CALGARY, Alberta, Oct. 11, 2017 (GLOBE NEWSWIRE) — Point Loma Resources Ltd. (TSX VENTURE:PLX) (the “Corporation” or “Point Loma”) which has captured over 160,000 net acres across the multi-zone Mannville, Nordegg and Banff fairway’s of west central Alberta is pleased to announce recent and planned future production additions and an update of core area activities.
Fourth Quarter Outlook
In the fourth quarter of 2017, the Corporation will be activating many previously non-producing properties and looking to increase the product weighting towards oil and NGL’s. Point Loma has been preparing for these increases through the summer months after the closing of two financings in May and June of 2017. These additions should advance the Corporation to the next level of its growth curve and provide a shift into a positive cash generating position.
Thorsby Area, Twp 49 Rge 1W5: Upcoming Horizontal Completion and Test on Newly Drilled Mannville Play Targeting Sparky Oil
Point Loma has drilled and cased a horizontal Sparky oil well in the area where a completion (multi-stage frac and test) is planned for mid-October. Once completed, it is anticipated that the Sparky well will be pipeline connected on the same surface lease as the previously drilled and tested Glauconitic well in section 18-49-1W5. The two wells will flow to an area operator’s facility as a combined emulsion line. Upon commencement of production these wells are expected to establish Point Loma in the area and provide a base for potential future development of an additional four to six horizontal drilling opportunities on existing lands. Production is anticipated to commence in early November 2017.
West Cove Area, Twp 55, Rge 6W5: Targeting Oil in the Nordegg and Banff Plays
The 5-31-55-6W5 well was placed on production October 1, 2017 and Point Loma is working to stabilize the run time on the well as the gas and fluid combination is now produced as a pumping oil well. As announced previously (September 18, 2017), this production is from the upper Nordegg zone which is viewed as prospective for future horizontal oil development opportunities. The well pad is configured for two additional wells that would produce through the existing pipeline which will enhance the economics of the future wells. Point Loma also controls the surrounding lands which could lead to a larger development opportunity. Point Loma is currently evaluating the potential of using 3D seismic to further delineate the pool and assist in delineating a potential Banff oil target underlying the Nordegg discovery. Point Loma recently added eight sections of land on the Banff prospect at a Crown land sale.
Paddle River Area, Twp 55/56 Rge 7W5: Ongoing Horizontal Development in the Mannville Ostracod A Pool
The Corporation recently drilled a horizontal lateral development well into the Ostracod A pool that is currently the focus of Point Loma production in the area. As expected, the lateral encountered reservoir and oil shows to a total measured depth of approximately 2800meters. During casing operations, the well encountered tight sections that ultimately required the lateral to be cemented back to 1,300 meters depth. Point Loma is now planning to side track and re-drill the identified oil pay zone once a full operational review is completed.
In addition, the Corporation anticipates that the previously announced acquired horizontal oil well 12-4-56-7W5 will be transferred and placed on production in mid-October. The 12-4 well was drilled, completed and tied-in in 2014 and not placed on production due to area facility constraints at the time that have now been resolved. Point Loma believes the well should perform at the upper end of the horizontal wells drilled into the Ostracod A pool to date. Point Loma will also explore re-activation or re-entry of the second well purchased in the transaction for further production additions. Two incremental horizontal drilling opportunities are also supported on the land acquired.
Thornbury Area, Twp 79-81, Rges 13-15W4: Files Development Plan to Tie-in and Reactivate Existing Wells in First Quarter 2018
The Corporation has filed a development plan to undertake pipelining and reconnection of multiple wells in the Thornbury area during the first quarter of 2018. Capital investment of approximately $360,000 is required to reconnect approximately 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. Point Loma also has plans to abandon several wells in the area while operations are underway that is expected to ultimately reduce operating costs and liabilities.
“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, President and CEO 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.”
About Point Loma
Point Loma is a public oil and gas development and exploration company focused on horizontally exploiting conventional oil and gas reservoirs in west central Alberta. Point Loma’s business plan is to utilize its experience to drill, develop and acquire accretive assets with potential for horizontal multi-stage frac technology and exploit opportunities for secondary recovery. For more information and our current presentation please visit Point Loma’s website at www.pointloma.ca or Point Loma’s profile on the System for Electronic Document Analysis and Retrieval website at www.sedar.com.
For further information, please contact:
Terry Meek
President and CEO
Telephone: (403) 705-5051 ext. 444
[email protected]
Kevin Angus
Executive Vice President, Business Development
Telephone: (403) 705-5051 ext. 440
[email protected]
Randall Boyd
Vice President Finance and CFO
Telephone: (403) 705-5051 ext. 443
[email protected]
A Note Regarding Forward-Looking Information
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws, including without limitation, statements pertaining to Point Loma’s expectations as to production and future potential production increases, as well as increases in cash flow and the timing thereof; anticipated activations and activities; future gas processing rates;future product weightings; future exploration and development opportunities; Point Loma’s expectations as to future prices of oil and natural gas; the focus of Point Loma’s management team and go-forward strategy.
The use of any of the words “will”, “expects”, “believe”, “plans”, “potential” and similar expressions are intended to identify forward-looking statements or information. Although Point Loma believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because Point Loma cannot give assurance that they will prove to be correct.
Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve and resource estimates; the inability of Point Loma to bring additional production on stream or in the anticipated quantities disclosed herein; the uncertainty of estimates and projections relating to reserves, resources, production, costs and expenses; health, safety and environmental risks; commodity price and exchange rate fluctuations; marketing and transportation; loss of markets; environmental risks; competition; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; ability to access sufficient capital from internal and external sources; changes in legislation, including but not limited to tax laws, royalties and environmental regulations, actual production from the acquired assets may be greater or less than estimates. Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release in order to provide security holders with a more complete perspective on Point Loma’s future operations and such information may not be appropriate for other purposes.
The forward-looking statements and information contained in this press release are made as of the date hereof and Point Loma does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Oil and Gas Information
“BOEs” may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (6 Mcf: 1 bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. As the value ratio between natural gas and crude oil based on the current prices of natural gas and crude oil is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
References in this press release to production test rates, initial test production rates, and other short-term production rates are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long term performance or of ultimate recovery. Additionally, such rates may also include recovered “load oil” fluids used in well completion stimulation. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for Point Loma. A pressure transient analysis or well-test interpretation has not been carried out in respect of all wells. Accordingly, the Corporation cautions that the test results should be considered to be preliminary.