Point Loma Resources Ltd's (CVE:PLX) (OTCMKTS:FMTNF) said it expects to begin building production facilities at its Rex oil discovery well in the second quarter of this year, as it unveiled its 2018 end-of-year reserves update, which notably showed total proved plus probable oil reserves had increased 92% year-over-year.
Wizard Lake HZ 16-17-48-27W4 Rex oil pool well in Alberta showed a top tier flow test at more than 90% oil, the junior oiler noted.
It tested at rates of more than 300 bpd (barrels per day) of oil with increasing oil cuts through the end of the testing period, which has led to substantial reserve bookings for the pool net to Point Loma.
In addition to proved plus probable non-producing reserves of 150 mbbl (thousand barrels), Point Loma received three additional proven undeveloped and one additional probable location booked to the pool. In total, the net proven and probable reserves booked were 525 mbbl of oil with a net present value at 10% of $8.8 million.
Highlights of the year-end reserves report included:
- Proved producing reserves increased 35% year over year.
- Total proved plus probable (2P) reserves came in at 5,284 mboe (thousand barrels of oil equivalent) and proved (1P) reserves of 2,967 mboe, an increase of 19% and decrease of 15%, respectively, since 2017 year-end.
- Discounted at 10%, the estimated 2P reserve has a value for Point Loma of $38.4 million and 1P reserve value of $21.3 million - an increase of 25% and decrease of 3%, respectively, since the end of 2017.
Notably, total proved plus probable oil reserves increased 92% and proved oil reserves increased 64% year-on-year, largely due to the Rex oil discovery, which was drilled and completed in late 2018.
Contact Giles at [email protected]
Follow him on Twitter @Gile74