Point Loma Resources Ltd (CVE:PLX) shares jumped nearly 8% on Monday after the company said it has conducted an extended flow test of the 5-31-55-6W5 Nordegg oil well and received an approved licence to tie in the well and commence production.
Point Loma is a public oil and gas exploration and development company focusing on conventional oil and gas reservoirs in central Alberta. Point Loma will utilize its experience to acquire, drill and develop assets with potential for horizontal multistage fracturing technology and exploit opportunities for secondary recovery.
The pipeline application to tie in the 5-31-55-6W5M Nordegg well has been approved and Point Loma intends to commence construction on the pipeline immediately which is estimated to be completed in approximately three weeks.
The 5-31 Nordegg well was the subject of an extended test to confirm appropriate surface facilities.
Prior to the test Point Loma had successfully reconfigured the well to optimize the sizing of the surface equipment. The well was flowed via production from the Nordegg formation test under restricted rates for six days with the flow averaging as follows (all load fluid was recovered prior).
Total fluid recovered was 1,760 barrels. Average oil rate was 150 barrels per day. Meanwhile, the natural gas rate was 500,000 cubic feet per day (80 barrels of oil equivalent per day).
With the addition of this new well Point Loma is poised to continue its expanding production base to a level above 700 boe/d. Point Loma is also under way with the survey and pipeline plans to tie in the Thorsby glauconite well 11-18-49-1W5 shortly after the completing the tie-in of the Nordegg well. The Thorsby well was previously flow tested and is anticipated to increase Point Loma’s production levels to a year-end exit rate of greater than 800 boe/d.
Point Loma shares rise by 7.9% to C$0.34 on Monday.
Story by ProactiveInvestors