Vancouver, British Columbia, June 9, 2022 – Pulse Oil Corp., (“Pulse” or the “Company”) (TSXV: PUL) is pleased to announce that the Company has filed its Q1 2022 unaudited interim financial statements and management discussion and analysis for the three month period ending March 31, 2022.
Quarterly Financials for March 31, 2022 (CDN$):
Some of the financial highlights of the quarterly results and comparable with the fourth quarter of 2021 and the comparable three month period last year are as follows:
|Description||March 31, 2022||December 31, 2021||March 31, 2021|
|Cashflow from operations||$944,526||$645,387||($146,870)|
Pricing details (CDN$):
* The March 31, 2021 net income amount includes a one-time gain on debt settlements of $308,171 that occurred during the quarter.
As noted in our 2021 year end news release, during the first quarter of 2022 Pulse conducted a variety of necessary workovers and/or scheduled maintenance to some of its producing Bigoray wells. As a result of this downtime Pulse averaged production for the quarter of 262 BOE/D with 71.1% of the production being oil and natural gas liquids.
During the month of May 2022, Pulse’s production averaged 243 BOE/D, with 70.8% of that production being oil and natural gas liquids (“NGL”) with expectations that gross revenue for the month of May totalling approximately $630,000 based on strong oil and gas prices at approximately $130 per barrel of oil and $7 per MCF of natural gas. Pulse’s management team expects average production for Q2 to be similar to the Q1 daily production average and growing to over 300 BOE/D for Q3.
Finally, Pulse is also pleased to announce that as of May 27, 2022 Pulse’s investment in reactivating certain pipelines has allowed Pulse to start selling natural gas from additional Bigoray wells, creating a new revenue stream that management feels will add approximately $30,000 of additional revenue per month starting this month.
Going forward, Pulse will be focussed on growing production, revenue and cash flow more materially once the Company begins the injection phase of the Bigoray EOR project. To achieve this important milestone, Pulse’s team is focussed on making continued progress on the project by advancing the engineering, continuing to secure and transporting the necessary infrastructure and to finalise acceptable terms of a solvent supply agreement; all of which are made possible by a strengthened balance sheet provided by Pulse’s supportive shareholders allowing the Company to close its $10,706,000 non-brokered private placement financing.
Pulse is a Canadian company incorporated under the Business Corporations Act (Alberta) that is primarily focused on a 100% Working Interest Enhanced Oil Project Located in West Central Alberta, Canada. The project includes two established Nisku pinnacle reef reservoirs that have been producing sweet light crude oil for over 40 years. The Company plans to institute a proven recovery methodology (NGL solvent injection) to further enhance the ultimate oil recovery from these two proven pools. With under 10 million barrels of oil recovered to date, and representing approximately 30% recovery factor from the pools, Pulse is moving forward to execute the EOR project and unlock significant value for shareholders. Pulse’s total reclamation liabilities are just $2.23 million which, when compared to many peers in the industry in Western Canada, are very low.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information contact:
Pulse Oil Corp.
President and COO
Barrels of oil equivalent (boe) is calculated using the conversion factor of 6 mcf (thousand cubic feet) of natural gas being equivalent to one barrel of oil. Boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl (barrel) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis.
Forward Looking Statements:
This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking information. In this news release, such statements include but are not limited to Pulse’s operations, year-end results or the intended use of proceeds from the Offering. There can be no assurance that such forward-looking information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such forward-looking information. This forward-looking information reflects Pulse’s current beliefs and is based on information currently available to Pulse and on assumptions Pulse believes are reasonable. These assumptions include, but are not limited to, conditions facing Pulse at the time of the planned expenditure in advancing the Bigoray EOR project and anticipated production, revenue and cash flow. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Pulse to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: general business, commodity prices, economic, competitive, political and social uncertainties; general capital market conditions and market prices for securities; consistent production and cash flow from current operations, the actual results of future operations; competition; changes in legislation, including environmental legislation, affecting Pulse; the timing and availability of external financing on acceptable terms; and loss of key individuals. A description of additional risk factors that may cause actual results to differ materially from forward-looking information can be found in Pulse’s disclosure documents on the SEDAR website at www.sedar.com. Although Pulse has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Readers are cautioned that the foregoing list of factors is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Forward-looking information contained in this news release is expressly qualified by this cautionary statement. The forward-looking information contained in this news release represents the expectations of Pulse as of the date of this news release and, accordingly, is subject to change after such date. However, Pulse expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.