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Point Loma Resources starts drilling at Rex horizontal well, eyes significant boost to output

Calgary-based Point Loma is the operator, while Salt Bush Energy is the joint venture partner on the well
oil well rig
The Point Loma well has the potential to significantly increase the group's current oil and natural gas liquids production

Junior oil firm Point Loma Resources Ltd (CVE:PLX) said it has begun drilling, or spudded, the Rex oil horizontal well in Alberta on November 24.

The well has the potential to significantly increase the group's current oil and natural gas liquids (NGL) production, enhance the growing reserves base and open up new oil development opportunities.

Calgary-based Point Loma is the operator, while Salt Bush Energy is the joint venture partner on the well.

READ: Point Loma Resources reports 84% boost in 3Q petroleum and natural gas revenue

Notably, the Rex target at Wizard Lake will be the first horizontal well drilled in the multi-well program.

It is analogous to the Leduc-area Rex production, which has attracted the attention of other industry operators and led to highly commercial wells (250 to 300 barrels of oil equivalent per day, at 80% oil) as this large oil discovery continues to be exploited.

The target zone on the Point Loma lands is thicker and has similar porosity to the offset development.

Point Loma intends to drill a 1,300 metre lateral with 30 plus completion ports.

Internal mapping indicates a potential pool size of approximately 40 million to 60 million barrels of original oil in place (OOIP). Excitingly, this would result in 15 to 20 follow-up opportunities with success.

Point Loma controls more than 160,000 net acres and has a broad inventory of oil opportunities in the Mannville (Upper and Lower), Banff, Nordegg, and Duvernay Shale formations in Alberta.

Last Friday, it revealed that third-quarter petroleum and natural gas revenue increased 84% as average daily production advanced.

The Calgary-based company reported that average daily production rose to 977 boepd, up more than 60% from a year earlier. Oil and natural gas liquid (NGL) production climbed to 272 barrels per day, up 72% from a year earlier.

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