The Calgary-based oil company worked with Schlumberger Canada Ltd to complete all three phases of the company’s petrochemical modeling study geared towards increasing oil recovery from the Biogray Niksu D and E pools.
Enhanced oil recovery is the process of increasing the amount of oil that can be recovered from a reservoir, usually by injecting a substance into an existing well to increase pressure and reduce oil viscosity.
The three phases of the detailed EOR study are the first-ever three-dimensional analysis on the Nisku D and E pools.
The resulting detailed simulations allowed the company to position the solvent injectors in the most efficient locations on the wells, as well as model the pressures and rates of fluids to maximize recovery.
Pulse ultimately decided on a simulation that puts a peak estimated production rate at Niksu D of approximately 2,000 barrels of oil per day and increasing to 5,000 when Niksu E is included in the model.
In this scenario, Nisku D would begin production and generate cash flow, while the E-pool would follow three years later. Subject to sufficient capital, Pulse has the option to accelerate the EOR program at Nisku E to coincide with development at the D pool.
Forecast production would peak within two years of EOR implementation and continue for approximately 10 years, with a cooldown period estimated to continue for another 10 to 20 years afterwards, Pulse said in a statement.
"Using modern 3-D seismic and cutting-edge digital visualization software is a first for these 40-year old pools,” said Drew Cadenhead, Pulse’s CEO.
“The resultant increase in Discovered Petroleum Initially In Place led to a significant increase to our internal forecasts for potential recoveries from our two pools. Adding these types of growth opportunities with very little or no exploration risk fits the Pulse game plan perfectly. These are different times in our industry, and we feel low-risk value creation is key for start-ups like ourselves to prosper."
Shares of Pulse slipped 2.9% at C$0.17 in Toronto by midday Tuesday.
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