Pulse Oil Corp. has announced its first horizontal drilling program is now underway.
The first well was spudded on December 7, 2018 and is expected to be drilled and ready for completion within the next 10 days, followed by a second well from the same surface location. Both wells are expected to be completed and tested in January once the drilling rig has moved off site and, if successful, new production will be established immediately in the 1st Quarter of 2019.
Each Queenstown well will be drilled to a true vertical depth of approximately 1,400 metres with additional horizontal sections of approximately 1,300 and 1,700 metres in length respectively. Upon commercial success, Pulse will have a strong inventory of additional drilling locations to expand its drilling program in 2019.
Pulse CEO, Garth Johnson, commented "We are very excited to be drilling our first light oil wells at Pulse. Since our inception last year, we have followed a strict business plan allowing us to acquire assets at opportunistic prices, take advantage of the challenging times in the oil and gas service industry to economically re-activate shut-in wells once oil prices began recovery, and now we begin a light oil reserve and production growth strategy which includes these low risk drilling opportunities at Queenstown. Pulse has a strong balance sheet; no debt and our profits are increasing as we follow our plan. We are in a good position to carefully invest capital into our assets and grow their value at a time when light Alberta oil prices remain near par with WTI pricing, despite the heavy oil (WCS) transportation issues and resultant low prices featured heavily in the media lately. Our realized October oil price was CDN $79/bbl, and while political interjection steals the headlines over heavy crude prices in Alberta, we are quietly achieving internal revenue goals each quarter."