Pulse Oil Corp (CVE:PUL) (FRA:6PL) said that it and its agent have mutually agreed to terminate an earlier announced placing to advance its flagship Alberta asset and the firm was considering alternative financing options.
In May this year, the oiler unveiled plans to raise up to C$30.9 million gross to accelerate its enhanced oil recovery (EOR) project at Bigoray in Alberta.
READ: Pulse Oil unveils plans for up to C$30.9M offering to fund Bigoray enhanced oil recovery project
"The past number-of-months have been unprecedented and have resulted in the termination of this financing," said Pulse's chief executive Garth Johnson in a brief statement.
"Our efforts will now focus initially on a smaller financing to firm up Pulse’s balance sheet and allowing Pulse the opportunity to pursue the funding needed for the Bigoray EOR project."
Johnson noted that the project was "ready to go" once adequate funding was achieved. The technical and economic analysis is complete and the results are very encouraging, even at today’s commodity prices.
"This asset is worth persevering through tough times and we are committed to making this program happen," he told investors.
The private placing was conducted by Raymond James Ltd as sole agent and sole bookrunner.
The Bigoray project includes two established Nisku reef reservoirs that have been producing sweet light crude oil for more than 40 years. Pulse aims to inject solvent into the pools, a proven method, to further enhance oil recovery.
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