Point Loma Resources Ltd. (TSX VENTURE: PLX) (the “Corporation” or “Point Loma”) is pleased to announce the spudding of the first farmout well of the Corporation’s recently announced two well farmout program with partner Salt Bush Energy Ltd. (“Salt Bush”).
- Rex oil horizontal was spudded July 27, 2019. Once drilled, the well is expected to be completed and evaluated prior to the end of August 2019.
- Salt Bush Energy is paying 100% of the costs to drill, complete and equip to earn a 75% working interest before payout (“BPO”) and a 40% working interest after payout (“APO”).
- This target has the potential to increase current oil and ngl production, enhance the Corporation’s reserves base and open up new oil development opportunities for Point Loma.
- Point Loma will have a 25% working interest BPO and a 60% working interest APO.
- Salt Bush has the option to drill a second earning well prior to December 31, 2019, paying 100% of the costs to drill, complete and equip to earn a 75% working interest in the well BPO and 50% working interest APO.
Rex Oil- First Horizontal Farmout Well Spuds on Wizard Lake Lands
As previously announced May 30, 2019, Point Loma has entered into a 2 well farmout program with partner Salt Bush that would result in two delineation wells drilled into the Rex oil pool prior to December 31, 2019. After the completion of the earning, Point Loma and Salt Bush would each have a 50% working interest in the Wizard Lake lands. One of the two wells will be an extended reach horizontal which will add to the understanding of the deliverability of such wells and the optimization of development of the pool.
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 150,000 net acres (230 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.
For further information, please contact:
President and CEO
Telephone: (403) 705-5051 ext. 444
VP Finance and CFO
Telephone: (403) 705-5051 ext. 443