Point Loma Resources Ltd (CVE: PLX) said on Monday it has entered into an agreement to acquire certain properties in the Judy creek and Thornbury areas that will expand its Paddle River focus area and add significant reserves and production.
Unveiling its 2016 year-end reserves report which indicated 2,037 mboe were proved plus probable, the company also said it was working to license wells for drilling in 2017 to further develop existing oil pools and test additional bypass pay opportunities. Point Loma now has approximately 225,000 net acres and a large inventory of indicated prospects that can allow the Corporation to grow quickly as we gain scale and better valuation in capital markets.
With the addition of Judy Creek and Thornbury properties Point Loma will be producing approximately 900 boe/d and will have an additional estimated 450 boe/d of behind pipe production. Re-activating this production will be the focus of first half 2017 activity. Point Loma will continue to seek deals that strengthen our cash flow per share and reserves per share.
Point Loma said it agreement to acquire certain assets in the Judy Creek and Thornbury areas of Alberta is expected to close in late February 2017 and is subject to standard closing conditions and the subsequent Alberta Energy Regulator approval of the transfer of licenses.
Point Loma said it has completed a transaction to acquire the corporation Ascent and has amalgamated Ascent into Point Loma effective January 24.
Point Loma shares were up 1.8% at C$0.58 on Monday.
Story by ProactiveInvestors