Alberta focused oil group Point Loma Resources Ltd (CVE:PLX) shares were more than 2% higher on Friday after the company said it had achieved another step in production increases with the tie-in of the 5-31 well which will set up additional development drilling in the West Cove area.
Point Loma was originally targeting a year-end exit production rate of approximately 700 boepd. Although the actual year-end production rate is lower than anticipated on a boe basis, the production mix of oil and NGLs has substantially increased to 55% from the forecast 40% and will translate into higher netbacks per boe.
The recent increase in oil and natural gas prices will also have a positive impact on the company’s 2017 cash flow from operations.
Among highlights of its operational update:
Point Loma shares were up 2.2% at C$0.46 on Friday.
Story by ProactiveInvestors