CALGARY, ALBERTA / ACCESSWIRE / January 2, 2019 / Point Loma Resources Ltd. (TSX VENTURE: PLX) (the "Corporation" or "Point Loma") is pleased to announce the timing of the listing of warrants issued on October 25, 2018. In addition the Corporation is providing updated operational information.
Highlights
- The Wizard Lake Rex horizontal oil well has been successfully drilled and completed with a 28 stage frac program. An average of 27 tonnes of sand per stage was delivered in the completion.
- The well is now in a test period to recover completion fluids utilized during the frac and to establish stabilized oil deliverability. This operation is anticipated to take a minimum of 3-4 weeks.
- Point Loma plans to list on the TSXV Venture Exchange (the "TSXV") 5,954,300 warrants issued as part of the recent fund raising closed on October 25, 2018.
Operational Update
The Corporation has completed and is currently evaluating the Wizard Lake Rex horizontal oil well that was drilled and cased in December. A total of 28 frac stages were pumped during the completion operation. The final phase of the well completion is now underway involving producing back the frac fluids (approximately 12,000 barrels) and establishing stabilized oil deliverability rates for the well.
Listing of Warrants
The Corporation has received approval to list on the TSXV 5,954,300 warrants associated with the October 25, 2018 fund raising. It is anticipated these warrants will begin trading under the symbol "PLX.WT" on January 3, 2019.
Shares for Services
The Corporation has reached an agreement with Akula Resource Consultants Ltd. and Darren Steffes (collectively, the "Plaintiffs"), pursuant to which the Plaintiffs have settled a litigation claim brought against the Corporation in consideration for the Corporation making a payment of $25,000 (the "Settlement Amount") to the Plaintiffs. The Settlement Amount has been satisfied by the issuance of 109,649 common shares in the capital of the Corporation (the "Settlement Shares") to Mr. Steffes. The Settlement Shares were issued at a deemed price of $0.228 per Settlement Share.
The Settlement Shares are subject to a statutory hold period of four months plus one day from the date of issuance, in accordance with applicable securities legislation. The issuance of the Settlement Shares did not result in the creation of a new Control Person (as defined in the policies of the TSXV).
About Point Loma
Point Loma is a public oil and gas exploration and development company focused on conventional and unconventional oil and gas reservoirs in west central Alberta. The Corporation controls over 160,000 net acres (250 net sections) and has a deep inventory of oil opportunities in the Mannville (Upper and Lower), Banff, Nordegg, and Duvernay Shale formations. Point Loma's business plan is to utilize its experience to drill, develop and acquire accretive assets with potential to employ horizontal multi-stage frac technology and to exploit opportunities for secondary recovery. For more information, please visit Point Loma's website at www.pointloma.ca or Point Loma's profile on the System for Electronic Document Analysis and Retrieval website at www.sedar.com.
For further information, please contact:
Terry Meek
President and CEO
Telephone: (403) 705-5051 ext. 444
[email protected]
Thomas Love
Interim CFO
Telephone: (403) 705-5051 ext. 443
[email protected]
A Note Regarding Forward-Looking Information
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws, including without limitation, statements pertaining the expected timing and anticipated results of the Corporation's drilling program, including flowback and testing of wells; the Corporation's completion and evaluation plans; the characteristics of the Corporation's properties and associated reservoirs; the expected timing for listing of the Corporation's warrants; the Corporation's implementation of its capital program; Point Loma's expectations as to future prices of oil and natural gas; the focus of Point Loma's management team and go-forward strategy.
The use of any of the words "will", "expects", "believe", "plans", "potential" and similar expressions are intended to identify forward-looking statements or information. Although Point Loma believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because Point Loma cannot give assurance that they will prove to be correct.
Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited, the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve and resource estimates; the inability of Point Loma to bring additional production on stream or in the anticipated quantities disclosed herein; the uncertainty of estimates and projections relating to reserves, resources, production, costs and expenses; health, safety and environmental risks; commodity price and exchange rate fluctuations; marketing and transportation; loss of markets; environmental risks; competition; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; ability to access sufficient capital from internal and external sources; changes in legislation, including but not limited to tax laws, royalties and environmental regulations, actual production from the acquired assets may be greater or less than estimates. Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release in order to provide security holders with a more complete perspective on Point Loma's future operations and such information may not be appropriate for other purposes.
The forward-looking statements and information contained in this press release are made as of the date hereof and Point Loma does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Oil and Gas Information
"BOEs" may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (6 Mcf: 1 bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. As the value ratio between natural gas and crude oil based on the current prices of natural gas and crude oil is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Point Loma Resources Ltd.