We've been busy
The Pulse Team, with the assistance of it’s engineering and geoscience contractors are excited to have reactivated wells to provide reserves and cash flow from our 100% owned oil and gas asset, and now we have achieved the next step in Pulse’s plan starting Pulse’s Enhanced Oil Recovery (“EOR”) program.
Pulse Oil Corporation does not directly offer or supply engineering or geoscience services. All engineering or geoscience services are provided through qualified and legally authorized third-party companies and individuals.
BIGORAY
SCHLUMBERGER Canada Ltd., one of the worlds leading independent experts, GEOTECHNICAL MODELLING CONCLUDES PULSE’S NISKU D AND E POOLS ARE TECHNICALLY ANALOGOUS TO SURROUNDING OFFSET POOLS:
Discovered Petroleum Initially In-Place (“DPIIP”) of 33,519 mbbl estimated by Schlumberger (1)
28% recovery factor (9.4 million bbls of light and medium oil) produced to date on water flood alone, consistent with waterflood recovery of analogous area pools
If an 82% recovery factor can be achieved by Pulse to match the 7 pools within 15-mile radius of Pulse’s two pools after miscible floods that achievement would mean a further 18 million barrels of oil + associated natural gas production would be recovered by Pulse in coming years.
With the support of Pulse’s independent third party analysis and modelling results, previously news released, Pulse feels we can increase production by large multiples through our low-risk and proven EOR program.
Enhanced Oil Recovery: Successful Technique
EOR involves the process of increasing the amount of recoverable oil from a reservoir by injecting a mixture of NGL’s into an existing oil pool to swell the oil and reduce its viscosity, allowing “stuck oil” to flow more easily towards the producing wells
At Bigoray, Pulse is injecting an NGL product into the top of the reservoir. Once a 10m bank of NGLs has been created, injection will switch to natural gas to push the NGL bank down through the reservoir. Oil will be continually produced from the bottom of the reservoir throughout the process with production forecasted to continually grow for a number of years.
Note: The one-time reduction in net free monthly cashflow in late 2024 and early 2025 illustrates a one time capital expenditure to optimize production in both the Nisku D and E reefs.
BIGORAY AREA RECOVERY FACTOR (RF) MAPPING
Analogous pools have an average productive life of ~40 years and an average recovery factor of 82% after implementation of solvent flood EOR projects(2)
(1) Resource Definitions
Resources encompasses all petroleum quantities that originally existed on or within the earth’s crust in naturally occurring accumulations, including Discovered and Undiscovered (recoverable and unrecoverable) plus quantities already produced. “Total Resources” is equivalent to “Total Petroleum Initially In-Place”. Resources are classified in the following categories:
Total Petroleum Initially In-Place (“TPIIP”) is that quantity of petroleum that is estimated to exist originally in naturally occurring accumulations. It includes that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations, prior to production, plus those estimated quantities in accumulations yet to be discovered.
Discovered Petroleum Initially In-Place (“DPIIP”) is that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations prior to production. The recoverable portion of DPIIP includes production, reserves, and Contingent Resources; the remainder is unrecoverable.
Contingent Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development but which are not currently considered to be commercially recoverable due to one or more contingencies. Economic Contingent Resources (ECR) are those contingent resources that are currently economically recoverable.
Undiscovered Petroleum Initially In Place (“UPIIP”) is that quantity of petroleum that is estimated, on a given date, to be contained in accumulations yet to be discovered. The recoverable portion of UPIIP is referred to as Prospective Resources and the remainder is unrecoverable.
Prospective Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective Resources have both an associated chance of discovery and a chance of development.
Unrecoverable is that portion of DPIIP and UPIIP quantities which is estimated, as of a given date, not to be recoverable by future development projects. A portion of these quantities may become recoverable in the future as commercial circumstances change or technological developments occur; the remaining portion may never be recovered due to the physical/chemical constraints represented by subsurface interaction of fluids and reservoir rocks. Uncertainty Ranges are described by the Canadian Oil and Gas Evaluation Handbook as low, best, and high estimates for reserves and resources as follows:
Low Estimate: This is considered to be a conservative estimate of the quantity that will actually be recovered. It is likely that the actual remaining quantities recovered will exceed the low estimate. If probabilistic methods are used, there should be at least a 90 percent probability (P90) that the quantities actually recovered will equal or exceed the low estimate.
Best Estimate: This is considered to be the best estimate of the quantity that will actually be recovered. It is equally likely that the actual remaining quantities recovered will be greater or less than the best estimate. If probabilistic methods are used, there should be at least a 50 percent probability (P50) that the quantities actually recovered will equal or exceed the best estimate.
High Estimate: This is considered to be an optimistic estimate of the quantity that will actually be recovered. It is unlikely that the actual remaining quantities recovered will exceed the high estimate. If probabilistic methods are used, there should be at least a 10 percent probability (P10) that the quantities actually recovered will equal or exceed the high estimate.
Development Unclarified is a project maturity sub-class of contingent resources that refers to the development plan evaluation is not complete and there is ongoing activity to resolve any risks or uncertainties.
Certain resource estimate volumes disclosed herein are arithmetic sums of multiple estimates of DPIIP or UPIIP, which statistical principles indicate may be misleading as to volumes that may actually be recovered. Readers should give attention to the estimates of individual classes of resources and appreciate the differing probabilities of recovery associated with each class as explained under this Resource Definitions section.
(2) Source: Alberta Energy Regulator at https://www.aer.ca/providing-information/data-and-reports/statistical-reports/reserves-data; AER Pool Data Relevant to December 31, 2019, geoSCOUT. See Analogous Information section.