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Point Loma Resources shares flow higher as it posts successful test results for Rex play well

The test began on December 24 last year and was conducted with a submersible pump

Nodding donkey
The final pumping rate for the well over the last 24 hours of the test period was 305 barrels per day (bpd) of oil and 340 barrels of oil equivalent per day (boe/d)

Point Loma Resources Ltd (CVE:PLX) (OTCMKTS:FMTNF) shares flowed northwards as it posted successful production test results for its Wizard Lake HZ 16-17-48-27W4 Rex oil pool well.

The Alberta -focused junior oiler has a 70% working interest in the lands associated with the well.

Shares zipped up 5% to $0.21 in Toronto.

READ: Point Loma Resources success at high impact Rex play could be game-changer, says broker Mackie

The test began on December 24 last year and was conducted with a submersible pump to temporary production testing facilities.

The final pumping rate for the well over last 24 hours of the test period was 305 barrels per day (bpd) of oil and 340 barrels of oil equivalent per day (boe/d).

At this rate, Point Loma's share of oil production would increase its overall oil output by over 100%.

Plans are now underway to tie-in and conserve solution gas associated with the well and install production facilities.

The well is expected to be placed on production in the second quarter of 2019.

Point Loma said the well "displayed excellent inflow" with total fluid rates averaging 1,123 bpd (barrels per day) during the testing period".

All load fluid was recovered during the test period and an additional 3,178 barrels of fluid of which 1,847 barrels of oil were recovered beyond the original load fluid, it added.

"This discovery appears to be a top tier oil pool that could add a large oil component to our production base, enhance the company's oil reserves and strategically position Point Loma as the Rex oil play continues to evolve in the area," said Terry Meek, president and CEO of Point Loma.

Significant oil opportunity

"Point Loma is excited to post this new pool result and looks forward to unlocking this significant oil opportunity for its shareholders."

The firm is now tying-in the solution gas to a nearby gas processing facility and installing a single well battery.

Excitingly, there is the potential for a further 10-14 (gross) drilling opportunities based on internal mapping and projected well spacing.

The Rex target at Wizard Lake is the first horizontal well to be drilled in what could be a multi-well program analogous to the offsetting Leduc area Rex development.

Recent activity in the area has resulted in highly commercial wells (250-300 boepd, 80% oil, 16-17 API).

Point Loma controls more than 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.

Shares were unchanged in Toronto at $0.20.

Quick facts: Point Loma Resources

Price: 0.055 CAD

TSX-V:PLX
Market: TSX-V
Market Cap: $4.9 m
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