Calgary, Alberta (FSCwire) – Point Loma Resources Ltd. (TSX VENTURE: PLX) (the “Corporation” or “Point Loma”) is pleased to provide an update on its recent and upcoming activities;
Highlights:
- Production has grown to over 1000 boepd with an increase of approximately 90% of oil and ngl volumes from Q1 2018;
- Q1-2018 3D seismic program and trade data merger covers an area of approximately 35 square km including the Corporation’s West Cove lands;
- Analysis of the data has identified new oil drilling opportunities in the Banff zone in addition to delineation of the 5-31-55-6W5 Nordegg discovery well;
- Multiple reductions in field operating costs are resulting in higher netbacks; and
- Duvernay activity is increasing offsetting Point Loma land holdings.
West Cove 3D
The 3D program was designed to define to evaluate a stacked Banff oil target identified as bypass potential in area wells, as well as quantify the extent of the Nordegg oil and gas accumulation discovered at the 5-31 well). Figure 1 illustrates the significant offsetting production from the Banff (and Nordegg) pools in the area of the merged 3D data.
The data evaluated in combination with well information has identified an exciting oil exploration opportunity on company lands. The lead well, 8-11-56 -7W5, has strong indications of bypass hydrocarbon (oil) in the Banff zone.
Figure 1: Productive Banff fairway
To view the graphic in its original size, please click here
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Current production
Point Loma’s current production is now in excess of 1000 boepd, comprised of approximately 27% oil and ngl’s (90% increase in oil and ngl volumes from Q1 2018). Production has been restricted by a further 200 boepd as certain natural gas wells were shut-in for the summer period while natural gas prices are at low levels. The Corporation intends to reactivate this production as natural gas prices return to higher levels. The shut in volumes are part of the ongoing effort to reduce overall operating costs per unit and improve netbacks.
Duvernay
The west basin Duvernay play continues to evolve in the area surrounding Point Loma’s land base. Four wells have been drilled and five more have been licensed in the area by industry operators. Three wells are currently producing from the Duvernay in the west basin. The Corporation is reviewing options to capitalize on the value of its lands.
Corporate Presentation
Point Loma has updated the Corporate presentation on their website at www.pointloma.ca
“Point Loma continues to add to our oil drilling opportunities with the potential identified in this 3D seismic program.” said Terry Meek, President and CEO of Point Loma. “The multiple oil pay zones in our core area provide competitive drilling opportunities to further increase our oil weighting in a rising commodity environment.”
About Point Loma
Point Loma is a public oil and gas exploration and development company focused on conventional oil and gas reservoirs in west central Alberta. The Company controls over 160,000 net acres (250 net sections) and has a deep inventory of opportunities in the Mannville, Nordegg, Banff 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.