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Pulse Oil set for new cash flow as it plans two new Bigoray wells

Last updated: 03:34 20 Feb 2019 AEDT, First published: 21:44 19 Feb 2019 AEDT

Nodding donkeys
Pulse oil has assets in Alberta

Pulse Oil Corp (CVE:PU) is set to drill two new wells on its exciting Bigoray EOR (enhanced oil recovery) project acreage in Alberta this month or next after modelling has unexpectedly increased the amount of potential oil there.

Last month, independent modelling at the asset lifted the initial amount of estimated discovered petroleum in place (DPIIP) by 43.9%, the junior oiler said Tuesday.

READ: Pulse Oil expects both Queenstown fields to be in production late 1Q or early 2Q

Pulse’s EOR project relates to two Nisku D and Nisku E reef pools, where the plan is to use a technique called “miscible flooding” involve pumping in a solvent followed by a gas, which loosens up all the remaining oil, so it can be sucked out from the bottom of the reservoir.

Pulse's budget for the program had always included drilling two injection wells but hadn't expected these planned injection wells could also provide near-term production potential, new cash flow and early reserve booking for Pulse, it said in today's statement.

"Based on the exciting results of our geotechnical modelling project that has materially increased the estimated DPIIP contained within the Bigoray EOR boundaries, we will be drilling two new wells at Bigoray, one into the Nisku D pool and one into Nisku E," said Pulse President Drew Cadenhead on Tuesday.

New data

The company plans on drilling new "optimally placed" injection wells into each pool, and use this technical data to tap into previously unrecognized and undrained areas of the light oil reservoirs.

"We anticipate that these two new wells will give us the added benefit of immediate flush production, cash flow and new reserve bookings from virgin areas within our pools while all permanent EOR facilities and pipelines are being completed," Cadenhead added. "Once complete, we will convert these two new wells to solvent injector wells and continue the formal Enhanced Oil Recovery phase of our business plan."

Two low-risk development opportunities targeting these newly identified oil reservoir areas have now been approved for drilling before the Alberta winter break-up.

After the news, broker Mackie said: "The potential increase in the DPIIP resource estimate for the Nisku Reefs could be significant and the two development wells have the potential to test the newly identified oil reservoir areas as well as to add flush production and cash flow."

The broker repeated a 'speculative buy' rating and a $0.50 price target.

Pulse shares are unchanged in Toronto at $0.15 each.

Contact Giles at giles@proactiveinvestors.com

Pulse Oil planning for an enhanced recovery program at flagship Bigoray

Pulse Oil (CVE:PUL) President Drew Cadenhead and CEO Garth Johnson sat down with Steve Darling from Proactive Investors to talk about the work that was done this winter on their projects including their flagship Bigoray and how this set up the big works schedule for this summer. Cadenhead...

on 13/4/19