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Point Loma Resources boosted by plans to lift output in fourth quarter

At the Thorsby area, production is anticipated to begin from two wells in early November
Point Loma is an Alberta-focused oil junior

Point Loma Resources Ltd (CVE:PLX) is eyeing a shift into positive cash generation as it activates multiple non-producing properties in the fourth quarter.

Updating on operations, the Alberta-focused junior said the ramp up also comes after closing two financings in May and June of 2017.

Shares in Toronto added 1.79% to C$0.285 on Wednesday.

At the Thorsby area, production is anticipated to begin from two wells in early November after the horizontal Sparky oil well will be completed in mid-October.

Once completed, it is expected that the well will be pipeline connected on the same surface lease as the previously drilled and tested Glauconitic well.

At West Cove, the 5-31-55-6W5 well was placed on production on October 1 and Point Loma is now working to stabilize the run time as the gas and fluid combination is now produced as a pumping oil well.

The firm also controls the surrounding lands which could lead to a larger development opportunity, it noted.

At Paddle River, Point Loma is now planning to side track and re-drill the identified oil pay zone, following the latest well in the Ostracod A pool, once a full  review is completed.

In addition, the firm expects that the previously announced acquired horizontal oil well 12-4-56-7W5 will be transferred and placed on production in mid-October.

Finally, at the Thornbury area, PLX has filed a development plan to undertake pipelining and reconnection of multiple wells during the first quarter of 2018.

Capital investment of around C$360,000 is required to reconnect around 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.

"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, chief executive 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."


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