Point Loma Resources Ltd. (TSXV:PLX) (“Point Loma” or the “Corporation“) is pleased to announce the upcoming drilling of the second delineation well at Wizard Lake and the expansion of production facilities.
- Partner Salt Bush Energy Ltd. (“Salt Bush“) has elected to drill the second farm-out well under the Wizard Lake farm-out agreement and intends to spud the HZ 13-4-48-27W4 well in mid-November.
- Salt Bush will incur 100% of the costs to drill, complete and equip the 13-4 well with Point Loma retaining a 25% working interest before payout and 50% after payout.
- The production facilities will be expanded to handle a capacity of 5,000 bpd of fluid and 5 mmcfd of natural gas, which is expected to allow for full production of the first two wells drilled, the second farm-out well and future development.
- Point Loma and Salt Bush control 4,570 acres in the area.
- The HZ 13-4-48-27W4 well will be an extended reach horizontal with a longer horizontal lateral length than the previously drilled Wizard Lake HZ 1-8-48-27W4 well. The well is planned for a 1820m lateral and 45 frac stages versus the 1500m and 35 frac stages of the 1-8 well. Based on offsetting area activity in the Rex oil play, the utilization of extended reach horizontal technology has led to higher oil production rates and larger reserve bookings per well than those wells with standard horizontal lateral lengths.
To date, the first two wells drilled into the Rex oil pool have exhibited excellent deliverability on test but have been restricted on production flow rates due to facility limitations. The new facilities will eliminate the production restrictions and, coupled with the upcoming new well, provide an opportunity to demonstrate the potential of full field development.
“This additional delineation well should further extend a top tier oil pool that is expected to add to the oil component of our production base, enhance the Corporation’s oil reserves and strategically position Point Loma as the Rex oil play continues to evolve in the area and across Point Loma’s large land position,” said Terry Meek, President and CEO of Point Loma. “Point Loma is excited to commence these operations and looks forward to unlocking additional value on this oil property.”
Next steps to advance the Rex oil pool will be to place the existing two wells and the soon to be drilled new well on production to the expanded facilities. These operations are anticipated to be completed prior to year end. Current landholdings of the Corporation support the potential for 16-20 (gross) additional drilling opportunities based on internal mapping and projected well spacing.
Point Loma maintains an extensive inventory of additional opportunities identified through analysis of historical penetrations that are indicative of bypassed oil pay on its lands. A description of the Corporation’s other oil pool development opportunities can be found in the corporate presentation on the Point Loma website at www.pointloma.ca.
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 140,000 net acres (220 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.