logo-loader
Point Loma Resources

Point Loma Resources announces spudding of first of two well farmout program at Wizard Lake

The target has the potential to increase the firm's current oil and natural gas liquid production, enhance its reserves base and open up new oil development opportunities

Oil derrick
The well in Alberta is expected to be completed and tested before the end of August

Point Loma Resources Ltd (CVE:PLX) told investors Monday that the first of its previously announced two well farmout program with partner Salt Bush Energy at the Wizard Lake project was spudded on July 27.

The well in Alberta is expected to be completed and tested before the end of August.

READ: Point Loma Resources expects first farm-out well at Wizard Lake to spud this month

The company said the target has the potential to increase its current oil and natural gas liquid production, enhance its reserves base and open up new oil development opportunities.

Salt Bush is paying 100% of the costs to drill, complete and equip to earn a 75% working interest before payout (BPO) and a 40% working interest after payout (APO). It also has the option to drill a second earning well before the end of the year, paying for 100% of the cost and equipment to earn a 75% working interest in the well BPO and a 50% working interest APO.

Point Loma and Salt Bush would then each have a 50% working interest in the Wizard Lake lands.

Rex oil well started producing on June 5

Point Loma said the first production well at Wizard Lake - the 16-17-48-27W4 Rex oil well - started generating oil on June 5 this year and output for that month was estimated at 4,280 barrels over a total producing period of 555 hours, with the oil cut increasing throughout the period.

Output for the well is estimated to be between 200 and 250 barrels per day (bpd) of oil, with the firm eyeing further production and cashflow.

On June 17, Point Loma unveiled plans to potentially sell its interest in the Wizard Lake Rex oil asset, after it struck a deal with broker Mackie, which will canvas potentially interested parties in a transaction to acquire the firm's 70% working interest.

Shares in Toronto were unchanged at $0.12.

Contact Giles at [email protected]

Follow him on Twitter@Gile74

Quick facts: Point Loma Resources

Price: $0.14

Market: TSX-V
Market Cap: $10.52 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Point Loma Resources named herein, including the promotion by the Company of Point Loma Resources in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Point Loma to kick off production on its oil project with partner Salt Bush...

Point Loma Resources Ltd (CVE:PLX) CEO Terry Meek tells Proactive Investors the oil and gas company has announced that its partner on the Wizard Lake Rex oil project has agreed to a two-well farm-in transaction to fund drilling and setup costs. Meek says its partner, Salt Bush Energy Ltd,...

on 31/5/19

2 min read