CALGARY, Jan. 21, 2019 /CNW/ - Point Loma Resources Ltd.
(TSX VENTURE: PLX) (the "Corporation" or "Point
Loma") is pleased to announce production test results for
the Wizard Lake HZ 16-17-48-27W4 Rex oil pool discovery.
Highlights
- Final pumping rate for the Rex horizontal well over last 24
hours of the test period was 305 barrels per day (bpd) of oil (17
API) and 340 barrels of oil equivalent per day (boe/d) (Figure
1).
- Point Loma's share of oil production at this rate would
increase corporate oil production in excess of 100%.
- Figure 1 below illustrates generally increasing rates during
the test. The Corporation determined that commercial production has
been established and has ended the test period.
- The well recovered all load fluid during the test and
ultimately recovered an additional 3,178 barrels of fluid of which
1,847 barrels were oil for total fluid produced during the test of
18,829 barrels.
- Point Loma has a 70% working interest in the lands associated
with the well.
- Point Loma and partner Salt Bush Energy Ltd. ("Salt Bush")
control 3,385 acres gross and 2,370 acres net in the area.
- Plans are underway to tie-in and conserve solution gas
associated with the well and install production facilities. Subject
to regulatory approvals the well is anticipated to be placed on
production in second quarter of 2019.
Test Results
The test commenced December 24,
2018 and was conducted with a submersible pump to temporary
production testing facilities. The test was interrupted
December 30, 2018 to January 4, 2019 due to downhole pumping issues.
From January 4, 2019 until
January 15, 2019 the well was pumped
continuously with pumping rates varying at times as illustrated in
Figure 1 above. The well displayed excellent inflow with total
fluid rates averaging 1,123 bpd during the testing period. All load
fluid was recovered during the test period and an additional 3,178
barrels of fluid of which 1,847 barrels of oil were recovered
beyond the original load fluid. Oil cuts were trending upward
through the continuous flow period and indicate potential for
further increases in oil rates upon commencement of full time
production.
The final test rate is above average expectations of the
Corporation and would increase Point Loma's oil production in
excess of 100% (Current approximately 145 bopd, potential increase
with test rate to 300-350 bpd net).
"This discovery appears to be a top tier oil pool that could add
a large oil component to our production base, enhance the company's
oil reserves and strategically position Point Loma as the Rex oil
play continues to evolve in the area." said Terry Meek, President and CEO of Point Loma.
"Point Loma is excited to post this new pool result and looks
forward to unlocking this significant oil opportunity for its
shareholders."
Next steps to advance the Rex oil pool will be to tie-in the
solution gas to a nearby gas processing facility and install a
single well battery. Work related to these activities is already
underway. Current landholding of the Corporation support the
potential for 10-14 (gross) additional drilling opportunities based
on internal mapping and projected well spacing.
Point Loma plans to release its updated year end reserves in the
coming weeks and looks forward to taking further steps to unlock
additional value for shareholders on this exciting new oil
play.
Background
The Wizard Lake Rex well was spudded on November 24, 2018 and rig released December 2, 2018 (nine days inclusive). The
well intersected a continuous Rex reservoir section from the casing
shoe to the toe with predominately good quality reservoir
accompanied by excellent oil shows (fluorescence and cut) and
elevated gas readings. Following a 28 stage fracture
stimulation program, the well commenced a cleanup test on
December 24, 2018.
The Rex target at Wizard Lake is the first horizontal well to be
drilled in what could be a multi-well program analogous to the
offsetting Leduc area Rex
development. Recent activity in the area has resulted in highly
commercial wells (250-300 boepd, 80% oil, 16-17 API). The target
zone in the Corporation's lands has similar porosity but is thicker
than at the Leduc area. Recent
area offsets have been drilled to lateral horizontal lengths of
approximately1800m versus the Wizard Lake HZ 16-17-48-24W4 at
approximately 1200m lateral length
which further illustrates the superior reservoir quality of the
Point Loma discovery.
Point Loma maintains an extensive inventory of additional
opportunities identified in similar fashion through analysis of
historical penetrations on the lands that are indicative of
bypassed oil pay. A description of the Corporation's other top tier
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 160,000
net acres (250 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.
A Note Regarding Forward-Looking Information
This press release contains forward-looking statements and
forward-looking information within the meaning of applicable
securities laws, including without limitation, statements
pertaining to expectations as to production and future
potential production increases; the expected timing of tie-ins and
the installation of production facilities; additional drilling
opportunities identified by the Corporation; and the focus of Point
Loma's management team and go-forward strategy.
The use of any of the words "will", "expects", "believe",
"plans", "potential" and similar expressions are intended to
identify forward-looking statements or information. Although Point
Loma believes that the expectations and assumptions on which such
forward-looking statements and information are based are
reasonable, undue reliance should not be placed on the
forward-looking statements and information because Point Loma
cannot give assurance that they will prove to be correct.
Since forward-looking statements and information address
future events and conditions, by their very nature they involve
inherent risks and uncertainties. Actual results could differ
materially from those currently anticipated due to a number of
factors and risks. These include, but are not limited, the risks
associated with the oil and gas industry in general such as
operational risks in development, exploration and production;
delays or changes in plans with respect to exploration or
development projects or capital expenditures; the uncertainty of
reserve and resource estimates; the inability of Point Loma to
bring additional production on stream or in the anticipated
quantities disclosed herein; the uncertainty of estimates and
projections relating to reserves, resources, production, costs and
expenses; health, safety and environmental risks; commodity price
and exchange rate fluctuations; marketing and transportation; loss
of markets; environmental risks; competition; incorrect assessment
of the value of acquisitions; failure to realize the anticipated
benefits of acquisitions; ability to access sufficient capital from
internal and external sources; changes in legislation, including
but not limited to tax laws, royalties and environmental
regulations, actual production from the acquired assets may be
greater or less than estimates. Management has included the above
summary of assumptions and risks related to forward-looking
information provided in this press release in order to provide
security holders with a more complete perspective on Point Loma's
future operations and such information may not be appropriate for
other purposes.
The forward-looking statements and information contained in
this press release are made as of the date hereof and Point Loma
does not undertake any obligation to update publicly or revise any
forward-looking statements or information, whether as a result of
new information, future events or otherwise, unless so required by
applicable securities laws.
Oil and Gas Information
"BOEs" may be misleading, particularly if used in isolation.
A BOE conversion ratio of six thousand cubic feet of natural gas to
one barrel of oil equivalent (6 Mcf: 1 bbl) is based on an energy
equivalency conversion method primarily applicable at the burner
tip and does not represent a value equivalency at the wellhead. As
the value ratio between natural gas and crude oil based on the
current prices of natural gas and crude oil is significantly
different from the energy equivalency of 6:1, utilizing a
conversion on a 6:1 basis may be misleading as an indication of
value.
Well test results should be considered as preliminary.
Neither a pressure transient analysis nor a well-test
interpretation has been carried out on the well test data contained
herein and therefore the data contained herein should be considered
to be preliminary until such analysis or interpretation has been
done. There is no representation by the Corporation that the
disclosed well results included in this news release are
necessarily indicative of long term performance or recovery. As a
result, readers are cautioned not to place reliance on such rates
in calculating the aggregate production for the Corporation or that
such rates are indicative of future performance of the
well.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/point-loma-resources-announces-successful-new-pool-rex-oil-discovery-300781368.html
SOURCE Point Loma Resources Ltd.
