CALGARY, June 11, 2019 /CNW/ – Pulse Oil Corp. (“Pulse” or the “Company”) (TSX-V: PUL and PUL.WT) is pleased to announce the key findings of Pulse’s enhanced oil recovery (“EOR”) study.
Schlumberger Canada Ltd, one of the world’s leading providers of technology for reservoir characterization, drilling, production, and processing to the oil and gas industry, was awarded the contracts to complete all three phases of the Company’s petrotechnical modelling of the Bigoray Nisku D and E Pools, prior to physical implementation of the EOR schemes.
The three phases of Pulse’s EOR study were defined as:
Geological and Geophysical Modelling
The EOR study has an effective date of March 2019 and the key factors and the conclusions from the EOR study are as follows:
- The three phases of the EOR study, conducted by Schlumberger Canada Ltd. are the first ever 3-dimensional analysis on the Nisku D & E pinnacle reefs.
- The reservoir simulation conducted as part of the EOR study included over 200 separate computer iterations of historical production, adjusting the geo-model after every iteration to ensure the model was as accurate as possible based on historical production and modern 3-D interpretations, before beginning the solvent flood forecast.
- The detailed simulation allowed the team to model the most effective positioning of solvent injectors, pressures and rates of injected fluids and optimum production take-points to maximise ultimate recovery from these established pools.
- The go-forward simulation under the EOR program resulted in a peak estimated Nisku D-Pool production rate of approximately 2,000 barrels of oil/day, with peak production, including Nisku E production increasing to approximately 3,000 barrels of oil/d If the Nisku D-Pool was implemented first and Nisku E-Pool was started 3 years after.
- This production simulation was prepared, at Pulse’s request, to assume the EOR program is instituted on the Nisku D pool solely at first, in order for Pulse to preserve working capital and begin generating cash flow prior to funding the Nisku E program.
- Pulse, subject to having sufficient working capital, has the option to accelerate the EOR program and initiate the Nisku E Pool EOR program in conjunction with the D pool. As a result of this work to date, Pulse estimates that the simultaneous implementation of both pools results in peak forecast rates of approximately 5,000 barrels/day.
- Forecast production would peak within two years of implementation of the EOR program and will continue on primary solvent flood production for approximately ten years, followed by a production “blow-down” period that is estimated to continue for another ten and up to 20 years with proper oil field management.
Drew Cadenhead, Pulse President and COO, commented, “Using modern 3-D seismic and cutting edge digital visualisation software is a first for these 40-year old pools. The resultant increase in Discovered Petroleum Initially In Place led to a significant increase to our internal forecasts for potential recoveries from our two pools. Adding these types of growth opportunities with very little/no exploration risk fits the Pulse game plan perfectly. These are different times in our industry, and we feel low-risk value creation is key for start-ups like ourselves to prosper.”
About Pulse Oil Corp.
Pulse is a debt-free, Canadian company incorporated under the Business Corporations Act (Alberta) that is focused on methodically, safely, yet aggressively making progress to increase production and reserves in the Queenstown and Bigoray acreages it holds 100% interests in. In addition, Pulse is advancing its Bigoray EOR program and new drilling efforts 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 in the Queenstown area of southern Alberta. Pulse is moving forward to grow production and execute an EOR 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 potentially 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 EOR techniques and implementation of technology.