Vancouver, British Columbia, December 1, 2022 – Pulse Oil Corp., (“Pulse” or the “Company”) (TSXV: PUL) is pleased to announce that the Company has filed its Q3 2022 unaudited interim financial statements and management discussion and analysis for the three-month period ending September 30, 2022.
Quarterly Financials for September 30, 2022 (CDN$):
Some of the financial highlights of the third quarter results are provided as well as second quarter results of 2022 and the comparable results for the three-month period last year are as follows:
|Sept 30, 2022
|June 30, 2022 *
|Sept 30, 2021
|Cashflow from operations
Pricing details (CDN$):
Pulse had another productive quarter in Q3 and in Q4 to date at its 100% owned Bigoray asset, preparing to begin injecting solvent into the Nisku D pinnacle reef, with an expectation that the program will be underway in Q4.
Financial highlights above are relatively consistent with Q2 with a few exceptions where certain operational costs were slightly higher than anticipated, while capital items related to the Bigoray Enhanced Oil Recovery (“EOR”) program have tracked at or below budget to date.
Pulse has experienced downtime at its Queenstown assets during the 3rd and 4th quarter due to maintenance requirements that have taken much longer to rectify than the third party operator had expected. Pulse believes that Queenstown will be back producing late in December 2022. As a result of the above Pulse averaged production for the quarter of 259.8 BOE/D with 64% of the production being oil and natural gas liquids.
During the fourth quarter and to November 26, 2022, Pulse’s production has averaged 229.5 BOE/D, with 74% of that production being oil and natural gas liquids (“NGL”) with expectations that gross revenue for the month of November will total approximately $430,000 based on current oil and gas prices that have trended downward lately at approximately $108 per barrel of oil and $5.47 per MCF of natural gas. Pulse’s management team expects average production for Q4 to be steady with Q3 reported production as one solid producer for Pulse has been converted from a producing oil well, to an injection well for the EOR program as previously announced.
Subsequent to Q3, Pulse has continued to make a number of significant advancements on the Company’s primary project, the Bigoray EOR program. Construction at the Bigoray EOR facility site nears completion, solvent contracts have been signed and solvent delivery to site storage tanks is expected to happen shortly in preparation for solvent injection to begin in December. Pulse will provide further updates for all shareholders as more developments are made toward commissioning Pulse’s facility and injection assets, which Management believes will be the final step to begin injection in order to grow production, revenue and cash flow materially as planned.
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 less than 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 less than $3 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.
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, the Bigoray EOR project, results, or contracts being signed already or in the future. 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.