CALGARY, AB / ACCESSWIRE / November 26, 2018 / Point Loma Resources Ltd. (TSX-V: PLX) (the “Corporation” or “Point Loma”) is pleased to announce the spudding of the Corporation’s recently captured Rex oil opportunity. Additional highlights from recently released third quarter results are also noted below and full results are available on SEDAR.
- Rex oil horizontal was spudded November 24. Once drilled, the well is expected to be completed and evaluated prior to year-end.
- Point Loma as operator and Salt Bush Energy as its joint venture partner are together initiating this drilling operation.
- This target has the potential to significantly increase current oil and ngl production, enhance the Corporation’s growing reserves base and open up new oil development opportunities for Point Loma.
- Average daily production has increased to 977 boe/d for the third quarter of 2018, representing a 61% increase compared to the three months ended September 30, 2017.
- Third quarter oil and NGL production has increased 72% compared to the three months ended September 30, 2017, and 33% from the second quarter of 2018, to 272 bbl/d.
- Net operating expenses per boe have been reduced by 36% from the second quarter of 2018, and decreased 39% compared to the three months ended September 30, 2017.
- Recently, Point Loma closed an equity financing for $3.2 million in gross cash proceeds ($2.7 net proceeds) and completed a non-core disposition for $0.3 million. The Corporation currently has no bank debt.
Rex Oil – First Horizontal Spud on Recently Captured Lands
The Rex target at Wizard Lake will be the first horizontal well drilled in the multi-well program and is analogous to the offsetting Leduc area Rex production which has attracted the attention of other key industry operators. Recent activity by other operators in the area has resulted in highly commercial wells (250-300 boepd, 80% oil) as this large oil discovery continues to be exploited. The target zone on the Point Loma lands is thicker and has similar porosity to the offset development. Point Loma intends to drill a 1,300 metre lateral with 30+ completion ports. Internal mapping indicates a potential pool size of approximately 40 to 60 million barrels of original oil in place (‘OOIP’). This would result in 15 to 20 follow up opportunities with success.
About Point Loma
Point Loma is a public oil and gas exploration and development company focused on conventional and unconventional oil and gas reservoirs in west central Alberta. The Corporation controls over 160,000 net acres (250 net sections) and has a deep inventory of oil opportunities in the Mannville (Upper and Lower), Banff, Nordegg, and Duvernay Shale formations. 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, 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.