Proactiveinvestors Australia Point Loma Resources https://www.proactiveinvestors.com.au Proactiveinvestors Australia Point Loma Resources RSS feed en Sun, 21 Jul 2019 08:06:15 +1000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[Media files - Point Loma Resources acquisition increases oil and liquid production by 70% ]]> https://www.proactiveinvestors.com.au/companies/stocktube/9184/point-loma-resources-acquisition-increases-oil-and-liquid-production-by-70-9184.html Tue, 01 May 2018 15:47:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/9184/point-loma-resources-acquisition-increases-oil-and-liquid-production-by-70-9184.html <![CDATA[News - Point Loma completes acquisition of oil and gas assets from company in receivership ]]> https://www.proactiveinvestors.com.au/companies/news/196182/point-loma-completes-acquisition-of-oil-and-gas-assets-from-company-in-receivership-196182.html Point Loma Resources Ltd (CVE:PLX) has completed the acquisition of oil and gas assets from a private oil and gas company that is in receivership.

After closing adjustments, the net purchase price of the acquisition was in the region of C$779,000 for Point Loma’s 70% working interest share of the assets, which are in the west central area of Alberta, adjoining Point Loma's existing area of focus.

READ: Point Loma gushes higher as it's set for production boost with new acquisition​

The assets produce around 450 barrels of oil equivalent per day (boepd), or 315 boepd net to Point Loma, consisting of 35% oil and natural gas liquids.

The acquisition had total proved reserves of 2.6mln boe (1.9mln net) and a total proved reserve net present value, discounted at 10%, of C$8.9mln (C$6.2mln net).

Point Loma said the acquisition has an estimated net operating income of C$840,000 (C$595,000 net).

In a brief operational update, the company said the Thornbury project area is now complete and the company's production currently exceeds 1,000 boepd.

Further natural gas liquid (NGL) production gains are expected as Point Loma completes work to reroute existing production volumes and reactivate previously suspended volumes to a deep cut facility in the Paddle River area.

The initial component of the project is anticipated to be completed in May 2018 for a potential increase of around 40 bpd of NGLs with additional new volumes restarting later in the year with accompanying NGL production.

Point Loma will also continue to evaluate all producing wells for economic health during projected low natural gas prices in the summer months of 2018. This may result in some temporarily reduced production volumes, particularly natural gas, that can resume as prices increase, the company advised investors.

“This is another accretive acquisition in our core area that will expand our opportunity base,” said Terry Meek, the president and chief executive officer of Point Loma.

“As we continue forward in challenging times we feel the base we are accumulating will position us for excellent growth in the future,” he added.

Broker Mackie Research reiterated its 'buy' recommendation, saying that, based on the purchase price, the company is paying roughly 1.1 times the net operating income.

“The assets have development upside with ~29,000 gross acres (12,900 net) of undeveloped land and over 130 km of proprietary seismic, with booked proven undeveloped and probable drilling locations with multi-zone potential in the Mannville, Cardium and Duvernay shale,” the broker noted.

The broker liked what it called “excellent acquisition metrics”, saying: “Net proven reserves of 1.1 million boe were acquired for just $0.73/boe and 2P [proved plus probable] reserves of 2.9 million boe were acquired for just $0.27/boe.”

Shares in Point Loma were trading 2.1% higher at C$0.24. Mackie has a target price of C$1.10.

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Tue, 01 May 2018 13:43:00 +1000 https://www.proactiveinvestors.com.au/companies/news/196182/point-loma-completes-acquisition-of-oil-and-gas-assets-from-company-in-receivership-196182.html
<![CDATA[News - Point Loma Resources has 'multi-bagger' upside, says Mackie after reserve report ]]> https://www.proactiveinvestors.com.au/companies/news/193409/point-loma-resources-has-multi-bagger-upside-says-mackie-after-reserve-report-193409.html Broker Mackie has hailed the latest reserve update from Alberta-focused oil producer Point Loma Resources (CVE:PLX), a company, which it says has "multi-bagger" upside and which it rates a 'buy'.

Analyst Bill Newman notes the company has a reserve value of C$41.3mln against a market cap of only C$12.7mln.

Earlier the firm said total proved plus probable (2P) reserves had been put at the end of 2017 at 4.452 mboe (million barrels of oil equivalent) and proved (1P) reserves were 3.5 million barrels - an increase of 119% and 128%, respectively, since the end of 2016.

The new reserve report  was carried out by McDaniel and Associates Ltd.

Gilby transaction..

Point Loma said that an estimated net present value discounted at 10% for the group, upon closing the recently announced Gilby transaction, as of December 31, 2017, would be C$41.3mln (or C$0.75 a share) based on 2P reserves and C$26.6 million on 1P reserves.

Analyst Newman notes that  at the current market share price of C$0.23, the oiler is trading at a 32% of its 2P valuation.

As reported on March 1 this year, PLX  announced a deal to buy, in joint venture with Salt Bush Energy, a private oil and gas company involved in a receivership process.

This is known as the acquisition of oil and gas assets in the Gilby area, and Newman points out that Point Loma paid an opportunistic bargain price of only C$0.45 per boe for 2P reserves.

"The effective date of the Gilby acquisition is November 1, 2017, and the transaction is expected to close later this month. The estimated net reserves of the Gilby asset, as at December 31st, 2017, include 2.9 million boe of 2P reserves, with a NPV-10 value of C$10.8 million. This is a highly accretive acquisition given PLX only paid $1.33 million net," says the broker.

"Point Loma acquires net production of 315 boe/d at a cost of just $4,127 per flowing barrel," it adds.

Mackie reckons the firm had production of around 550 boe/d in November last year and the

Gilby adds 315 boe/d, reckons Mackie..

Gilby acquisition adds 315 boe/d taking corporate production to around 865 boe/d. 

The firm also plans to reactivate 15 to 17 wells in the Thornbury area which is expected to add 1.2 mmcf/d (200 boe/d).

PLX is also working on re-activating 15 to 20 wells in the Leaman/Paddle River area, which is expected to add net production of around 1.5 mmcf/d plus 100 bbl/d of NGL’s (natural gas liquids) (around 350 boe/d).

"The acquisition plus low risk reactivations could increase corporate production to around 1,415 boe/d in the near term," says Newman.

In addition, notes the analyst, the firm plans to drill two horizontal wells in 2018 which could increase production to around 1,815 boe/d.

"PLX is highly undervalued and has a large concentrated land base with a large, multizoned drilling inventory to fuel rapid growth for many years. PLX has no bank debt and positive working capital to fund low risk well recompletions, facilities expansion and drilling that should double production in H2/18," says Newman.

Point Loma shares in Toronto added 4.35% to C$0.24.

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Mon, 19 Mar 2018 14:51:00 +1100 https://www.proactiveinvestors.com.au/companies/news/193409/point-loma-resources-has-multi-bagger-upside-says-mackie-after-reserve-report-193409.html
<![CDATA[News - Point Loma gushes higher as it's set for production boost with new acquisition ]]> https://www.proactiveinvestors.com.au/companies/news/192459/point-loma-gushes-higher-as-it-s-set-for-production-boost-with-new-acquisition-192459.html Alberta-focused oiler Point Loma Resources Ltd (CVE:PLX) has increased its production profile as it's set to buy a private oil and gas company involved in a receivership process.

The deal and price is expected to  be finalised in March this year, subject to court and regulatory approvals.

It adds production of around 450 barrels of oil equivalent per day (boe/d), comprising 35% oil and natural gas liquids, and adds around 29,000 acres (18,000 net) land in Point Loma's core area of west-central Alberta with an average working interest of 62%.

The property acquired had 2017 estimated net operating income of C$1.3mln

The acquisition has a liability management ratio (LMR) of 3.4, comprising deemed assets of C$11.5mln and deemed liabilities of C$3.4mln.

Expands growth in core area..

"This acquisition adds to Point Loma's production and further expands growth of our core area," said Terry Meek, president and chief executive of Point Loma.

"Multizone opportunities in the acquisition include Mannville, Cardium and Duvernay.

"Value acquisitions such as this continue to solidify a strong base of operations and expand the opportunity base in the corporation."

The properties include areas with proved undeveloped locations booked in addition to the base production.

The company plans to update the acquisition reserves to December 31, 2017 when the deal is closed.

Following the news, broker Mackie repeated a 'buy' stance and a target price of C$1.10 a share

Considerable reserves potential..

The deal has considerable reserves potential, the it notes.

"The acquired assets have a deemed value of C$11.5 million which is more than PLX’s current market capitalization," highlighted analyst Bill Newman.

The broker estimates the oiler had production of around 550 boe/d (barrels of oil equivalent per day) in November 2017.

"The acquisition announced today (effective November 1 2017) adds 315 boe/d taking corporate production to around 865 boe/d," it notes

In the first quarter of 2018, the firm intends to re-activate 15 to 20 wells in the Leaman/Paddle River area, which is expected to add net production of around 1.5 mmcf/d (million cubic feet per day) plus 100 bbl/d of NGL’s (natural gas liquids) (around 350 boe/d).

Point Loma also plans to re-activate 15 to 17 wells in the Thornbury area which is expected to add 1.2 mmcf/d (200 boe/d), it says.

"The acquisition plus low risk reactivations could increase corporate production to around 1,415 boe/d in Q1/18."

Mackie concludes: "PLX is highly undervalued and has a large concentrated land base with a large, multizoned drilling inventory to fuel rapid growth for many years."

The firm has no bank debt and positive working capital to fund low risk well recompletions, facilities expansion and drilling that should double production in the second half of 2018, it says.

Point Loma shares surged over 13%  in Toronto to C$0.22.

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Thu, 01 Mar 2018 11:27:00 +1100 https://www.proactiveinvestors.com.au/companies/news/192459/point-loma-gushes-higher-as-it-s-set-for-production-boost-with-new-acquisition-192459.html
<![CDATA[News - Point Loma Resources hires Hybrid for investor relations ]]> https://www.proactiveinvestors.com.au/companies/news/191027/point-loma-resources-hires-hybrid-for-investor-relations-191027.html Alberta-focused oiler Point Loma Resources Ltd (CVE:PLX) has hired Hybrid Financial Inc to specifically raise the firm's profile via brokers in the USA and Canada.

The sales and marketing company will have duties that include marketing, distribution, and branding services.

Hybrid will receive a monthly retainer of $14,000 beginning immediately.

Hybrid does not have any interest, directly or indirectly, in Point Loma or its securities, or any right or intent to acquire such an interest.

Point Loma controls over 150,000 net acres and has an inventory of opportunities in the Mannville, Nordegg, Banff and Duvernay Shale formations. 

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Thu, 01 Feb 2018 11:46:00 +1100 https://www.proactiveinvestors.com.au/companies/news/191027/point-loma-resources-hires-hybrid-for-investor-relations-191027.html
<![CDATA[News - Point Loma Resources hires new vice-president of acquisitions and development ]]> https://www.proactiveinvestors.com.au/companies/news/190324/point-loma-resources-hires-new-vice-president-of-acquisitions-and-development-190324.html Alberta-focused oil firm Point Loma Resources Ltd (CVE:PLX) has hired Troy Wagner as vice-president of acquisitions and development.

Wagner brings 25 years of diverse oil and gas experience and will enhance the company's technical depth, it said.

The oiler controls over 150,000 net acres (230 net sections) and has a deep inventory of opportunities in the Mannville, Nordegg, Banff and Duvernay Shale formations.

Last month, broker Mackie said the group was highly  undervalued, with a large land base and a drilling inventory to fuel rapid growth for many years.

The broker repeated a 'buy' stance and C$1.10 target.

Shares today are at C$0.26 each.

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Fri, 19 Jan 2018 11:00:00 +1100 https://www.proactiveinvestors.com.au/companies/news/190324/point-loma-resources-hires-new-vice-president-of-acquisitions-and-development-190324.html
<![CDATA[News - Point Loma Resources shares up as Chinese group Zhongcheng Group continues backing ]]> https://www.proactiveinvestors.com.au/companies/news/189833/point-loma-resources-shares-up-as-chinese-group-zhongcheng-group-continues-backing-189833.html Broker Mackie has repeated a 'buy' on Alberta-focused oil firm Point Loma Resources Ltd (CVE:PLX) following news yesterday that it had completed a private placing to strategic investor Evenergy Co Ltd.

Proceeds were around $753,000 and Evenergy, which first invested in the  oiler last summer,  maintained its control over 19.9% of the shares.

The cash will  be used to exploit Point Loma's deep inventory of Mannville, Nordegg, Banff and Duvernay shale opportunities and for additional accretive acquisitions.

Evenergy is subsidiary of Zhongcheng Group, one of the largest privately owned independent petroleum refinery, oil products and LPG distribution and retail companies in China

Mackie analyst Bill Newman said: "PLX is highly undervalued and has a large concentrated land base with a large, multi-zoned drilling inventory to fuel rapid growth for many years.

"PLX has no bank debt and positive working capital to fund low risk well recompletions, facilities expansion and drilling that should double production in H2/18."

The broker targets C$1.10 for the shares, which today stand at 28 cents - up 12%.

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Wed, 10 Jan 2018 14:26:00 +1100 https://www.proactiveinvestors.com.au/companies/news/189833/point-loma-resources-shares-up-as-chinese-group-zhongcheng-group-continues-backing-189833.html
<![CDATA[News - Point Loma Resources' drilling inventory to fuel growth for many years, reckons broker Mackie ]]> https://www.proactiveinvestors.com.au/companies/news/189201/point-loma-resources-drilling-inventory-to-fuel-growth-for-many-years-reckons-broker-mackie-189201.html Point Loma Resources Ltd (CVE:PLX) is highly  undervalued and has a large land base and a drilling inventory to fuel rapid growth for many years, reckon broker Mackie, which has repeated a 'buy' stance and C$1.10 target.

This week the Alberta - focused oiler outlined its planned work programme for the first half of 2018.

Then, Point Loma plans a two well program  and nine well work-overs in existing producing areas.

At the Paddle Rover asset, it has struck a letter of intent over processing and expects, on reactivating 15 to 20 wells in Leaman/Paddle River areas, in early 2018, an increase in production of around 1.5 mmcfd (million cubic feet a day) of natural gas and 100 bpd of NGL's net.

It also plans to reactivate 15-17 wells at the in the Thornbury area, expected to add 200boe/d.

"Combined with production from two planned horizontal wells, we expect production to increase to 1,500 boe/d in Q1/18," said Mackie analyst Bill Newman.

Also this week, the firm said it had raised around C$3.45mln after closing its offering of flow-through shares.

"With the completion of the equity financing, PLX has no bank debt and positive working capital to double production in H2/18," said the broker.

Shares in the firm eased around 2% to C$0.24 on the day.

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Thu, 21 Dec 2017 14:59:00 +1100 https://www.proactiveinvestors.com.au/companies/news/189201/point-loma-resources-drilling-inventory-to-fuel-growth-for-many-years-reckons-broker-mackie-189201.html
<![CDATA[News - Point Loma Resources eyeing near term uplift in output in Alberta ]]> https://www.proactiveinvestors.com.au/companies/news/189104/point-loma-resources-eyeing-near-term-uplift-in-output-in-alberta-189104.html Point Loma Resources Ltd (CVE:PLX) sees a near term uplift in production as it outlined its planned work programme for the first half of 2018.

The Alberta-focused oiler said it had now placed three new wells on production in the fourth quarter and plans to up production through the first quarter and first half of 2018.

READ - Point Loma Resources raises C$3.45mln in oversubscribed offering

Output is currently above 700 boepd (barrels of oil equivalent per day) as new wells stabilise, it told investors.

The combination of these new wells and re-activated production is expected to lift levels beyond 1,000 boepd in the first quarter 2018.

In terms of work in the first half, Point Loma plans a two well program  and nine well work-overs in existing producing areas.

At the Paddle Rover asset, it has struck a letter of intent over processing and expects, on reactivating 15 to 20 wells in Leaman/Paddle River areas, in early 2018, an increase in production of around 1.5 mmcfd (million cubic feet a day) of natural gas and 100 bpd of NGL's net.

A 3-D seismic program has also been permitted to further delineate West Cove Nordegg play and exploratory Banff play.

READ - Point Loma "substantially undervalued" compared to its nearest peers

"With no bank debt, a positive cash position and a growing production base Point Loma is well positioned for growth and sustainability in the coming quarters," said Terry Meek, the firm's president and chief executive.

"We continue to seek additional opportunities in the current market to expand our base of operations in a volatile time.

Yesterday (Monday), Point Loma revealed it had raised around C$3.45mln after closing its offering of flow-through shares.

Notably this includes more than 1.36mln shares, which were issued after the full  exercise of the over-allotment option by the agent Mackie.

As previously reported, the funds are planned to be used to drill horizontal wells and recompletion activities targeting oil in the Mannville, Nordegg or Banff shale formations as well as for exploration expenses.

Shares nudged 2.08% to C$0.24.

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Wed, 20 Dec 2017 09:18:00 +1100 https://www.proactiveinvestors.com.au/companies/news/189104/point-loma-resources-eyeing-near-term-uplift-in-output-in-alberta-189104.html
<![CDATA[News - Point Loma Resources raises C$3.45mln in oversubscribed offering ]]> https://www.proactiveinvestors.com.au/companies/news/189040/point-loma-resources-raises-c345mln-in-oversubscribed-offering-189040.html Point Loma Resources Ltd (CVE:PLX) says it's raised around C$3.45mln after closing its offering of flow-through shares.

Notably this includes more than 1.36 mln shares, which were issued after the full  exercise of the overallotment option by the agent Mackie.

As previously reported, the funds are planned to be used to drill horizontal wells and recompletion activities targeting oil in the Mannville, Nordegg or Banff shale formations as well as for exploration expenses.

Mackie Research acted as the agent and  offered the shares at 33 cents a pop.

It was granted the option to purchase up to a further 15% of the number of flow-through shares sold to cover overallotments.

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Tue, 19 Dec 2017 12:38:00 +1100 https://www.proactiveinvestors.com.au/companies/news/189040/point-loma-resources-raises-c345mln-in-oversubscribed-offering-189040.html
<![CDATA[News - Point Loma Resources unveils plans for C$3mln offering ]]> https://www.proactiveinvestors.com.au/companies/news/188001/point-loma-resources-unveils-plans-for-c3mln-offering-188001.html Point Loma Resources Ltd (CVE:PLX) unveiled plans to bring in up to C$3mln via an offering of flow-through shares.

It is planned the net funds will be used for the drilling of horizontal wells and recompletion activities targeting oil in the Mannville, Nordegg or Banff shale formations as well as for exploration expenses, the oiler said.

Mackie Research, acting as agent, will offer the shares priced at 33 cents each and closing is expected to occur on or about December 14 this year.

It has been granted the option to purchase up to a further 15% of the number of flow-through shares sold to cover overallotments, if any, up to December 29 this year.

Evenergy, which hold a 19.9% stake, will take part in the offering and acquire up to $654,977 in shares at 29 cents each to maintain its holding.

Evenergy is a subsidiary of Zhongcheng Group, one of the largest privately owned independent petroleum refinery, oil products and LPG (liquefied petroleum gas) distribution and retail companies in China.

Point Loma shares in Toronto were unchanged at C$0.28.

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Wed, 29 Nov 2017 11:59:00 +1100 https://www.proactiveinvestors.com.au/companies/news/188001/point-loma-resources-unveils-plans-for-c3mln-offering-188001.html
<![CDATA[News - Point Loma "substantially undervalued" compared to its nearest peers ]]> https://www.proactiveinvestors.com.au/companies/news/187773/point-loma-substantially-undervalued-compared-to-its-nearest-peers-187773.html Mackie Research has reiterated its ‘buy’ recommendation and C$1.10 target price on Point Loma Resources Ltd (CVE:PLX) after the energy firm’s results on Thursday.

The broker said it expects substantial growth as the company exploits its deep inventory of Mannville, Nordegg, Banff and Duvernay shale opportunities.

In its third-quarter results, Point Loma revealed that daily average production was 605 barrels of oil equivalent per day (boepd), up from 225 boepd in the third quarter of last year.

Mackie says that net production is expected to more than double with the tie-in of behind pipe volumes; “behind pipe” is an industry term that refers to a productive reservoir that is separated from the well bore by the casing.

“We estimate net behind pipe volumes in the greater Paddle River area is between 650 and 750 boe/d and another 250 boe/d in the Thornbury area for a total of up to 1,000 boe/d. These volumes are expected to be placed onstream later this year and into Q1/18,” Mackie said.

Mackie points out that Altura Energy Inc (CVE:ATU) and Traverse Energy Ltd (CVE:TVL) are companies with similar land positions and similarly sized production bases as Point Loma, yet they trade at substantially higher valuations.

“Altura and Traverse have a market cap of $46 million and $40 million respectively, versus Point Loma’s market cap of $12 million or approximately 25% of its closest peers,” Mackie observed, adding that Point Loma is highly attractive at current levels.

Point Loma racked up C$1.01mln of revenue in the third quarter, up from C$629,000 in the corresponding period of last year.

Capital expenditure rose to C$3.23mln from C$2.39mln the year before.

Net loss widened to C$2.79mln from C$124,000.

During the quarter, the West Cove 5-31-55-6W5 well was placed on production as a pumping oil well at Nordegg.

At Thorsby, the 103/11-18-49-1W5 Glauconitic discovery well was tied in and put on production mid-November. Production rates from the first week of operations averaged around 1.0mln cubic feet of gas per day and 10 barrels per day of condensate.

In 2018, Point Lomas intends to re-establish production in the Thornbury area. Potentially, the reconnect and optimize facilities could place another 1.2mln cubic feet per (mmcf) day (net) on production in the area through Point Loma's operated infrastructure.

At Leaman, plans are now under way to reactivate production of 16 area wells that had a previous combined producing rate of approximately 1.5 mmcf per day (net) with incremental associated liquids of around 80 barrels per day.

"Point Loma is executing a strong growth phase largely driven by low-risk reactivation activities," said Terry Meek, president and chief executive officer of Point Loma.

"The combination of new drilling, continued tuck-in acquisition opportunities and reactivation of key infrastructure in our core area has provided the impetus for a step change," he added.

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Fri, 24 Nov 2017 09:57:00 +1100 https://www.proactiveinvestors.com.au/companies/news/187773/point-loma-substantially-undervalued-compared-to-its-nearest-peers-187773.html
<![CDATA[News - Mackie repeats ‘buy’ on Point Loma as it enters the Duvernay shale play ]]> https://www.proactiveinvestors.com.au/companies/news/187041/mackie-repeats-buy-on-point-loma-as-it-enters-the-duvernay-shale-play-187041.html Broker Mackie repeated a 'buy' on oiler Point Loma Resources Ltd (CVE:PLX) after it updated on operations and acquired more land in its core Paddle River area in Alberta.

Significantly, it has established a 20 section (net) undeveloped position along the west shale basin Duvernay oil window that has been the focus of recent Alberta Crown land sales.

READ - Point Loma Resources boosted by plans to lift output in fourth quarter  BIG PIC - Point Loma Resources funded and looking to double production in Alberta

Interest in the Duvernay has been heightened by impressive initial oil weighted production tests results from private firms Artis Exploration and Vesta Energy, notes Mackie analyst Bill Newman.

On Monday, Chevron Canada Limited announced plans for an initial development of its Duvernay resource.

Chevron Canada’s president Jeff Gustavson described the Duvernay formation as "one of the most prospective liquids-rich shale plays in North America".

As a result, land prices are continuing to rise in the Duvernay and Point Loma’s 20 net Duvernay sections alone could be worth more than the company’s current market cap, suggests Newman.

Point Loma now has 160,000 net acres across the multizone Mannville, Nordegg and Banff fairways of west-central Alberta, including around 13,000 net acres in the Duvernay.

At Paddle River's Townships 55 and 56 Range 7W5 the well transfers have been completed and production is to commence.

"Further to the recently announced acquisition of horizontal well bores on section 4-56-7W5, the transfer of the two wells has been approved and Point Loma anticipates that production will begin in mid-November for the 12-4-56-7W5 Ostracod well. This well is in an updip position in the pool and has never been on production," the company said today.

"In addition, the corporation has entered into agreements to consolidate the area land positions of Point Loma to 80 percent working interest in the Paddle River Ostracod pool. The addition of these lands adds to the existing development inventory in Point Loma's core production area."

Newman says he estimates that the net behind pipe volumes in the greater Paddle River area is between 650 and 750 boe/d (barrel of oil equivalent per day) and another 250 boe/d in the Thornbury area for a total of up to 1,000 boe/d.

These volumes are expected to be on-stream later this year and into the first quarter of 2018.

Point Loma will continue to focus on its multi-layered play types including Nordegg oil, Banff, and Mannville (Ostracod and Sparky oil plays) and the Duvernay Shale, he added.

Mackie targets C$1.10 for the shares.

Today they are 32 cents - up 12.5%.

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Thu, 09 Nov 2017 14:29:00 +1100 https://www.proactiveinvestors.com.au/companies/news/187041/mackie-repeats-buy-on-point-loma-as-it-enters-the-duvernay-shale-play-187041.html
<![CDATA[News - Point Loma Resources boosted by plans to lift output in fourth quarter ]]> https://www.proactiveinvestors.com.au/companies/news/185451/point-loma-resources-boosted-by-plans-to-lift-output-in-fourth-quarter-185451.html Point Loma Resources Ltd (CVE:PLX) is eyeing a shift into positive cash generation as it activates multiple non-producing properties in the fourth quarter.

Updating on operations, the Alberta-focused junior said the ramp up also comes after closing two financings in May and June of 2017.

Shares in Toronto added 1.79% to C$0.285 on Wednesday.

At the Thorsby area, production is anticipated to begin from two wells in early November after the horizontal Sparky oil well will be completed in mid-October.

Once completed, it is expected that the well will be pipeline connected on the same surface lease as the previously drilled and tested Glauconitic well.

At West Cove, the 5-31-55-6W5 well was placed on production on October 1 and Point Loma is now working to stabilize the run time as the gas and fluid combination is now produced as a pumping oil well.

The firm also controls the surrounding lands which could lead to a larger development opportunity, it noted.

At Paddle River, Point Loma is now planning to side track and re-drill the identified oil pay zone, following the latest well in the Ostracod A pool, once a full  review is completed.

In addition, the firm expects that the previously announced acquired horizontal oil well 12-4-56-7W5 will be transferred and placed on production in mid-October.

Finally, at the Thornbury area, PLX has filed a development plan to undertake pipelining and reconnection of multiple wells during the first quarter of 2018.

Capital investment of around C$360,000 is required to reconnect around 2.0 mmcfd (1.6 mmcfd net) of natural gas into Point Loma operated facilities.

The result will be an increase in area netbacks and projected cash flow.

"The combined results of these activities in multiple areas should not only result in a step change of increased production but will lead to a higher liquids weighting for Point Loma." said Terry Meek, chief executive of Point Loma.

"Recent activity and targeted land purchases also add to our deep inventory of opportunities that position the corporation for continued growth in the coming years."

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Wed, 11 Oct 2017 12:31:00 +1100 https://www.proactiveinvestors.com.au/companies/news/185451/point-loma-resources-boosted-by-plans-to-lift-output-in-fourth-quarter-185451.html
<![CDATA[News - Point Loma Resources says 5-31-55-6W5 Nordegg well successfully recompleted ]]> https://www.proactiveinvestors.com.au/companies/news/184164/point-loma-resources-says-5-31-55-6w5-nordegg-well-successfully-recompleted-184164.html Point Loma Resources Ltd (CVE:PLX) updated on drilling operations  on its core areas in Alberta, where it has completed testing the 5-31-55-6W5 Nordegg well.

The final 24 hour rates averaged 160 bpd (barrels per day) of oil, 850 mcfd (million cubic feet per day) gas and 428 bpd water, demonstrarting the potential of the Nordegg for continued horizontal development.

The well is currently shut in to observe pressure build up prior to placing it back on production which is expected later this month.

Point Loma said it had drilled and cased 9-18-49-1W5 as a Sparky oil well and will sink a second well in the program at 02/1-32-55-7W5 as an Ostracod oil infill well.

The firm will complete and test two horizontal wells and should place them on production before the beginning of November this year, it said.

In addition, the company plans to begin production of the acquired well in 12-4-56-7W5 - part of the Ostracod A pool at Paddle River.

"Point Loma is pleased to initiate operations in our core areas that should not only increase our producing volumes but will improve our oil and liquids producing volumes and add to our revenues and netbacks." said Terry Meek, the president and chief executive of Point Loma.

"These steps should lead to additional drilling opportunities within our key producing areas."

Broker Mackie, after the news, repeated a 'buy on  the shares and C$1.10 target price.

"The success of the Nordegg well should not only add production but supports the potential for large upside from a horizontal well development program. In addition, the new 9-18 Sparky well and the 12-4 Ostracod development well could add 250 to 400 boe/d of production in early November..The total combined production additions in H2/17 of 900 to 1,150 boe/d," it said.

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Mon, 18 Sep 2017 14:24:00 +1000 https://www.proactiveinvestors.com.au/companies/news/184164/point-loma-resources-says-5-31-55-6w5-nordegg-well-successfully-recompleted-184164.html
<![CDATA[News - Point Loma Resources funded and looking to double production in Alberta ]]> https://www.proactiveinvestors.com.au/companies/news/183041/point-loma-resources-funded-and-looking-to-double-production-in-alberta-183041.html Point Loma Resources (CVE:PLX) is a rapidly growing, undervalued oiler, which should double its output in 2017.

It has already struck major deals this year, which have shifted the dial. One is a joint venture agreement with Transerv Energy's subsidiary Salt Bush, which allows it to drill multiple wells in the rest of the year.

The other was the $4 million investment from Evenergy at 48 cents a share, which will accelerate the junior's exploration, development and acquisition projects in 2017.

Evenergy is a subsidiary of Zhongcheng Group -  one of the largest private petroleum refinery, oil products and LPG distribution and retail companies in China.

What and where are the assets..?

Point Loma  has  over 160,000 net acres concentrated in west central Alberta. They lie in what's called the Mannville Trend, where it has an established an inventory of more than 400 potential horizontal well sites.

It is worth  noting that Mannville horizontal wells are highly economic even at low crude prices with IRR (internal rate of return) of between 50%  and 70%.

A positive latest quarter...

In the last three month quarter (second) PLX posted a profit of C$421,000 on revenues of C$980,000, helped by a C$1.7mln gain on the disposal of assets.

That compared with a loss of C$1.75mln on zero revenues in the same period of 2016.

In terms of barrels of oil equivalent (boe) per day produced, the total for the quarter to end June was 566.

Fully funded and poised for work..

Point Loma is aiming to spend around $3.5 million in the third quarter of 2017 (to end September) to include drilling two development wells, each of which could add between 150 and 250 boe/d.

One of those is the planned new Mannville development horizontal well within its Paddle River asset. The firm will also reactivate the 12-4 well in the same pool.

Drilled in 2013, the 12-4 well is tied into the group's network but has not yet produced due to facility constraints.

Notably, with the reactivation of the Paddle River gas plant, the group could add net production volumes of over 650 boe/d with little or no risk.

The group is looking to reactivate about 16 wells in the Paddle River area which is expected to add around 2.0 mmcf/d (net) -  millions of cubic feet per day -  of natural gas plus associated liquids.  

At the group's Thornbury asset area, it plans to re-connect and optimize facilities that could add net production of 1.5 mmcf/d, or 250 boe/d through company operated infrastructure.

A doubling of production, reckons broker Mackie

Mackie analyst Bill Newman estimates that the net 'behind pipe volumes' in the greater Paddle River area is between 650 and 750 boe/d, while the two well development drilling program in September could add 250 to 400 boe/d for a total combined production additions of 900 to 1,150 boe/d.

"We expect a rerating of the stock as the company builds production in H2/17,"  he says.

The broker repeats a 'buy' rating and targets $1.10 for the shares - not that far off three times' where they are now at 32 cents.

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Mon, 28 Aug 2017 12:16:00 +1000 https://www.proactiveinvestors.com.au/companies/news/183041/point-loma-resources-funded-and-looking-to-double-production-in-alberta-183041.html
<![CDATA[News - Point Loma Resources rises as it enjoys profitable quarter ]]> https://www.proactiveinvestors.com.au/companies/news/183008/point-loma-resources-rises-as-it-enjoys-profitable-quarter-183008.html Shares in Point Loma Resources Ltd (CVE:PLX) rose after it posted positive earnings for the second quarter.

The shares were up 4.8% at C$0.33 as the oil junior made a profit of C$421,000 in the three months to the end of June, on revenue of C$980,000, helped by a C$1.7mln gain on the disposal of assets.

That compared with a loss of C$1.75mln on zero revenues in the corresponding period of 2016.

During the quarter the company produced 115 barrels of crude oil per day and 16 barrels of natural gas liquids (NGLs), while production of natural gas clocked in at 2,611mln cubic feet (mcf) per day.

In terms of barrels of oil equivalent (boe) per day, the total was 566.

Global crude oil prices declined in the quarter but natural gas prices edged up on the back of increased energy consumption in the western US.

The average price achieved by Point Loma for crude oil in the second quarter was US$51.19 a barrel, bringing the number for the first half of the year down to US$52.88.

The average price for NGLs was US$30.88 (first half, or H1: US$36.29), while for natural gas the price per mcf was US$2.53 (H1: US$2.63).

In total, the company received US$22.93 per barrel of oil equivalent (H1: US$25.46).

Point Loma ended the half-year with C$6.06mln in cash and cash equivalents, up from C$677,000 at the end of 2016.

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Fri, 25 Aug 2017 08:47:00 +1000 https://www.proactiveinvestors.com.au/companies/news/183008/point-loma-resources-rises-as-it-enjoys-profitable-quarter-183008.html
<![CDATA[News - Point Loma Resources' Paddle River acquisition could double output in near term ]]> https://www.proactiveinvestors.com.au/companies/news/182218/point-loma-resources-paddle-river-acquisition-could-double-output-in-near-term-182218.html Point Loma Resources Ltd (CVE:PLX) is fully funded via its two joint ventures with Salt Bush and Evenergy and is looking at significant production increases in the short term at little cost.

So says broker Mackie, which has repeated a 'buy' and $1.10 price target.

Yesterday the Salt Bush venture said it had acquired two wells and rights at its Paddle River asset - firing the starting gun on new production from one well earmarked for next month (September).

The 12-4 well was drilled in 2013 but has not been produced due to past facility constraints  but output is now anticipated to begin in September, said Point Loma.

The 2-4-56-7W5 well has produced 200mln cubic feet of gas and 4,000 barrels of oil in total to date and is a potential re-entry candidate into the Ostracod A pool

Including the 12-4 well, the broker estimates the total net behind pipe production in the Paddle River area is between 650 boe/d and 750 boe/d (barrels of oil equivalent per day).

"We expect the majority of this production to be on-stream within the next 8 weeks," said analyst Bill Newman.

"The tie-in of behind pipe volumes in the greater Paddle River area has the potential to double corporate production in the near term which should rerate the stock.

"An additional development drilling commencing in September could add 250 boe/d to 400 boe/d by year-end," added the analyst.

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Wed, 09 Aug 2017 16:01:00 +1000 https://www.proactiveinvestors.com.au/companies/news/182218/point-loma-resources-paddle-river-acquisition-could-double-output-in-near-term-182218.html
<![CDATA[News - Point Loma Resources to lift output with Paddle River well acquisition ]]> https://www.proactiveinvestors.com.au/companies/news/182150/point-loma-resources-to-lift-output-with-paddle-river-well-acquisition-182150.html Junior oiler Point Loma Resources Ltd (CVE:PLX) said its joint venture with  Salt Bush Energy has acquired two wells and rights at its Paddle River asset in a $335,000 deal - firing the starting gun on new production from one well earmarked for next month (September).

The 12-4-56-7W5 well was drilled in 2013 but has not been produced due to past facility constraints  but output is now anticipated to begin in September, said Point Loma.

The 2-4-56-7W5 well has produced 200mln cubic feet of gas and 4,000 barrels of oil in total to date and is a potential re-entry candidate into the Ostracod A pool, it added.

The firm aims to begin drilling this month with the drilling of two wells in addition to the activation of the acquired above 12-4 well.

"Point Loma is pleased to add to our core position in the Paddle River Ostracod pool. The 12-4 well should add to our area production in the near term, and the lands acquired will potentially provide additional drilling opportunities as well," said Terry Meek, Point Loma's chief executive.

"Such consolidation acquisitions continue to add value to Point Loma while expanding our core position."

Point Loma added that it was working with the new owners of the Paddle River gas processing facility to reactivate previously suspended wells in the area.

The acquisition has closed into escrow and is anticipated to close within the next 30 days subject to regulatory approvals.

Total deal costs to the Point Loma/Salt Bush JV are $335,000, the firm said.

No reserves are currently assigned to the wells pending the start of production.

The Ostracod A pool currently produces around 300 barrels of oil equivalent per day (boepd) and has cumulative production of 500,000 barrels of oil and 2.7bn cubic feet of natural gas.

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Tue, 08 Aug 2017 14:33:00 +1000 https://www.proactiveinvestors.com.au/companies/news/182150/point-loma-resources-to-lift-output-with-paddle-river-well-acquisition-182150.html
<![CDATA[News - Point Loma Resources closes $4.02mln strategic investment from Evenergy ]]> https://www.proactiveinvestors.com.au/companies/news/179642/point-loma-resources-closes-402mln-strategic-investment-from-evenergy-179642.html Oil producer Point Loma Resources (CVE:PLX) says Evenergy has now invested $4.02mln in the firm after a second tranche placing was completed.

As revealed last month Evenergy - a subsidiary of huge Chinese oil firm Zhongcheng Group- will buy 8.375mln shares in Point Loma at 48 cents a pop.

The second tranche saw it buy around 4.6mln shares  for$2,222,459 is now finished

Point Loma said it will use the proceeds to accelerate drilling and facilities plans previously announced.

The company said: "With the closing of this investment agreement, Point Loma has attracted another strategic investor that will allow Point Loma to accelerate currently identified opportunities and provides additional capital options to pursue opportunities in the core focus area of west-central Alberta."

"Point Loma is excited to add to our capital programs in 2017 with this addition of capital at a key time in our growth cycle," added Terry Meek, president and chief executive.

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Wed, 21 Jun 2017 15:41:00 +1000 https://www.proactiveinvestors.com.au/companies/news/179642/point-loma-resources-closes-402mln-strategic-investment-from-evenergy-179642.html
<![CDATA[News - Point Loma shares surge as Mackie gives upbeat assessment ]]> https://www.proactiveinvestors.com.au/companies/news/179487/point-loma-shares-surge-as-mackie-gives-upbeat-assessment-179487.html Point Loma Resources Ltd (CVE:PLX) raced up 20 % today as broker Mackie said the stock was a great buying opportunity and has the firepower to grow reserves and production in 2017.

On the heels of the joint venture deal with Salt Bush and the equity financing with Evenergy, it has a capital budget of  $5mln for the second and third quarter which includes the drilling of two horizontal development wells and one vertical exploration well in Alberta.

With success, the oiler plans additional drilling in the fourth quarter, notes analyst Bill Newman, who expects a re-rating of shares.

Moreover, last month Tidewater Midstream and Infrastructure bought its 70 mmcf/d (million cubic feet per day) Paddle River gas plant and Tidewater is currently reviewing plans to reactivate the  plant which would allow Point Loma to reactivate previously producing suspended wells.

"With the plant reactivated, PLX could add net production volumes of 400 boe/d simply by truing on the shut-in wells. Additionally with the plant operational again, PLX see multiple drilling opportunities."

In addition, Point Loma trades at 46% of Mackie's core NAV (net asset value) of $0.77 per fully diluted share and 29% of  the broker's risked NAV of $1.21 per fully diluted share.

Mackie rates shares a 'buy' with a $1.10 target price.

Shares added 20% to $0.42 on the day.

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Mon, 19 Jun 2017 15:27:00 +1000 https://www.proactiveinvestors.com.au/companies/news/179487/point-loma-shares-surge-as-mackie-gives-upbeat-assessment-179487.html
<![CDATA[News - Point Loma Resources eyeing operations as outlines busy first quarter ]]> https://www.proactiveinvestors.com.au/companies/news/178509/point-loma-resources-eyeing-operations-as-outlines-busy-first-quarter-178509.html Oil producer Point Loma Resources Ltd (CVE:PLX) outlined a busy first quarter, which was characterised by acquisitions and a rising production profile.

Two transactions closed in January and February  on top of work in December, which resulted in increased production for the three months and an average of 830 barrels of oil equivalent per day for March, it said.

Meanwhile, on May 23, 2017, Point Loma closed the disposal and joint venture deal with Salt Bush Energy for $4.17mln for 20% of its oil and gas assets.

A strategic investment..

The next day, PLX announced a strategic investment from Evenergy to acquire 8.375mln shares of Point Loma for $4.02mln, representing a purchase price of 48 cents a share.

Gross revenue for the quarter was $1,515 (quarter to end December, 2016: $970), while the net loss fell to $772, narrowed from  a loss of $2,522 in the preceding quarter.

"With the injection of the additional capital outlined above Point Loma is planning to undertake a busy drilling and facilities program this summer," said Terry Meek, chief executive.

"The corporation has approved a capital budget for the second and third quarters that will see approximately $5-million of activity including the drilling of two horizontal development wells, one vertical exploratory test, and additional facilities optimization and acquisitions. Point Loma anticipates that these activities will be the precursor to an increase in oil and gas production into the fourth quarter.

The Paddle River gas facility...

"Pending success and approved capital programs Point Loma would anticipate a further program of drilling in the fourth quarter. Point Loma has been in contact with an industry mid-stream operator regarding their announced purchase of the Paddle River gas facility and infrastructure system.

"Point Loma has previously producing suspended wells in the area that could be reactivated into the facility.

He concluded: "The combination of additional capital, development drilling, identified tuck-in opportunities and potential reactivation of key infrastructure in our core area provides the impetus for a growth step and operational improvements for Point Loma that would benefit our production levels while improving our netbacks through lower operating costs."

Shares are unchanged at 48 cents each.

Broker Mackie repeated a ‘buy’ recommendation and $1.10 target price.

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Tue, 30 May 2017 15:24:00 +1000 https://www.proactiveinvestors.com.au/companies/news/178509/point-loma-resources-eyeing-operations-as-outlines-busy-first-quarter-178509.html
<![CDATA[News - Point Loma Resources shareholder lifts interest to almost 18% with latest share buy ]]> https://www.proactiveinvestors.com.au/companies/news/178354/point-loma-resources-shareholder-lifts-interest-to-almost-18-with-latest-share-buy-178354.html Oil producer Point Loma Resources (CVE:PLX) said Kevin R. Baker is now interested in 17.96% of the group's capital after buying more shares.

Today (May 25) he acquired around 2.34mln shares in the group for $550,000 in what' called an arm's-length private transaction.

READ - Point Loma Resources poised for growth as its plans accelerate

On April 24, he bought over 2.34mln shares, also for $550,000 and lifted his interest to 11.01% from 4% previously.

Yesterday, the group said it had raised just over $4mln with a strategic investment from Evenergy Company to accelerate growth plans.

Evenergy - a subsidiary of huge Chinese oil firm Zhongcheng Group- will buy 8.375mln shares in Point Loma at 48 cents a share for $4.02mln.

This week, the firm also announced the closing of the  joint venture funding deal with Transerv Energy's subsidiary Salt Bush.

PLX sold a 20% working interest (WI) in its Alberta assets for $5mln and formed a joint venture to boost crude output and help it seek new opportunities.

Shares nudged 1.04% up at $0.485.

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Thu, 25 May 2017 15:46:00 +1000 https://www.proactiveinvestors.com.au/companies/news/178354/point-loma-resources-shareholder-lifts-interest-to-almost-18-with-latest-share-buy-178354.html
<![CDATA[News - Point Loma Resources gets $4mln injection from investor Evenergy ]]> https://www.proactiveinvestors.com.au/companies/news/178282/point-loma-resources-gets-4mln-injection-from-investor-evenergy-178282.html Oil producer Point Loma Resources (CVE:PLX) has raised just over $4mln with a strategic investment from Evenergy Company to accelerate growth plans.

Evenergy - a subsidiary of huge Chinese oil firm Zhongcheng Group- will buy 8.375mln shares in Point Loma at 48 cents a share for $4.02mln, it revealed. Shares are currently changing hands at 48.5 cents.

READ - Point Loma closes $5mln joint venture deal with Transerv READ - Point Loma's potential going unnoticed, reckons Mackie

The funds will be used to accelerate previously announced drilling and construction plans.

"Point Loma is excited to add to our capital programs in 2017 with this injection of capital at a key time in our growth cycle," said Terry Meek, president and chief executive.

"Evenergy is an organization seeking further investment opportunities with Point Loma that, in conjunction with Salt Bush Energy, will allow for strong access to capital in this challenging energy market we face today.

"With this combination of capital sources, Point Loma can look to strong growth in 2017 and beyond."

Point Loma is currently producing around 700 barrels of oil equivalent per day (postclosing of the Salt Bush joint venture).

The company expects to accelerate its development plan and increase production with the deployment of the proceeds through certain identified acquisitions, reactivations, development drilling and new pool drilling opportunities, it said.

The investment is expected to close in two tranches, with the first on May 29 to the tune of around $1.79mln.

Evenergy will have the right to nominate one director to the Point Loma board and take part in future equity issuances.

Yesterday, Point Loma announced the closing of the  joint venture funding deal with Transerv Energy's subsidiary Salt Bush.

PLX sold a 20% working interest (WI) in its Alberta assets for $5mln and formed a joint venture to boost crude output and help it seek new opportunities.

An initial capital budget of $5 million through the third quarter of 2017 will be allocated to the drilling of development wells and to build facilities to optimise field operating and activate additional production and target area acquisitions.

Broker Mackie says Evenergy has deep pockets and is a long term strategic investor, which targets quality oil and gas assets.

It is a subsidiary of Zhongcheng Group -  one of the largest independent petroleum refinery, oil products and LPG distribution and retail companies in China.

Mackie says PLX is highly undervalued and trading far below its peer group,  investors today can buy in at a very attractive price with an active drill program to come for the remainder of 2017.

With around 110 million barrels of original oil in place,  it also noted the firm's West Cove Nordegg field has the potential to add substantial reserves and could be a company maker in its own right.

Shares eased 1.03% to $0.48.

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Wed, 24 May 2017 13:07:00 +1000 https://www.proactiveinvestors.com.au/companies/news/178282/point-loma-resources-gets-4mln-injection-from-investor-evenergy-178282.html
<![CDATA[News - Point Loma Resources poised for growth as its plans accelerate ]]> https://www.proactiveinvestors.com.au/companies/news/178283/point-loma-resources-poised-for-growth-as-its-plans-accelerate-178283.html Oil producer Point Loma Resources (CVE:PLX) is eyeing a busy year ahead operationally, alongside a production boost as it develops its highly exciting assets in the Mannville trend in West Central Alberta.

In a milestone moment, the Toronto-listed junior has now closed its previously announced joint venture funding deal with Transerv Energy's subsidiary Salt Bush and gained Chinese Evenergy as a strategic investor.

A boost for output and new opportunities...

Last month, the junior oil group revealed it had sold a 20% working interest (WI) in its Alberta assets for $5mln and formed a joint venture with the latter, which will boost crude output and help it seek new opportunities.

It means that Salt Bush will contribute $5mln in cash to the firm in exchange for a 20% working interest (WI) in Point Loma's lands, property and equipment.

These funds will be allocated to re-activate currently suspended wells and build  facilities that will lead to operating cost reductions. It will also start a drilling program.

The company aims in the short term to drill four to five wells in 2017 alone, with each successful one set to have a big impact on output.

It also wants to reactivate it Paddle River asset production adding around 400 boe/d (barrels of oil equivalent per day). Each well has the potential to add 200 to 300 boe/d.

So Point Loma's current output of around 900 boe/d is anticipated to increase.

A large land base amassed....

The firm has amassed a large concentrated land base within the multi-zone Mannville trend and established an inventory of over 400 potential horizontal well locations providing a significant development growth platform.

Its portfolio includes over 210,000 net acres with significant shallow to medium depth horizontal drilling potential.

Broker Mackie upbeat....

Mannville horizontal wells are highly economic even at low crude prices with IRR (internal rate of return) of between 50%  and 70%, broker Mackie has noted.

Point Loma remains highly undervalued, said analyst Bill Newman, who rates shares a 'buy' and targets $1.10.

It trades at 47% of the broker's core NAV (net asset value) of $1.01 per fully diluted share and 37% of its risked NAV.

The broker says Evenergy has deep pockets and is a long term strategic investor, which targets quality oil and gas assets.

It is a subsidiary of Zhongcheng Group -  one of the largest independent petroleum refinery, oil products and LPG distribution and retail companies in China.

In addition, Mackie says that with around 110 million barrels of original oil in place, the firm's West Cove Nordegg field has the potential to add substantial reserves and could be a company maker in its own right.

A new strategic investor..

The firm is raising just over $4mln with a strategic investment from Evenergy Company to accelerate the growth plans.

Evenergy will buy 8.375mln shares in Point Loma at 48 cents a share for $4.02mln. Shares are now at 48.5 cents.

"Evenergy is an organization seeking further investment opportunities with Point Loma that, in conjunction with Salt Bush Energy, will allow for strong access to capital in this challenging energy market we face today," said chief executive Terry Meek.

"With this combination of capital sources, Point Loma can look to strong growth in 2017 and beyond," he added.

Mackie adds: “The $4 million investment by Evenergy Company not only allows PLX to accelerate its current exploration, development and acquisition plans, it also provides the company with a strong strategic partner to provide additional funds in the mid to longer term.”

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Wed, 24 May 2017 08:52:00 +1000 https://www.proactiveinvestors.com.au/companies/news/178283/point-loma-resources-poised-for-growth-as-its-plans-accelerate-178283.html
<![CDATA[News - Point Loma closes $5mln joint venture deal with Transerv ]]> https://www.proactiveinvestors.com.au/companies/news/178212/point-loma-closes-5mln-joint-venture-deal-with-transerv-178212.html Oil producer Point Loma Resources (CVE:PLX) said today it had closed the previously announced joint venture funding deal with Transerv Energy's subsidiary Salt Bush.

Last month, the junior oil group revealed it had sold a 20% working interest (WI) in its Alberta assets for $5mln and formed a joint venture, which will boost crude output and help it seek new opportunities.

READ - Point Loma's potential going unnoticed, reckons Mackie READ - Point Loma set to boost output with $5mln new joint venture deal

"Point Loma is looking forward to the strategic JV with Salt Bush as it will accelerate the ability to unlock the value of our west central Alberta properties," said Terry Meek, chief executive at Point Loma.

"The agreement will allow us not only to begin this much anticipated growth phase with the initiation of drilling activity but allows us to explore other opportunities through this additional access to capital in a challenging market."

Highlights of the deal are that Point Loma and Salt Bush will now proceed on the basis of an 80:20 working interest relationship.

An initial capital budget of $5 million through the third quarter of 2017 will be allocated to the drilling of development wells and to build facilities to optimise field operating and activate additional production and target area acquisitions.

Point Loma's current output of around 900 boe/d (barrels of oil equivalent per day) is anticipated to ultimately increase with the deployment of the proceeds through certain identified acquisitions, development drilling and new pool drilling opportunities.

"In establishing this JV, Point Loma has attracted a strategic partner that will allow Point Loma to accelerate currently identified opportunities and additional capital options to pursue opportunities in the core focus area of west central Alberta," it said today.

Following the news, broker Mackie repeated a 'buy' stance and  $1.10 target price.

The firm's focus is now on immediate production adds through the tie-in behind pipe production and through a multi well development drilling program that should boost production by year-end, said analyst Bill Newman.

Point Loma remains highly undervalued, he suggests, 

It trades at 47% of the broker's core NAV (net asset value) of $1.01 per fully diluted share and 37% of its risked NAV.

"We expect a rerating of the stock as PLX hits production targets."

Shares added 1.04% on the day to $0.485

--Updates for share price rise---.

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Tue, 23 May 2017 10:54:00 +1000 https://www.proactiveinvestors.com.au/companies/news/178212/point-loma-closes-5mln-joint-venture-deal-with-transerv-178212.html
<![CDATA[News - Point Loma's potential going unnoticed, reckons Mackie ]]> https://www.proactiveinvestors.com.au/companies/news/177257/point-loma-s-potential-going-unnoticed-reckons-mackie-177257.html Point Loma Resources Inc (CVE:PLX) is a good buying opportunity for investors, reckons broker Mackie.

"The company has amassed a large concentrated land base within the Mannville trend in West Central Alberta and has established an inventory of over 400 potential horizontal well locations providing a significant development growth platform," says analyst Bill Newman.

Mannville horizontal wells are highly economic even at low crude prices with IRR (internal rate of return) of between 50%  and 70%.

As well as having a board of "company builders", with the completion of its joint venture JV with Salt Bush, the firm plans to drill four to five wells in 2017, with each successful well having a large impact on production.

Last month, Point Loma said it had sold a 20% working interest (WI) in its Alberta assets for $5mln and formed a joint venture. The extra capital will help potential acquisitions in the area, said Mackie.

Elsewhere, Newman continues that with around 110 million barrels of original oil in place at its West Cove Nordegg field, this has the potential to add substantial reserves.

"We believe the West Cove Nordegg field could be a company maker on its own," says the broker.

"Point Loma is highly undervalued trading at a large discount to its peer. We feel the market may not be fully valuing PLX’s development growth potential and we expect a rerating of the stock as the company demonstrates rapid, sustainable production growth leading to better visibility and awareness by investors," concludes the analyst.

He has a $1.10 target price on the shares, which is more than double where they are now at 50 cents.

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Wed, 03 May 2017 14:28:00 +1000 https://www.proactiveinvestors.com.au/companies/news/177257/point-loma-s-potential-going-unnoticed-reckons-mackie-177257.html
<![CDATA[News - Point Loma Resources looking forward to drilling “large opportunity base” ]]> https://www.proactiveinvestors.com.au/companies/news/177168/point-loma-resources-looking-forward-to-drilling-large-opportunity-base-177168.html Point Loma Resources Inc (CVE:PLX) told investors it plans to start drilling its “large opportunity base” which it expects will include development locations and new pool targets.

The company, in its financial results statement, highlighted recent deals – separately in January and in April – aimed at helping the group take move forward with its strategy.

In January, the company announced two deals which saw the group increase production to 900 barrels of oil per day, and also brought opportunities to increase production further.

The transaction in April, meanwhile, saw Point Loma divest a 20% in operating assets in return for US$5mln once the deal closes (anticipated in early June).

Point Loma highlighted that the injection of capital will be used to accelerate activity across its properties - for drilling, facilities additions and certain targeted acquisitions.

In terms of financials, the company reported $1.6mln of gross revenue for the year for the twelve months ended December 31, while for the fourth quarter it amounted to $970,000.

The company reported a net loss of $4.42mln loss for the year, and the loss for the fourth quarter totalled $2.52mln.

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Tue, 02 May 2017 09:36:00 +1000 https://www.proactiveinvestors.com.au/companies/news/177168/point-loma-resources-looking-forward-to-drilling-large-opportunity-base-177168.html
<![CDATA[News - Baker buys Point Loma Resources shares ]]> https://www.proactiveinvestors.com.au/companies/news/176868/baker-buys-point-loma-resources-shares-176868.html Oil producer Point Loma Resources (CVE:PLX) unveiled the details of a share buy from Kevin R. Baker, QC.

The latter bought over 2.34mln shares for $550,000 in a private transaction on April 24, the group said.

READ - Point Loma set to boost output with $5mln new joint venture deal READ - Alberta-focused Prairie Provident and Point Loma positioned for rebound, says Mackie

Baker is now interested in around 3.710mln shares, or 11.01% of the capital, compared to previously when he had around 4%.

Earlier this month,  Point Loma Resources (CVE:PLX) revealed it had sold a 20% working interest (WI) in its Alberta assets for $5mln and formed a joint venture, which will boost crude output and help it seek new opportunities.

The deal is with the Canadian subsidiary of Transerv Energy Ltd, a group instrumental in the initial stages of Point Loma's predecessor companies.

Salt Bush Energy will pay Point Loma $1.5 million by April 17 this year and the remaining balance of $3.5mln upon closing.

The funds will be used for drilling, facility improvements to reactivate production and certain producing property acquisitions, it said.

Initial capital expenditures are expected to result in appreciation in Point Loma production and associated net revenues.

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Tue, 25 Apr 2017 11:10:00 +1000 https://www.proactiveinvestors.com.au/companies/news/176868/baker-buys-point-loma-resources-shares-176868.html
<![CDATA[News - Point Loma set to boost output with $5mln new joint venture deal ]]> https://www.proactiveinvestors.com.au/companies/news/176245/point-loma-set-to-boost-output-with-5mln-new-joint-venture-deal-176245.html Oil producer Point Loma Resources (CVE:PLX) has sold a 20% working interest (WI) in its Alberta assets for $5mln and formed a joint venture, which will boost crude output and help it seek new opportunities.

The deal is with the Canadian subsidiary of Transerv Energy Ltd, a group instrumental in the initial stages of Point Loma's predecessor companies, the firm revealed.

Salt Bush Energy will pay Point Loma $1.5 million by April 17 this year and the remaining balance of $3.5mln upon closing.

The funds will be used for drilling, facility improvements to reactivate production and certain producing property acquisitions, it said.

Initial spend expected to lift outout and revenue..

Initial capital expenditures are expected to result in appreciation in Point Loma production and associated net revenues.

After a highly accretive acquisition in March this year, Point Loma said another 450 boepd (barrel of oil equivalent per day) of behind pipe volumes was expected to be on production this summer.

Today, it said current production of around 900 boepd was expected to increase with the proceeds from this latest deal through certain identified acquisitions, development drilling and new pool drilling opportunities.

This deal, it told investors, will allow it to accelerate currently identified opportunities and additional capital options to pursue opportunities in its core area of west central Alberta.

"Point Loma has been able to acquire certain assets for accretive terms in the region and this transaction will inject capital to activate additional acquired production previously suspended and to expand the corporation's drilling program," it said in a regulatory statement.

Following closing, expected before 9 June, Point Loma will hold 80% WI of the venture and Salt Bush 20%.

Mackie upbeat; repeats 'buy'..

Broker Mackie is upbeat on the deal, which it says will accelerate growth without dilution.

It repeats a 'buy' and $1 target price.

Analyst Bill Newman  noted it allowed Point Loma to accelerate reserves and production growth by building facilities, reactivating suspended wells and beginning a drill program.

"In addition, a portion of the proceeds is to be invested into the acquisition of additional producing properties," he said.

"PLX will release its year-end 2016 results shortly which should include more details on the disposition and joint venture and guidance for 2017."

Point Loma shares  were off 4.26%  at the time of writing at $0.45 each.

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Mon, 10 Apr 2017 10:36:00 +1000 https://www.proactiveinvestors.com.au/companies/news/176245/point-loma-set-to-boost-output-with-5mln-new-joint-venture-deal-176245.html
<![CDATA[News - Alberta-focused Prairie Provident and Point Loma positioned for rebound, says Mackie ]]> https://www.proactiveinvestors.com.au/companies/news/175239/alberta-focused-prairie-provident-and-point-loma-positioned-for-rebound-says-mackie-175239.html Two Alberta-focused juniors have caught the eye of Mackie Research, and the broker reckons both are positioned for a rebound.

Analyst Bill Newman has run the rule over Point Loma Resources (CVE:PLX) and Prairie Provident Resources (TSE: PPR).

Both companies are producers -  the former holding more than 225,000 net acres in west central Alberta and with a large drilling inventory of over 400 locations, and the latter targeting Mannville plays within Alberta.

A growth story 

Point Loma is a 'growth story', points out Newman, whose relatively low well costs and strong production allows for  robust economics.

This month, it has completed the acquisition of an additional 400 boepd (barrels of oil equivalent per day) to add to the 570 boepd it had at the end of 2016.

"This was a highly accretive acquisition with Point Loma paying less than $4,000 per flowing barrel," says the analyst.

Another 450 boepd of behind pipe volumes is expected to be on production this summer taking production up to around 1,350 boepd and after a three wells drilling program, the broker expects production to increase to 1,750 boepd by year-end. 

Point Loma  is also  highly undervalued, trading at a 2017 estimates on enterprise value to discounted adjusted cash flow EV/DACF multiple of just 3.1 times' and at 46% of Mackie's core NAV of $1.18/fd share.

Prairie Provident's acquisition highly accretive.

Meanwhile, Prairie Provident has a larger current production base of around 6,500 boepd, including the recent acquisition of  around 1,100 bbl/d (barrels a day) of  production near to the firm's Evi property, says Newman. 

The acquisition was highly accretive on a reserves basis as well, adding 3.8 million barrels of proven plus probable (2P) reserves for only $10.72 per barrel of oil equivalent (boe).

Mackie has increased its proven developed producing (PDP) valuation on the firm to $1.57 per share.

In other words, the company is trading at a 60% discount to its PDP valuation of $1.57 per share and a big discount to its proven plus probable value of $2.63 per share.

Point Loma shares stand currently at $0.48, while Prairie Provident's are at $0.60.

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Wed, 22 Mar 2017 11:53:00 +1100 https://www.proactiveinvestors.com.au/companies/news/175239/alberta-focused-prairie-provident-and-point-loma-positioned-for-rebound-says-mackie-175239.html
<![CDATA[News - Mackie Research hikes price target for Point Loma Resources after completion of Judy Creek acquisition ]]> https://www.proactiveinvestors.com.au/companies/news/174238/mackie-research-hikes-price-target-for-point-loma-resources-after-completion-of-judy-creek-acquisition-174238.html Mackie Research has hiked its price target for Canadian explorer Point Loma Resources Ltd (CVE:PLX) by 10% after the firm announced the completion of the Judy Creek asset acquisition this week.

Reiterating a ‘buy’ rating on the stock, Mackie analyst Bill Newman raised the target for Point Loma to C$1.10 from C$1.00 having increased his risked net asset value estimate to C$1.37 per share from C$1.34.

Newman said the increase reflects the fact that Point Loma only issued 3.35 mln shares to complete the acquisition versus the 4.00 mln that was originally announced due to minor closing adjustments.

The analyst noted that with the completion of the acquisition, Point Loma’s total land position increases by 105,000 acres to over 225,000 net acres.

He also highlighted upcoming production increases to over 900 barrels of oil equivalent per day (boe/d), with a further 450 boe/d expected to be on production this summer.

Newman pointed out that the company plans to drill up to three wells in the third-quarter which he expects to increase production to 1,750 boe/d by the year-end.

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Fri, 03 Mar 2017 15:16:00 +1100 https://www.proactiveinvestors.com.au/companies/news/174238/mackie-research-hikes-price-target-for-point-loma-resources-after-completion-of-judy-creek-acquisition-174238.html
<![CDATA[News - Point Loma closes acquisition of oil, gas assets in Alberta ]]> https://www.proactiveinvestors.com.au/companies/news/174060/point-loma-closes-acquisition-of-oil-gas-assets-in-alberta-174060.html Point Loma Resources Ltd (CVE: PLX) said on Wednesday it has closed the agreement to acquire oil and gas assets, effective on Jan. 1, from a private oil and gas company with the issuance of 3.35 million shares of Point Loma.

Read: Point Loma Resources acquires oil and gas producing operations in Alberta

"This acquisition will continue Point Loma's growth in size and strength as a junior oil and gas company. We continue to seek quality assets that will extend our core focus area at favourable acquisition metrics," said Terry Meek, president and chief executive officer of Point Loma.

"The expansion of our focus area will continue to build shareholder value as Point Loma develops the Mannville trend in west-central Alberta."

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Wed, 01 Mar 2017 14:28:00 +1100 https://www.proactiveinvestors.com.au/companies/news/174060/point-loma-closes-acquisition-of-oil-gas-assets-in-alberta-174060.html
<![CDATA[News - Point Loma estimates proved plus probable reserves at 2,037 mboe ]]> https://www.proactiveinvestors.com.au/companies/news/173842/point-loma-estimates-proved-plus-probable-reserves-at-2037-mboe-173842.html Point Loma Resources Ltd (CVE: PLX) said on Monday it has entered into an agreement to acquire certain properties in the Judy creek and Thornbury areas that will expand its Paddle River focus area and add significant reserves and production.

Unveiling its 2016 year-end reserves report which indicated 2,037 mboe were proved plus probable, the company also said it was working to license wells for drilling in 2017 to further develop existing oil pools and test additional bypass pay opportunities. Point Loma now has approximately 225,000 net acres and a large inventory of indicated prospects that can allow the Corporation to grow quickly as we gain scale and better valuation in capital markets.

With the addition of Judy Creek and Thornbury properties Point Loma will be producing approximately 900 boe/d and will have an additional estimated 450 boe/d of behind pipe production. Re-activating this production will be the focus of first half 2017 activity. Point Loma will continue to seek deals that strengthen our cash flow per share and reserves per share.

 

Highlights:

 

Total proved plus probable ("2P") reserves of 2,037 mboe and proved ("TP") reserves of 1,533 mboe. Discounted at 10% Point Loma year estimated 2P present value of $19.8 million Cdn and TP present value of $13.5 million Cdn. Pro-forma estimate including two transactions post year-end Ascent Energy Ltd. ("Ascent") and certain properties in the Judy Creek and Thornbury areas of Alberta ("Judy Creek") 2P reserves of 4,976 mboe and TP reserves of 3,923 mboe. Pro-forma estimated net present value of the combined entities, as of December 31, 2016, upon closing of the Judy Creek transaction would be $36.5 million Cdn on 2P reserves and $27.6 million Cdn on TP reserves discounted at 10%. Accretion of the combined transactions of 72 percent per share on a 2P reserve basis. Accretion of the combined transactions of 111 percent per share on a producing boe basis. Additional behind pipe production of 450 boe/d with the Judy Creek acquisition.

 

Point Loma said it agreement to acquire certain assets in the Judy Creek and Thornbury areas of Alberta is expected to close in late February 2017 and is subject to standard closing conditions and the subsequent Alberta Energy Regulator approval of the transfer of licenses.

Point Loma said it has completed a transaction to acquire the corporation Ascent and has amalgamated Ascent into Point Loma effective January 24.

Point Loma shares were up 1.8% at C$0.58 on Monday.

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Mon, 27 Feb 2017 10:43:00 +1100 https://www.proactiveinvestors.com.au/companies/news/173842/point-loma-estimates-proved-plus-probable-reserves-at-2037-mboe-173842.html
<![CDATA[News - Point Loma holder Madalena sells 936,500 shares ]]> https://www.proactiveinvestors.com.au/companies/news/172250/point-loma-holder-madalena-sells-936500-shares-172250.html Madalena Energy (CVE:MVN) has confirmed that on Jan 23 and Jan 25 it sold 936,500 Point Loma Resources Ltd. (CVE:PLX)  shares through the facilities of the TSX Venture Exchange for total gross proceeds of approximately C$358,000.

As a result, Madalena now holds 4,684,314 common shares (17%) of Point Loma's currently issued and outstanding common shares.

Madalena may, depending on market and other conditions, increase or decrease its ownership of common shares of the company, whether in the open market, by privately negotiated agreement or otherwise going forward.

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Thu, 26 Jan 2017 14:15:00 +1100 https://www.proactiveinvestors.com.au/companies/news/172250/point-loma-holder-madalena-sells-936500-shares-172250.html
<![CDATA[News - Point Loma Resources acquires oil and gas producing operations in Alberta ]]> https://www.proactiveinvestors.com.au/companies/news/172124/point-loma-resources-acquires-oil-and-gas-producing-operations-in-alberta-172124.html Point Loma Resources Ltd (LON:PLX) has agreed to acquire oil and gas producing assets in west central Alberta.

It is paying C$1.6mln to acquire the assets, which are contiguous to the company’s own operations in the area.

The new operations, spanning some 55,000 acres, currently yield 410 barrels oil equivalent per day comprising 95% natural gas.

"This acquisition will continue Point Loma's growth in size and strength as a junior oil and gas company,” said chief executive Terry Meek.

“We continue to seek quality assets that will extend our core focus area at favorable metrics.

"The expansion of our focus area will continue to build shareholder value as Point Loma develops the Mannville trend in west central Alberta."

Broker Mackie said the firm was a rapidly growing, exploration and production company with a large concentrated land base in west central Alberta.

The acquisition announced today nearly doubles production to an estimated around 900 boe/d and increases its land base in west central Alberta by 43% to 180,600 net acres, it said.

"We maintain our BUY recommendation and our $1.00 target price on PLX on its large and growing prospect inventory for conventional oil and gas within the multi-zone Manville trend," noted analyst Bill Newman.

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Tue, 24 Jan 2017 10:05:00 +1100 https://www.proactiveinvestors.com.au/companies/news/172124/point-loma-resources-acquires-oil-and-gas-producing-operations-in-alberta-172124.html
<![CDATA[Media files - Point Loma Resources Ltd looking to grow value in Alberta ]]> https://www.proactiveinvestors.com.au/companies/stocktube/6739/point-loma-resources-ltd-looking-to-grow-value-in-alberta-6739.html Tue, 17 Jan 2017 08:44:00 +1100 https://www.proactiveinvestors.com.au/companies/stocktube/6739/point-loma-resources-ltd-looking-to-grow-value-in-alberta-6739.html <![CDATA[News - Point Loma investor Madalena sells C$258,000-worth of shares ]]> https://www.proactiveinvestors.com.au/companies/news/171675/point-loma-investor-madalena-sells-c258000-worth-of-shares-171675.html Point Loma Resources Ltd. (CVE:PLX) investor Madalena Energy Inc. (CVE:MVN), has sold 624,000 shares on Jan 11 and 12 through the TSX Venture Exchange and raised gross proceeds of C$258,000.

The announcement respects the early warning requirements of applicable Canadian securities laws.

As a result of the transaction, Madalena has disposed of 624,000 of the 6,244,814 common shares it formerly held in Point Loma. Madalena now owns and has direction and control over 5,620,814 common shares (21%) of Point Loma's currently issued and outstanding common shares.

Madalena may, depending on market and other conditions, increase or decrease its ownership of common shares of the company, whether in the open market, by privately negotiated agreement or otherwise going forward.

Point Loma shares closed at C$0.42 on Friday, while Madalena’s shares closed at C$0.17.

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Mon, 16 Jan 2017 09:02:00 +1100 https://www.proactiveinvestors.com.au/companies/news/171675/point-loma-investor-madalena-sells-c258000-worth-of-shares-171675.html
<![CDATA[News - Point Loma highlighted among growth stocks to watch by Mackie ]]> https://www.proactiveinvestors.com.au/companies/news/171542/point-loma-highlighted-among-growth-stocks-to-watch-by-mackie-171542.html Alberta-focused oiler Point Loma Resources Resources Ltd (CVE:PLX) was highlighted among stocks to watch in 2017, by broker Mackie.

Analyst Bill Newman has looked at growth stocks which he sees as under-leveraged and undervalued.

Point Loma issued a trading update on Friday, in which it revealed another step-up in output and said the increase in oil and natural gas prices would have a positive impact on its 2017 cashflow.

"With our expectations for an improved commodity and investment climate, we highlight two domestic companies (Point Loma Resources and Prairie Provident Resources), and two international oil and gas companies (Condor Petroleum and TAG Oil) that have similar strengths that should allow each to prosper in 2017," said Newman.

Strong balance sheets

These four companies have strong balance sheets to weather weaker commodities prices and take advantage of acquisition opportunities, he said.

They also have strong production growth potential and low cost structures which could amplify returns in a rising commodity prices environment.

Thirdly, they  are highly undervalued with the potential for significant returns upon achieving milestones, said the analyst.

He notes that oil prices last year were highly volatile but closed near to a yearly high with the OPEC production cut agreement reached at the end of November.

Expect higher oil prices

"We expect oil prices to trend higher in 2017 as the market moves closure to balance," he added.

Producer Prairie Provident Resources (TSE: PPR) says its assets consist of attractively priced light and medium oil with associated natural gas.

The focus is the Wheatland and Princess properties in Southern Alberta and its Evi area  in the Peace River Arch area of Northern Alberta.

Meanwhile, Point Loma was producing around 620 boe/d (barrels of oil equivalent per day) at year end, consisting of around 55% oil and natural gas liquids.

Newman rates Point Loma a 'buy' with a $1 price target.

It is a rapidly growing firm with a large concentrated land base in west central Alberta, he said.

"The company holds an average 78% working interest and operatorship in 162,233 acres of land that is prospective for conventional oil and gas within the multi-zone Manville trend.

"Point Loma has identified 67 bypassed pay opportunities for horizontal well locations and an inventory of over 400 follow up locations (unrisked) which is expected to provide years of stable per share growth."

Prairie Provident is also rated 'buy' with a $2 target.

Mackie expects expect significant near term production growth, with an estimated Q4/16 average rate of around 4,475 boe/d (barrel of oil equivalent per day) increasing to 5,000 boe/d by year-end 2016.

"In 2017, PPR has an active development drilling program planned with the majority of drilling occurring in the Wheatland core area and combined with an expanded water flood program at its Evi property we expect the company to exit 2017 at over 6,000 boe/d," added the broker.

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Thu, 12 Jan 2017 07:06:00 +1100 https://www.proactiveinvestors.com.au/companies/news/171542/point-loma-highlighted-among-growth-stocks-to-watch-by-mackie-171542.html
<![CDATA[News - Point Loma Resources starts producing from Nordegg well ]]> https://www.proactiveinvestors.com.au/companies/news/171352/point-loma-resources-starts-producing-from-nordegg-well-171352.html Point Loma Resources Ltd (CVE:PLX) has told investors that production is now underway from the Nordegg pool discovery well in the West Cove area of central Alberta.

In a statement it said that the well, tagged 5-31-55-6W5M, has been producing since December 22 and it added that the group production rate averaged at 570 barrels oil equivalent per day, comprising 58% oil and natural gas liquids.

This represents a higher than forecast production mix of liquids versus natural gas which will yield better netback on production.

The company noted that during this period two wells were offline, and it is continuing to optimise its existing base production.

Operations continue with the next well tie in – for the Thorsby 11-18-49-1W5M Glauconitic well – is due in early 2017, it is working to re-activate previously suspended production (amounting to 120 barrels per day), and it is preparing new drilling operations also slated for the first half.

Meanwhile, Point Loma was reiterated a Buy with a 12-month target price of C$1.00 by brokers at Mackie Research on Monday.

“We expect Point Loma’s production to increase to over 800 boe/d in Q1/17 and to increase to 1,250 boe/d by year-end through drilling and well recompletions. The company is also actively reviewing acquisition opportunities within its core areas that could materially increase production, reserves and drilling location inventory,” Mackie said in a note.

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Mon, 09 Jan 2017 11:41:00 +1100 https://www.proactiveinvestors.com.au/companies/news/171352/point-loma-resources-starts-producing-from-nordegg-well-171352.html
<![CDATA[News - Point Loma shares up after tie-in of new well, update on operations ]]> https://www.proactiveinvestors.com.au/companies/news/171280/point-loma-shares-up-after-tie-in-of-new-well-update-on-operations-171280.html Alberta focused oil group Point Loma Resources Ltd (CVE:PLX) shares were more than 2% higher on Friday after the company said it had achieved another step in production increases with the tie-in of the 5-31 well which will set up additional development drilling in the West Cove area.

Point Loma was originally targeting a year-end exit production rate of approximately 700 boepd. Although the actual year-end production rate is lower than anticipated on a boe basis, the production mix of oil and NGLs has substantially increased to 55% from the forecast 40% and will translate into higher netbacks per boe.

The recent increase in oil and natural gas prices will also have a positive impact on the company’s 2017 cash flow from operations.

 Among highlights of its operational update:

Tie-in of 5-31-55-6W5M Nordegg new pool discovery well is complete and production commenced on December 22 Point Loma achieved a year-end productivity of approximately 620 boe/d, comprised of approximately 55% oil and natural gas liquids This higher than forecast production mix of liquids versus natural gas will yield improved netbacks for Point Loma Point Loma is continuing with the tie-in plans for the Thorsby 11-18-49-1W5M Glauconitic well in early 2017 at an anticipated initial producing rate of 100 boe/d The company is working to re-activate previously suspended production of approximately 120 boe/d in the Leaman area through existing infrastructure Point Loma intends to initiate drilling operations in the first half of 2017

Point Loma shares were up 2.2% at C$0.46 on Friday.

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Fri, 06 Jan 2017 15:46:00 +1100 https://www.proactiveinvestors.com.au/companies/news/171280/point-loma-shares-up-after-tie-in-of-new-well-update-on-operations-171280.html
<![CDATA[News - Point Loma issues 37,500 shares for services ]]> https://www.proactiveinvestors.com.au/companies/news/171106/point-loma-issues-37500-shares-for-services-171106.html Alberta focused oiler Point Loma Resources Ltd (CVE:PLX) has issued an aggregate of 37,500 common shares to eight of its senior officers and employees, with a value of no more than $2,500 per month for each such officer or employee, for the month ended Dec. 31.

The common shares were issued at the TSX Venture Exchange closing share price for Dec. 30 of 44 cents.

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Tue, 03 Jan 2017 13:48:00 +1100 https://www.proactiveinvestors.com.au/companies/news/171106/point-loma-issues-37500-shares-for-services-171106.html
<![CDATA[News - Point Loma Resources boosts production with savvy acquisition ]]> https://www.proactiveinvestors.com.au/companies/news/170881/point-loma-resources-boosts-production-with-savvy-acquisition-170881.html Alberta focused oiler Point Loma Resources Ltd (CVE:PLX) has bumped up production by 40 barrels of oil equivalent a day with the acquisition of an unnamed private company for C$500,000-worth of shares.

The new output is split equally between oil and natural gas liquids and the deal pushes the company along the road towards its near-term target of 800 barrels a day.

“With this acquisition Point Loma has again demonstrated the ability to find quality assets in line with our previous deal metrics,” said chief executive Terry Meek.

“Transactions of this nature will continue to build shareholder value as Point Loma develops the Mannville trend in west central Alberta.” 

Point Loma is sitting on 162,000 acres in west-central Alberta that are host to 400 potential drill locations into the Mannville and Mississippian formations.

Analysts and investors are expecting Point Loma to drill one Mannville well in early 2017, taking output above 1,000 barrels a day, with a second development well later, getting it to 1,250 barrels.

The team behind the company is a supremely experienced one. CEO Meek helped drive Thunder Energy to a $600mln exit and was one of the founders of coal bed methane specialist Ember Energy.

Serial entrepreneur Kevin Angus, meanwhile, was instrumental in setting up Painted Pony Petroleum (market cap $1bn) as well Mustang Resources, Pegasus Oil & Gas and Surge Energy.

Meek said in a recent Proactive interview he and his colleagues have looked at opportunities that could add 10,000 barrels a day – though it is fair to say not all of them fit the company’s exacting requirements.

In what is a buyer’s market, the veteran oil man is unwilling to pay more than three-times cash flow.

The potential deals themselves have ranged from the small, bolt-on variety to the transformative.

So there is plenty of scope to create a business of decent scale. By growing a significant operation, the company itself, which it must be said has flown under the radar thus far, may achieve a slightly healthier stock market rating than it commands currently.

This is a company that is heavily leveraged to an upswing in the oil price, while every barrel added to output ought to feed through to the market capitalization.

Mackie Research initiated coverage of Point Loma with a ‘buy’ recommendation, pointing out the west-central Alberta oil and gas specialist is trading at a significant discount to its peers.

Analyst Bill Newman has worked out the company is valued at less than two-times cash flow – well below the sector average of 5.25-times.

He reckons Point Loma is worth C$1 a share, compared with a current price of 41 cents.

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Thu, 22 Dec 2016 10:02:00 +1100 https://www.proactiveinvestors.com.au/companies/news/170881/point-loma-resources-boosts-production-with-savvy-acquisition-170881.html
<![CDATA[News - Point Loma investors Yurko, Kasten buy C$3mln debenture from Madalena Energy ]]> https://www.proactiveinvestors.com.au/companies/news/170816/point-loma-investors-yurko-kasten-buy-c3mln-debenture-from-madalena-energy-170816.html Richard Yurko and Kasten Resources Inc. snapped up for investment purposes a C$3-million senior subordinate secured convertible debenture of Point Loma Resources Ltd. (CVE:PLX) from Madalena Energy Inc. (CVE:MVN) for an aggregate purchase price of C$700,000.

The convertible debenture was acquired in a private purchase and sale under the accredited investor prospectus exemption.

The principal amount of the convertible debenture was reduced to C$2.5mln.

The convertible debenture was reissued as two debentures in the principal amount of C$1.25mln to each of the purchasers (the new convertible debentures).

The new convertible debentures will rank pari passu to Point Loma's 7% junior subordinate secured convertible debentures issued on June 28.

The new convertible debentures have a maturity date of June 28, 2021, and bear interest at a rate of 3% per annum on the principal amount. An origination fee equal to 3% of the principal amount is also payable by Point Loma upon maturity of the new convertible debentures. The principal amount, along with interest accrued, and the origination fee may be converted into common shares of Point Loma at a price of 50 cents per share.

Prior to the issuance of the new convertible debentures, Yurko owned 1,008,350 Point Loma common shares, representing approximately 4.64% of the issued and outstanding common shares of Point Loma. If Yurko chose to convert the full amount of the new convertible debenture into common shares of Point Loma at maturity, Yurko would hold an aggregate of 3,981,535 Point Loma common shares, representing approximately 16.1% of the issued and outstanding common shares of Point Loma on a fully diluted basis.

Kasten is wholly owned by Al Kroontje. Owner Kroontje holds 450,000 Point Loma common shares and a junior convertible debenture in the principal amount of C$325,000. If Kroontje chose to convert the full amount of the junior convertible debenture into common shares of Point Loma at maturity, he would hold a total of 1,437,106 common shares of Point Loma, representing approximately 6.32% of the issued and outstanding common shares of Point Loma on a fully diluted basis.

Madalena Energy sold its C$3mln convertible debenture of Point Loma Resources Ltd. for cash proceeds of $522,000 (C$700,000). The convertible debenture was part of the consideration Madalena received when the non-core Canadian assets were sold on May 1. The carrying value of the convertible debenture at Sept. 30 was $1.9mln (C$2.6mln). Read more.

The balance of the consideration Madalena received for its Canadian assets was 6,244,814 common shares of Point Loma, 10% of which are currently free trading. The balance of the shares is escrowed and will be released at six-month intervals commencing Dec. 30.

Madalena Energy shares were up 22.2% at C$0.11 on Wednesday, while Point Loma Resources shares were 7.9% higher at C$0.41.

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Wed, 21 Dec 2016 15:25:00 +1100 https://www.proactiveinvestors.com.au/companies/news/170816/point-loma-investors-yurko-kasten-buy-c3mln-debenture-from-madalena-energy-170816.html
<![CDATA[News - Point Loma trading at significant discount to peers, reckons Mackie ]]> https://www.proactiveinvestors.com.au/companies/news/170415/point-loma-trading-at-significant-discount-to-peers-reckons-mackie-170415.html Mackie Research has initiated coverage of Point Loma Resources (CVE:PLX) with a ‘buy’ recommendation, pointing out the west-central Alberta oil and gas specialist is trading at a significant discount to its peers.

Analyst Bill Newman has worked out the company is valued at less than two-times cash flow – well below the sector average of 5.25-times.

He reckons Point Loma is worth C$1 a share, compared with a current price of 38.5 cents.

The plus points are the that company has production of 500 barrels of oil a day, rising to 800 barrels in January allied to an impressive land holding.

READ: Savvy strategy and experience the key to success READ: In-detail analysis of Point Loma 

It is sitting on over 162,000 acres that are host to 400 potential drill locations into the Mannville and Mississippian formations.

The analyst is expecting Point Loma to drill one Mannville well in early 2017, taking output above 1,000 barrels a day, with a second development well later, getting it to 1,250 barrels.

Newman also reckons there is “big upside” in the Jurassic formation.

“At current trading levels investors get free option on company controlled 110 million barrel oil pool in place and 30 bln cubic feet gas pool,” he told investors in a 20-page circular.

Overlooked by the market too is the management’s experience.

Chief executive Terry Meek helped drive Thunder Energy to a $600mln exit and was one of the founders of coal bed methane specialist Ember Energy.

Serial entrepreneur Kevin Angus, meanwhile, was instrumental in setting up Painted Pony Petroleum (market cap $1bn) as well Mustang Resources, Pegasus Oil & Gas and Surge Energy.

Point Loma’s senior team holds around 10% of the company and bought in at an average cost of between 55 and 59 cents a share.

“The significant level of ownership aligns the interest of management with shareholders,” Newman said.

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Tue, 13 Dec 2016 09:21:00 +1100 https://www.proactiveinvestors.com.au/companies/news/170415/point-loma-trading-at-significant-discount-to-peers-reckons-mackie-170415.html
<![CDATA[News - Point Loma looking to lift output with new well tie-ins ]]> https://www.proactiveinvestors.com.au/companies/news/169485/point-loma-looking-to-lift-output-with-new-well-tie-ins-169485.html Point Loma Resources Ltd (CVE:PLX) averaged output of 225 barrels of oil equivalent per day (boe/d) in its third quarter as it continues to ramp up activity in Alberta, Canada.

Moreover, the group improved output rates of the existing wells with a series of enhancements that allowed it to exit the month at 500 boe/d.

The oil and gas group was established in June this year via the reverse take-over of First Mountain Exploration Inc, when it acquired the assets in Paddle River area  for a Total of $5.5 million.

Capital expenditures of $2.4mln were incurred during the three months to end September, mainly on facilities to re-activate production in the area.

Gross revenue was $629,000, while cash flow used in operations stood at $167,000. In keeping with a firm at this stage the net loss was $124,000.

As reported earlier, Point Loma is currently executing the second phase of activity with the tie-in of a previously standing Nordegg well in the West Cove area

Shares in the firm jumped this week after it conducted an extended flow test of the 5-31-55-6W5 Nordegg oil well and received an approved licence to tie in the well and kick start production.

Total fluid recovered was 1,760 barrels. Average oil rate was 150 barrels per day. Meanwhile, the natural gas rate was 500,000 cubic feet per day (80 barrels of oil equivalent per day).

With the addition of this new well Point Loma is poised to continue expanding production above 700 boe/d.

Point Loma is also under way with the survey and pipeline plans to tie in the Thorsby glauconite well 11-18-49-1W5 shortly after the completing the tie-in of the Nordegg well.

The Thorsby well was previously flow tested and is anticipated to increase Point Loma's production levels to a year-end exit rate of greater than 800 boe/d.

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Thu, 24 Nov 2016 09:07:00 +1100 https://www.proactiveinvestors.com.au/companies/news/169485/point-loma-looking-to-lift-output-with-new-well-tie-ins-169485.html
<![CDATA[News - Point Loma Resources' savvy growth strategy based on experience ]]> https://www.proactiveinvestors.com.au/companies/news/169484/point-loma-resources-savvy-growth-strategy-based-on-experience-169484.html They probably won’t thank me for revealing this little nugget of biographical detail, but between them the two principals of Point Loma Resources (CVE:PLX) have more than six decades of experience.

Chief executive Terry Meek helped drive Thunder Energy to a $600mln exit and was one of the founders of coal bed methane specialist Ember Energy.

Serial entrepreneur Kevin Angus, meanwhile, was instrumental in setting up Painted Pony Petroleum (market cap $1bn) as well Mustang Resources, Pegasus Oil & Gas and Surge Energy.

In short both have impressive CVs. But what they also possess, alongside a few grey hairs, is experience and a track record of creating businesses from the bottom up.

You can’t buy that and certainly can’t teach it; you can, however, see all that nous at work at Point Loma.

Quietly the pair and their team have amassed a land position in west-central Alberta that’s host to existing production and ripe for development.

It’s not the hottest area in for oil and gas in Canada, but then that’s the point.

Asset prices are cheaper and there are deals to be struck.

Point Loma’s strategy is two-fold: easy-win ‘behind-the-pipe’ tie-ins (which will help lift output above 800 barrels a day by the year-end), while also tapping the potential of the Mannville and Mississippian formations.

While relatively shallow at 1,500-2,000 metres, these particular horizons were historically avoided because the technology wasn’t available to exploit the ‘tight’ accumulations of oil and gas.

The advent of modern, horizontal drilling and fracking techniques has changed all of this.

Expansion plans and funding

The company has amassed 140,000 net acres and has identified 300 potential drill locations.

The cost of a 15-stage fracked well is put at $1.4mln to drill and complete, while a further $350,000 is needed to ‘tie-in’ the well. 

Initial production rates should come in at 260 barrels of oil equivalent  a day, providing for a payback on the initial investment of between 18 months and two years .

The company recently raised $2mln via an oversubscribed private placement of stock at 35 cents.

This will be used to drill horizontal wells early next year.

Point Loma has lifted production to around 500 barrels a day of oil equivalent from 150 in July. The current mix of light oil and liquid rich gas provides a ‘net-back’ of around US$13 a barrel of oil equivalent.

There are opportunities to increase production to 5-10,000 barrels a day, and in fact Meek thinks it’s possible to get to 2,000 barrels by the end of 2017.

Read the group's third quarter results here 

Financing that growth should become a little easier once the company has updated its reserves report.

This will allow it to go out and borrow against those reserves, rather than solely relying on investors to fund growth.

It should be pointed out that Point Loma is currently debt-free, unlike some of the longer-in-the-tooth operators that are currently shedding assets to keep up with payment schedules on those liabilities.

Opportunities to grow to 10,000 barrels per day

Meek says he and his colleagues have looked at opportunities that could add 10,000 barrels a day – though it is fair to say not all of them fit the company’s exacting requirements.

In what is a buyer’s market, the veteran oil man is unwilling to pay more than three-times cash flow.

The opportunities themselves have ranged from the small, bolt-on variety to the transformative.

So there is plenty of scope to create a business of decent scale.

By growing a significant operation, the company itself, which it must be said has flown under the radar thus far, may achieve a slightly healthier stock market rating than it commands currently.

Heavily leveraged to an upswing in oil prices

This is a company that is heavily leveraged to an upswing in the oil price, while every barrel added to output ought to feed through to the market capitalization.

At the moment its enterprize value is $12.3mln.

Point Loma in the summer carried out its own comparative analysis that showed its assets were worth just over $13,000 per barrel of daily oil production.

Transactions in the sector range from $20,000 a barrel right the way through to $60,000 a barrel.

Narrowing the discount to that lower valuation would require a significant rise in the share price.

Of course this won’t happen overnight, but then the market won’t allow the anomaly to continue indefinitely.

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Thu, 24 Nov 2016 08:39:00 +1100 https://www.proactiveinvestors.com.au/companies/news/169484/point-loma-resources-savvy-growth-strategy-based-on-experience-169484.html
<![CDATA[News - Point Loma gets OK to tie in Nordegg well, shares jump ]]> https://www.proactiveinvestors.com.au/companies/news/169286/point-loma-gets-ok-to-tie-in-nordegg-well-shares-jump-169286.html Point Loma Resources Ltd (CVE:PLX) shares jumped nearly 8% on Monday after the company said it has conducted an extended flow test of the 5-31-55-6W5 Nordegg oil well and received an approved licence to tie in the well and commence production.

Point Loma is a public oil and gas exploration and development company focusing on conventional oil and gas reservoirs in central Alberta. Point Loma will utilize its experience to acquire, drill and develop assets with potential for horizontal multistage fracturing technology and exploit opportunities for secondary recovery.

The pipeline application to tie in the 5-31-55-6W5M Nordegg well has been approved and Point Loma intends to commence construction on the pipeline immediately which is estimated to be completed in approximately three weeks.

The 5-31 Nordegg well was the subject of an extended test to confirm appropriate surface facilities.

Prior to the test Point Loma had successfully reconfigured the well to optimize the sizing of the surface equipment. The well was flowed via production from the Nordegg formation test under restricted rates for six days with the flow averaging as follows (all load fluid was recovered prior).

Total fluid recovered was 1,760 barrels. Average oil rate was 150 barrels per day. Meanwhile, the natural gas rate was 500,000 cubic feet per day (80 barrels of oil equivalent per day).

With the addition of this new well Point Loma is poised to continue its expanding production base to a level above 700 boe/d. Point Loma is also under way with the survey and pipeline plans to tie in the Thorsby glauconite well 11-18-49-1W5 shortly after the completing the tie-in of the Nordegg well. The Thorsby well was previously flow tested and is anticipated to increase Point Loma's production levels to a year-end exit rate of greater than 800 boe/d.

Point Loma shares rise by 7.9% to C$0.34 on Monday.

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Mon, 21 Nov 2016 15:27:00 +1100 https://www.proactiveinvestors.com.au/companies/news/169286/point-loma-gets-ok-to-tie-in-nordegg-well-shares-jump-169286.html