CALGARY, Jan. 30, 2019 /CNW/ – Pulse Oil Corp. (“Pulse” or the “Company”) (TSX-V: PUL and PUL.WT) is pleased to provide the following operational update, including information on new well drilling results from the Company’s Queenstownproperty as well as a re-activation / EOR implementation update from Pulse’s Bigoray property.
Queenstown: As reported Dec 18th, 2018 and Jan 2nd, 2019, Pulse recently completed the drilling and fracture stimulation of the Company’s first two new wells. The wells targeted newly defined 3-D seismic lithic sandstone channels, which are the highest quality reservoirs within the Mannville Channel play of Southern Alberta. The two wells drilled 1200m and 1276m of horizontal lithic channel play and were fracked with 15 and 18 stages, respectively. All fracks were placed successfully and flowback of frack fluid and hydrocarbons were initiated immediately using a service rig. Once enough frack fluid had either been pumped or flowed naturally from the two wells (approximately 15% of total frack fluid pumped), and oil cuts had climbed steadily to approximately 25-35%, the decision was made to shut the wells in and begin permanent facility and pipeline construction immediately to prepare the wells for fulltime production. Based on regulatory timeline requirements for approvals of pipelines Pulse estimates we should have both wells on full time production in late Q1 2019 to early Q2 2019.
Pulse President, Drew Cadenhead, commented, “We are encouraged with the initial testing results of our first two wells. We have drilled over 2 km of quality reservoir rock between the two wells, and initial rates of completion fluid flowback and consistently rising oil cuts encouraged the experienced Pulse team to save any further testing costs by investing those dollars straight into permanent production equipment. We have a short pipeline tie-in (<2km) to a production facility that can handle all our fluids, including the rest of the completion fluids, and we expect to transition from completion fluid recovery to hydrocarbon production within a few weeks after construction is complete.”
Bigoray: As reported Nov 28th, 2018, Pulse’s contracted technical consultants have completed Phase Two of the Bigoray Enhanced Oil Recovery (EOR) Modelling Project and have now simulated various solvent injection scenarios as part of the final Phase (Phase III) of the project due for completion shortly. The detailed Phase II work by Pulse’s independent EOR contractor, as well as Pulse’s internal qualified reserve evaluators, has led to an increase of 43.9% of the previously disclosed best estimate for discovered petroleum initially in-place (“DPIIP”) prepared by Sproule Associates Limited (“Sproule”), an independent qualified reserves evaluator, with an effective date of December 6, 2017. Included in this increase are newly identified reservoir areas surrounding the two Nisku pools which were likely unaffected by the primary waterflood production scheme.
Pulse President, Drew Cadenhead, commented “We are excited by the results of our geotechnical modelling project to date. With the new geotechnical data we now have, our recent financing in place, and the anticipated growing cash flow from our successful Queenstown wells, we can now accelerate the EOR implementation and combine the permanent EOR facility work, new injection well drilling and re-activation of existing production wells into a single project. This operational field work is now underway and scheduled for completion by the time final regulatory approval for the EOR is granted later this year.”
About Pulse Oil Corp.
Pulse is a debt-free, Canadian company incorporated under the Business Corporations Act (Alberta) that is fully funded for its next year of operations including the Bigoray EOR program and drilling in Queenstown. Pulse owns 100% interests in the Bigoray area of Alberta, which includes two Nisku oil Pinnacle Reefs as well as 100% interests in producing assets. Pulse is moving forward to grow production and execute an Enhanced Oil Recovery project to unlock significant value for shareholders through control of approximately 65 net sections of land across the Mannville, Cardium, Pekisko/Shunda, Nisku and Duvernay Shale trends in Western Canada. Pulse will also continue to focus on acquiring affordable, small to medium sized proven oil and gas assets with significant upside. The Company plans to achieve further growth through low-risk, technically diligent drilling within its Queenstown assets, infrastructure ownership and reserve growth utilizing proven enhanced oil recovery techniques and implementation of technology.