- Pulse Oil (PUL) is currently working to reactivate previously shut-in wells at its Queenstown and Bigoray properties
- Stronger commodity prices over recent months, and creditor and shareholder arrangements are behind the moves
- As part of its reactivation program, Pulse has approved an operational plan to build its own oil processing and water injection facility at the Bigoray property
- Subject to board approval and sufficient or additional cash reserves, another two Bigoray well reactivations later in the year
- Pulse Oil is up 25 per cent on the day, with shares of the company trading at C$0.025 at 2:56 pm ET
Pulse Oil (PUL) is currently working to reactivate previously shut-in wells at its Queenstown and Bigoray properties.
The company says stronger commodity prices over recent months, and creditor and shareholder arrangements are behind the moves.
As part of its reactivation program and rights issue, Pulse has approved an operational plan to build its own oil processing and water injection facility on the Bigoray property.
The facility will include separators, water injection and disposal, sufficient oil tankage and road work, allowing Pulse to reactivate three oil and gas wells in the second and third quarter of 2021. Subject to board approval and sufficient or additional cash reserves, another two Bigoray well reactivations later in the year.
Pulse has come to arrangement with a vendor that has allowed it to reactivate four wells at the production area at its Queenstown property. As a result of the arrangement, Pulse is receiving 25 per cent of the net revenue attributable to this production with Pulse anticipating returning to 100 per cent of net revenue by late May 2021.
“Pulse is making good progress on its well reactivation plan. The Pulse team is happy to be back working in the field to build our production and cash flow while also proceeding towards the close of our announced $1.5 million Rights Offering as well. With the additional revenues generated from the re-activated production, the company anticipates becoming profitable from operations within the three months following the completion of the Rights Offering,” said Pulse CEO Garth Johnson.
Pulse Oil is up 25 per cent on the day, with shares of the company trading at C$0.025 at 2:56 pm ET.