Pulse Oil Corp. Proposes Extension of Warrants and Updates Operations
VANCOUVER, British Columbia, May 01, 2023 (GLOBE NEWSWIRE) -- Pulse Oil Corp., (“Pulse” or the "Company”) (TSX-V: PUL) is pleased to announce that, subject to TSX Venture Exchange (“TSXV”) approval, the Company intends to extend the expiry dates of 211,870,000 outstanding share purchase warrants, (the “Warrants”) by 6 months, to November 16, 2023 (the “Warrant Extension”). The Warrants were issued pursuant to a private placement announced on February 17, 2022 and accepted for filing by the TSXV on May 16, 2022. Each Warrant is exercisable to purchase one common share of Pulse at $0.065 per share and are currently set to expire on May 16, 2023. All other terms of the Warrants, including the exercise price, will remain unchanged. Upon receipt of the approval of the TSXV of the Warrant Extension, a material change report in respect of the Warrant Extension will be filed by the Company. As the Warrants currently expire on May 16, 2023 and the date of receipt of TSXV approval (if granted) is unknown, the material change report may be filed less than 21 days before the Warrant Extension occurs.
A total of 149,000,000 of the affected Warrants are held by parties considered to be “related parties” of the Company under Multilateral Instrument 61-101 Protection of Minority Shareholders in Special Transactions (“MI 61-101”). Therefore, the amendment of Warrants constitutes a “related party transaction” as contemplated by MI 61-101 and TSXV Policy 5.9 – Protection of Minority Shareholders in Special Transactions. However, the exemptions from formal valuation and minority approval requirements provided for by these guidelines can be relied upon by the Company in respect of this matter as the fair market value of the Warrants held by “interested parties" (as defined in MI 61-101) does not exceed 25% of the market capitalization of the Company as determined under MI 61-101.
EOR Operational Advancements:
Pulse has injected approximately 5550 m3 of solvent into the first of its two pinnacle reef reservoirs (Nisku D) as of April 25, 2023 and will continue to inject solvent on a go forward basis as planned in order to increase recovery rates and oil and gas production within Pulse’s 100% owned Bigoray field.
- Pulse’s solvent contract with a large mid-stream company (the “Solvent Supplier”) expired on March 31, 2023 and Pulse has secured a continued supply of solvent with the same Solvent Supplier from April 1, 2023 to March 31, 2024 with savings of approximately 15% per m3 of solvent purchased going forward.
- Pulse is now taking a number of steps to optimize the forecasted timing for increased oil production, resulting from a successful solvent flooding process. Currently, Pulse plans to implement the following operations:
- Convert an existing shut-in well to a producing well in order to enhance the growth of oil and gas production over time as Pulse’s solvent injection continues, increasing the solvent bank and sweeping it through the Nisku D pinnacle reef.
- Workover a current producer within the Nisku D pool in order to test its potential as a second injection well and determine its potential to increase the current rate of solvent injection into the Nisku D pool.
- If the solvent injection test noted above returns positive results, Pulse will convert this well into a full-time solvent injector in the Nisku D pool.
- Pulse is in the process of acquiring an existing water disposal well from an arms-length party at no cost that will be able to dispose of additional produced water. Oil and water will be produced simultaneously during the solvent flood and additional water disposal capacity equates to additional oil production capacity.
- Convert an existing shut-in well to a producing well in order to enhance the growth of oil and gas production over time as Pulse’s solvent injection continues, increasing the solvent bank and sweeping it through the Nisku D pinnacle reef.
- Pulse will continue to identify other opportunities to further optimize the Bigoray EOR project and will constantly monitor the operations to determine if any additional operations will cost-effectively enhance the timing of production growth and overall recovery of the Bigoray EOR project.
About Pulse
Pulse is a Canadian company incorporated under the Business Corporations Act (Alberta) that is primarily focused on a 100% Working Interest Enhanced Oil Project Located in West Central Alberta, Canada. The project includes two established Nisku pinnacle reef reservoirs that have been producing sweet light crude oil for over 40 years. The Company plans to institute a proven recovery methodology (NGL solvent injection) to further enhance the ultimate oil recovery from these two proven pools. With under 10 million barrels of oil recovered to date, and representing approximately 30% recovery factor from the pools, Pulse is moving forward to execute the EOR project and unlock significant value for shareholders. Pulse’s total reclamation liabilities are less than $3 million which, when compared to many peers in the industry in Western Canada, are very low.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information contact:
Pulse Oil Corp.
Garth Johnson
CEO
604-306-4421
Drew Cadenhead
Director
Forward Looking Statements:
This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking information. In this news release, such statements include but are not limited to Pulse’s proved and probable reserves, Pulse’s operations and its oil and gas resources. There can be no assurance that such forward-looking information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such forward-looking information.
This forward-looking information reflects Pulse’s current beliefs and is based on information currently available to Pulse and on assumptions Pulse believes are reasonable. These assumptions include, but are not limited to, the independent reserves estimates, conditions facing Pulse at the time of planned expenditure included in the reserve evaluation and in advancing and optimizing the Bigoray EOR project, conducting operations on time and on budget and growing reserves, resources, production, revenue and cash flow anticipated from these operations. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Pulse to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: general business, commodity prices, economic, competitive, political and social uncertainties; general capital market conditions and market prices for securities; consistent production and cash flow from current operations, the actual results of future operations; competition; changes in legislation, including environmental legislation, affecting Pulse; the timing and availability of external financing on acceptable terms; and loss of key individuals. A description of additional risk factors that may cause actual results to differ materially from forward-looking information can be found in Pulse’s disclosure documents on the SEDAR website at Although Pulse has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Readers are cautioned that the foregoing list of factors is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Forward-looking information contained in this news release is expressly qualified by this cautionary statement. The forward-looking information contained in this news release represents the expectations of Pulse as of the date of this news release and, accordingly, is subject to change after such date. However, Pulse expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.
