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Point Loma set to complete Rex well by the year-end

The second well of the program is expected to be drilled in the new year
drilling equipment
The company has 160,000 net acres in West-Central Alberta that are host to 66 by-pass drilling opportunities

Point Loma Resources Ltd (CVE:PLX) said it expects the Rex oil well in Alberta to be completed and evaluated before the year-end.

The horizontal drill section was cased over the weekend ahead of 28 frac stages at 30 tonnes per stage.

READ: Point Loma Resources closes sale of non-core gas asset

READ: The company's latest investor presentation

“Given the potential noted during the drilling of the well Point Loma has elected to focus on enhancing the completion of this well utilizing larger size fracs than originally planned to optimize the production capability from the zone,” the company said in an update.

Investors were also told it now plans to limit the current drilling program to the Rex well at Wizard Lake in order to allow for a “more optimal completion and to preserve capital in the current challenging commodity market.”

The second well of the program is licensed and is expected to be drilled in the new year.

Large land package

The company has 160,000 net acres in West-Central Alberta that are host to 66 by-pass drilling opportunities tapping tried and tested hydrocarbon-bearing zones such as the Upper and Lower Mannville, the Nordegg, Banff and Duvernay Shale.

It is also sitting on 550 follow-up drilling opportunities.

In its latest presentation, Point Loma said output was headed to around 1,000 barrels per day with the cost of production declining sharply to C$11.64.

Rex, an Upper Mannville play that cost $1.2mln to drill and will cost a further $1.1mln to complete, could add 200-400 barrels a day. There are 20 follow-on opportunities in the immediate Rex area.

Point Loma's shares added 7.2% to $0.23 in Monday trading on the Toronto exchange.

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