Moreover, the group improved output rates of the existing wells with a series of enhancements that allowed it to exit the month at 500 boe/d.
The oil and gas group was established in June this year via the reverse take-over of First Mountain Exploration Inc, when it acquired the assets in Paddle River area for a Total of $5.5 million.
Capital expenditures of $2.4mln were incurred during the three months to end September, mainly on facilities to re-activate production in the area.
Gross revenue was $629,000, while cash flow used in operations stood at $167,000. In keeping with a firm at this formative stage the net loss was $124,000.
As reported earlier, Point Loma is currently executing the second phase of activity with the tie-in of a previously standing Nordegg well in the West Cove area
Shares in the firm jumped this week after it 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 kick start production.
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 expanding production 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.
Story by ProactiveInvestors