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Point Loma estimates proved plus probable reserves at 2,037 mboe

Monday, February 27, 2017 9:11
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(Before It's News)

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.

 

Highlights:

 

  • Total proved plus probable (“2P”) reserves of 2,037 mboe and proved (“TP”) reserves of 1,533 mboe.
  • Discounted at 10% Point Loma year estimated 2P present value of $19.8 million Cdn and TP present value of $13.5 million Cdn.
  • Pro-forma estimate including two transactions post year-end Ascent Energy Ltd. (“Ascent”) and certain properties in the Judy Creek and Thornbury areas of Alberta (“Judy Creek”) 2P reserves of 4,976 mboe and TP reserves of 3,923 mboe.
  • Pro-forma estimated net present value of the combined entities, as of December 31, 2016, upon closing of the Judy Creek transaction would be $36.5 million Cdn on 2P reserves and $27.6 million Cdn on TP reserves discounted at 10%.
  • Accretion of the combined transactions of 72 percent per share on a 2P reserve basis.
  • Accretion of the combined transactions of 111 percent per share on a producing boe basis.
  • Additional behind pipe production of 450 boe/d with the Judy Creek acquisition.

 

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



Source: http://www.proactiveinvestors.com/companies/news/173842/point-loma-estimates-proved-plus-probable-reserves-at-2037-mboe-173842.html

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