(Before It's News)
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:
- Tie-in of 5-31-55-6W5M Nordegg new pool discovery well is complete and production commenced on December 22
- Point Loma achieved a year-end productivity of approximately 620 boe/d, comprised of approximately 55% oil and natural gas liquids
- This higher than forecast production mix of liquids versus natural gas will yield improved netbacks for Point Loma
- Point Loma is continuing with the tie-in plans for the Thorsby 11-18-49-1W5M Glauconitic well in early 2017 at an anticipated initial producing rate of 100 boe/d
- The company is working to re-activate previously suspended production of approximately 120 boe/d in the Leaman area through existing infrastructure
- Point Loma intends to initiate drilling operations in the first half of 2017
Point Loma shares were up 2.2% at C$0.46 on Friday.
Story by ProactiveInvestors