Pulse Oil Corp. Announces 2018 Year-end Results: a Year of Growth; Second Bigoray Well Drilled and Cased for Production

Source Press Release
Company Pulse Oil Corp. 
Tags Upstream Activities, Capital Spending, Strategy - Corporate, Financial & Operating Data
Date May 01, 2019

Pulse Oil Corp. ("Pulse" or the "Company") (TSX-V: PUL and PUL.WT) is pleased to report the Company's consolidated financial statements for the year ended December 31, 2018("FY 2018") and accompanying management's discussion and analysis are now filed and available for viewing under the Company's profile at  . Pulse's first full year as a public company resulted in significant growth in all measured corporate financial metrics, including its 2018 year-end reserves as evaluated by McDaniel and Associates Ltd. ("McDaniel"). Below are highlights of FY 2018, Pulse encourages readers to access full versions of the filings at .

2018 Financial Highlights:

  • Pulse increased its revenue by 378% to $2,670,743.
  • Cash flow from operations increased to $1,908,860 for FY 2018 compared to negative cash flow from operations of $877,504 last year.
  • On November 20, 2018, Pulse concurrently closed a best-efforts public offering and a private placement for total gross proceeds of $11,300,520.
  • Pulse ended FY 2018 with $10,286,827 in cash and $7,034,526 in working capital compared to $859,656 in cash and $715,786 in working capital last year.
  • The company recorded net income for the year of $46,172 compared to a net loss of $1,211,932 last year.

2018 Operating Highlights:

  • Increased proved ("1p") reserve value by 40% and 2p by 37% when compared to FY 2017. Reserve estimates, with an effective date of December 31, 2018, on Pulse's interests within the Bigoray and Queenstown operating areas were assessed by McDaniel, a qualified independent reserves evaluator, in accordance with National Instrument 51-101 and the Canadian Oil and Gas Evaluation Handbook (the "Assessments").  The Assessments resulted in a pre-tax net present value of future net revenue of $33.4 million of proved plus probable ("2p") reserves and $21.5 million of 1p reserves, using a 10% discount rate to Pulse's net working interest.  The estimated value does not represent fair market value.
  • Phase 1 and 2 of the contracted Schlumberger Enhanced Oil Recovery study were completed in 2018; Phase 3 was completed in January 2019 leading to encouraging results as previously announced by Pulse.  
  • Throughout FY 2018, Pulse added production through reactivations at Bigoray, acquired certain wells from arms-length third parties and the Alberta Energy Regulator, negotiated surface access agreements and completed a geotechnical evaluation of 3-D seismic data that optimized the Queenstown asset and led to the drilling of Pulse's first two Queenstown oil wells.
  • In December 2018, Pulse drilled two light oil wells in Pulse's Queenstown asset followed by completion and initiation of permanent production in early 2019. As of the date of this release, the two wells continue to flow back a combination of load water associated with fracture treatments and sweet, light crude oil with oil cuts steadily increasing on a daily basis. It is expected to take a further 3-4 weeks for the wells to reach maximum oil rates, at which time the Company will report results.
  • Planned for the drilling of two new Bigoray oil wells in Q1 of 2019. Both wells are being completed and production testing is expected to begin in May 2019.

Pulse is also pleased to report its second Bigoray well has successfully reached total depth of 2705MD into the Nisku E pool. Results of this second well are encouraging with oil shows similar to the Nisku D pool well previously announced on April 23, 2019. Both wells have successfully defined undrained attic areas of the pinnacle reef pools and are now awaiting improved spring break-up weather conditions to initiate testing operations. Existing infrastructure will facilitate commencement of full-time production in Q2 of the 2019 fiscal year.

Garth Johnson, Pulse CEO, commented, "A busy year was had by everyone at Pulse, despite the challenging times producers faced in the Canadian oil and gas industry. Low oil prices, large differentials affecting oil sales prices and a year of political gamesmanship between many of the provinces of Canada fuelled these challenges. At Pulse, we embrace the discussion as it relates to the environment and the effort to make changes while also understanding the need for oil and gas in the coming years until a viable, cost-effective alternative is available around the world. This was our first full year as a publically traded company and we are happy to have achieved significant growth in revenue, cash flow from our operations, reserves and in net income. At the same time we accessed equity markets in a very difficult time and put that money to work. We have already drilled two wells at Queenstown that are now on permanent production via our recently installed facilities and pipelines. We also planned to advance our Bigoray EOR program and in Q1 2019 completed a Bigoray two well drilling program. We forecast solid results from both these programs that will enable us to advance our 2019 operations. As oil prices have strengthened, differentials have returned to normal levels, and a new government has been elected in Alberta, our timing to add production is lining up well and we look forward to working toward more success in the coming years. We thank those that have supported us this far."

Source: EvaluateEnergy® ©2020 EvaluateEnergy Ltd