Point Loma Resources Ltd. (TSX VENTURE:PLX) (the “Corporation” or “Point Loma”) is pleased to announce the Wizard Lake HZ 1-8-48-27W4 Rex well has been successfully drilled and cased, on schedule and on budget. This is the first of two wells in a farmout program with Salt Bush Energy Ltd (“Salt Bush”).
- Well was successfully drilled from the existing 16-17Hz padsite to 3033m measured depth with a 1461m lateral section.
- Excellent reservoir quality was encountered throughout the lateral section with oil shows, porosities and gas readings exceeding those recorded in the original 16-17Hz discovery well.
- The 1-8Hz lateral length is 20% longer than the discovery well 16-17Hz.
- 35 frac sleeves were cemented into the wellbore which represents a 30% increase from the previous well.
- Completion will commence in mid-August and the well will be put on production immediately thereafter.
Wizard Lake Farm-out
As previously announced May 30, 2019, Point Loma has entered into a 2 well farm-out program with 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. A total of approximately $5 million of gross capital would be spent on the two well farm-out to delineate the pool at no cost to Point Loma.
1-8 Rex Hz – Overview
The 1-8Hz well has been successfully drilled and cased and is scheduled for completion in mid-August. Excellent reservoir was encountered throughout the lateral with oil shows, porosities and gas readings exceeding those recorded in the original 16-17Hz discovery well. The 1-8Hz well was 20% longer than the 16-17Hz well and the completion will incorporate additional frac ports.
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 to employ horizontal multi-stage frac technology and to 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.