approximately 2.0 mmcfd (1.6 mmcfd net) of natural gas into Point Loma operated facilities. The result will be an increase in area netbacks and projected cash flow. 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.
“The combined results of these activities in multiple areas should not only result in a step change of increased production but will lead to a higher liquids weighting for Point Loma.” said Terry Meek, President and CEO of Point Loma. “Recent activity and targeted land purchases also add to our deep inventory of opportunities that position the Corporation for continued growth in the coming years.”
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.
For further information, please contact:
President and CEO
Telephone: (403) 705-5051 ext. 444
Executive Vice President, Business Development
Telephone: (403) 705-5051 ext. 440
Vice President Finance and CFO
Telephone: (403) 705-5051 ext. 443