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Pulse Oil unveils $5.5mln placing to advance Bigoray assets

Both financings consist of the issue of one share and one-half of a share purchase warrant
Pulse Oil unveils $5.5mln placing to advance Bigoray assets
Pulse oil announced financings to advance assets in Alberta

Pulse Oil Corp (CVE:PUL) unveiled plans for a private placing with certain investors to raise $5.5 million gross.

In addition to that, Pulse said it had filed a prospectus in connection with a public offering for gross proceeds of around  $2.5 million, it added.

Both financings consist of the issue of one share and one-half of one share purchase warrant.

Pulse reckons the funds raised, along with existing cashflow, will allow it to complete all the infrastructure needed for permanent production associated with its Bigoray enhanced oil recovery (EOR) miscible flood at Bigoray, Alberta.

It will also be able to start a hydrocarbon miscible flood on the Bigoray Nisku D pool and drill a multiwell program at its Queenstown assets.

The funds also means it can complete two Bigoray well reactivations to re-establish oil production from these previously producing wells.

"As the company continues to benefit from favourable oil prices, and we continue to receive encouraging technical results at each phase of our EOR modelling project, Pulse's business plan is even more focused on increasing oil production," said Drew Cadenhead, Pulse's president and COO.

"This funding allows us to accelerate our EOR project at Bigoray, which is expected to result in accelerated and strong cash flow growth for our company.

"We'll re-invest that cash flow into further optimization and reactivations at Bigoray and additional drilling at Queenstown. We believe the nature and untapped potential of our Bigoray and Queenstown light oil producing assets, will advance Pulse's operations in strength and size to create value for our shareholders."

The junior oiler also announced that upon the closing of the strategic investment, it will add one new member to its board of directors - Daniel Bolstad.

Bolstad is a lawyer, and an investor in Pulse, having taken part in Pulse's initial public financing (IPO) in June, 2017, and also as a participant in the strategic investment.

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