Pulse Oil Corp (CVE:PU) told investors it expects to have both of its new wells at the Queenstown field in Alberta on full-time production in late Q1 2019 or early Q2.
As reported early in January, the early signs of a second exploration well showed promise, with high gas readings and visible oil staining encountered.
In December last year, indicative results of the oiler’s first well at the field in southern Alberta had prompted the firm to commit immediately to a second.
Now, the decision has been made to shut the wells in and begin permanent facility and pipeline construction to prepare the wells for fulltime production, Pulse said in a statement Wednesday.
"We are encouraged with the initial testing results of our first two wells," said Pulse president Drew Cadenhead. "We have drilled over 2 km of quality reservoir rock between the two wells, and initial rates of completion fluid flow back and consistently rising oil cuts encouraged the experienced Pulse team to save any further testing costs by investing those dollars straight into permanent production equipment.
He added that the company expected to transition from completion fluid recovery to hydrocarbon production within a few weeks after construction was finished.
Update on Bigoray project
Cadenhead added that with the group's recent financing in place, and anticipated growing cash flow from the Queenstown wells, Pulse could now accelerate its EOR (enhanced oil recovery) implementation work at Bigoray and combine the permanent EOR facility work, new injection well drilling, and re-activation of existing production wells into a single project.
"This operational field work is now underway and scheduled for completion by the time final regulatory approval for the EOR is granted later this year," he said.
Pulse owns 100% interests in the Bigoray area of Alberta, which includes two Nisku oil Pinnacle Reefs as well as 100% interests in producing assets.
Shares were unchanged at $0.165.
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