Pulse Oil Corp. (TSXV:PUL) announced findings from the independent resource assessment of the company’s Nisku enhanced oil recovery (“EOR”) project in the Bigoray area of Alberta (“Bigoray”).
As quoted in the press release:
The Resource Assessment was prepared in accordance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities of the Canadian Securities Administrators (“NI 51-101″) and the Canadian Oil and Gas Evaluation Handbook (“COGE Handbook”). Sproule assessed a best estimateDiscovered Petroleum Initially in-Place of 23.292 million barrels of oil (“boe”) within Pulse’s 100% controlled Nisku D and Nisku E Pools, which Pulse views as being conservative.
In addition, the Resource Assessment provides estimates categorized as “high”, “best” and “low” for contingent resources associated with the Bigoray EOR project on the two pools, with the unrisked high estimate being 8.07 million boe (92.6% Oil), a best estimate of 6.136 million boe (91.3% Oil) and a low estimate of 3.668 million boe (89.1% Oil).
Additionally, the Resource Assessment prepared by Sproule calculated risked contingent resources where the risked assessment assigned a 77% chance of Pulse proceeding with the EOR project (see Table 2 below) and resulting in a best estimate of risked contingent resources net to Pulse of 4.694 million boe (91.2% Oil).
Drew Cadenhead, CEO of Pulse, commented:
The Sproule Resource Assessment is a positive independent commercial confirmation for our Bigoray Nisku Enhanced Oil Recovery project. Although this assessment used a more conservative approach to Petroleum Initially in-Place (“PIIP”) compared with the PIIP estimates of the Alberta Energy Regulator, we are excited to see that even this more conservative approach resulted in a strong endorsement for the project. With an independent un-risked high case upside estimated at over 8 million boe’s of contingent resources (92% oil), the opportunity to move forward with our EOR project to bring on stream substantial cashflow while targeting to recover those types of oil volumes without drilling a well, creates a substantial opportunity to enhance value for Pulse and our shareholders.