CALGARY, AB--(Marketwired - January 09, 2017) - Point Loma Resources Ltd. (TSX VENTURE: PLX) (the "Corporation" or "Point Loma") is pleased to provide the following operational update;
- Tie-in of 5-31-55-6W5M Nordegg new pool discovery well is complete and production commenced on December 22, 2016.
- Point Loma achieved an average production rate of 570 boe/d during the period of December 24-31, 2016. The composition of the production was 58 percent oil and NGLs.
- Two existing wells were down during this time period and Point Loma is also continuing optimization of the existing base production.
- 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. An initial producing rate of approximately 100 boe/d is expected.
- The Corporation 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 which will begin the evaluation of our significant horizontal drilling inventory.
Point Loma has achieved another step in production increases with the tie-in of the 5-31 Nordegg well which will set up additional development drilling in the West Cove area of central Alberta. Point Loma is continuing to optimize the production from the 5-31 well as there are significant gas and fluid volumes being produced. This will be an ongoing process during the early production stages.
In the legacy operating areas, Point Loma was challenged with mechanical operational issues that have resulted in unexpected downtime. November weather further impacted operations with soft field conditions and then suddenly extreme cold temperatures made for a challenging environment to re-activate wells that encountered mechanical issues. The Corporation had the majority of wells back on production by the end of December and are working to get the balance on production in the month of January. While most wells have returned to production not all have returned to anticipated levels. Several of these wells may be capable of delivering increased production.
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.
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; the anticipated use of proceeds of the Offering; future gas processing rates; 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.