Pulse Oil Corp. Announces 2018 Year-End Results: A Year of Growth; Second Bigoray Well Drilled and Cased for Production

CALGARY, May 1, 2019 /CNW/ - Pulse Oil Corp. ("Pulse" or the "Company") (TSX-V: PUL and PUL.WT) is pleased to report the Company's consolidated financial statements for the year ended December 31, 2018 ("FY 2018") and accompanying management's discussion and analysis are now filed and available for viewing under the Company's profile at www.sedar.com. Pulse's first full year as a public company resulted in significant growth in all measured corporate financial metrics, including its 2018 year-end reserves as evaluated by McDaniel and Associates Ltd. ("McDaniel"). Below are highlights of FY 2018, Pulse encourages readers to access full versions of the filings at www.sedar.com.

2018 Financial Highlights:

• Pulse increased its revenue by 378% to $2,670,743.
• Cash flow from operations increased to $1,908,860 for FY 2018 compared to negative cash flow from operations of $877,504 last year.
• On November 20, 2018, Pulse concurrently closed a best-efforts public offering and a private placement for total gross proceeds of $11,300,520.
• Pulse ended FY 2018 with $10,286,827 in cash and $7,034,526 in working capital compared to $859,656 in cash and $715,786 in working capital last year.
• The company recorded net income for the year of $46,172 compared to a net loss of $1,211,932 last year.

2018 Operating Highlights:

• Increased proved ("1p") reserve value by 40% and 2p by 37% when compared to FY 2017. Reserve estimates, with an effective date of December 31, 2018, on Pulse's interests within the Bigoray and Queenstown operating areas were assessed by McDaniel, a qualified independent reserves evaluator, in accordance with National Instrument 51-101 and the Canadian Oil and Gas Evaluation Handbook (the "Assessments").  The Assessments resulted in a pre-tax net present value of future net revenue of $33.4 million of proved plus probable ("2p") reserves and $21.5 million of 1p reserves, using a 10% discount rate to Pulse's net working interest.  The estimated value does not represent fair market value.
• Phase 1 and 2 of the contracted Schlumberger Enhanced Oil Recovery study were completed in 2018; Phase 3 was completed in January 2019 leading to encouraging results as previously announced by Pulse. 
• Throughout FY 2018, Pulse added production through reactivations at Bigoray, acquired certain wells from arms-length third parties and the Alberta Energy Regulator, negotiated surface access agreements and completed a geotechnical evaluation of 3-D seismic data that optimized the Queenstown asset and led to the drilling of Pulse's first two Queenstown oil wells.
• In December 2018, Pulse drilled two light oil wells in Pulse's Queenstown asset followed by completion and initiation of permanent production in early 2019. As of the date of this release, the two wells continue to flow back a combination of load water associated with fracture treatments and sweet, light crude oil with oil cuts steadily increasing on a daily basis. It is expected to take a further 3-4 weeks for the wells to reach maximum oil rates, at which time the Company will report results.
• Planned for the drilling of two new Bigoray oil wells in Q1 of 2019. Both wells are being completed and production testing is expected to begin in May 2019.

Pulse is also pleased to report its second Bigoray well has successfully reached total depth of 2705MD into the Nisku E pool. Results of this second well are encouraging with oil shows similar to the Nisku D pool well previously announced on April 23, 2019. Both wells have successfully defined undrained attic areas of the pinnacle reef pools and are now awaiting improved spring break-up weather conditions to initiate testing operations. Existing infrastructure will facilitate commencement of full-time production in Q2 of the 2019 fiscal year.

Garth Johnson, Pulse CEO, commented, "A busy year was had by everyone at Pulse, despite the challenging times producers faced in the Canadian oil and gas industry. Low oil prices, large differentials affecting oil sales prices and a year of political gamesmanship between many of the provinces of Canada fuelled these challenges. At Pulse, we embrace the discussion as it relates to the environment and the effort to make changes while also understanding the need for oil and gas in the coming years until a viable, cost-effective alternative is available around the world. This was our first full year as a publically traded company and we are happy to have achieved significant growth in revenue, cash flow from our operations, reserves and in net income. At the same time we accessed equity markets in a very difficult time and put that money to work. We have already drilled two wells at Queenstown that are now on permanent production via our recently installed facilities and pipelines. We also planned to advance our Bigoray EOR program and in Q1 2019 completed a Bigoray two well drilling program. We forecast solid results from both these programs that will enable us to advance our 2019 operations. As oil prices have strengthened, differentials have returned to normal levels, and a new government has been elected in Alberta, our timing to add production is lining up well and we look forward to working toward more success in the coming years. We thank those that have supported us this far."

About Pulse Oil Corp.

Pulse is a debt-free, Canadian company incorporated under the Business Corporations Act (Alberta) that is focused on methodically, safely, yet aggressively making progress to increase production and reserves in the Queenstown and Bigoray acreages it holds 100% interests in. In addition, Pulse is advancing its Bigoray EOR program and new drilling efforts in Queenstown. Pulse owns 100% interests in the Bigoray area of Alberta, which includes two Nisku oil pinnacle reefs, as well as 100% interests in producing assets in the Queenstown area of southern Alberta. Pulse is moving forward to grow production and execute an EOR project to unlock significant value for shareholders through control of approximately 65 net sections of land across the Mannville, Cardium, Pekisko/Shunda, Nisku and Duvernay Shale trends in Western Canada.  Pulse will also continue to focus on potentially acquiring affordable, small to medium sized proven oil and gas assets with significant upside. The Company plans to achieve further growth through low-risk, technically diligent drilling within its Queenstown assets, infrastructure ownership and reserve growth utilizing proven EOR techniques and implementation of technology.

Neither the TSX Venture Exchange, Inc. nor its Regulation Service Provider (as that term is defined under the policies of the TSX Venture Exchange) has neither approved nor disapproved of the contents of this press release.

READER ADVISORY

This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could", "potentially" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature.  Such statements include, without limitation, statements pertaining to the Bigoray and Queenstown operations currently underway, including drilling plans and results, production testing, anticipated oil pay, well completion, anticipated future production, and facilities related to the assets of Pulse Oil. In addition such statements also include without limitation, statements pertaining to the expected Bigoray EOR project and its planned development. 

The forward-looking statements are based on management's current expectations and beliefs concerning future developments and their potential effect on the Company based on information currently available to management. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting Pulse will be those anticipated. Forward-looking information involves known and unknown risks, uncertainties, assumptions and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. Important factors that could cause actual results to differ materially from those in the forward looking statements include, but are not limited to: drilling results that deviate from management's current expectations; delays in the Company's drilling activities and tie-in of infrastructure; the volatility of commodity prices, product supply and demand, competition, access to and cost of capital, the assumptions underlying production forecast, the quality of technical data; environmental and weather risks, including the possible impacts of climate change, the ability to obtain environmental and other permits and the timing thereto, government regulation or action, the costs, timing and results of drilling operations; the availability of equipment, services, resources and personnel required to complete the Company's planned operating activities; access to and availability of transportation, processing and refining facilities, acts of war or terrorism; and general economic conditions and other financial, operational and legal risks and uncertainties. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligations 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.

Barrels of oil equivalent (boe) is calculated using the conversion factor of 6 mcf (thousand cubic feet) of natural gas being equivalent to one barrel of oil. Boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl (barrel) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis

Reserves

All production and reserves quantities included in Pulse's public filings have been prepared in accordance with Canadian practices and specifically in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities. These practices are different from the practices used to report production and to estimate reserves in reports and other materials filed with the SEC by United States companies. Accordingly, information concerning resources, deposits, production, reserves and any similar information of the Company may not be comparable with information made public by companies that report in accordance with United States standards.

NPV10's use forecast pricing and costs based on the opinion of the independent reserve evaluator of the future crude oil, natural gas and natural gas product prices on the effective date of the reserve evaluation and escalate annually at a rate of 2% per year, in Canadian dollars. The forecast of commodity prices can be found at http://www.mcdan.com/priceforecast.

SOURCE Pulse Oil Corp.

Pulse Oil Corp.: Garth Johnson, CEO, Phone: [phone], [email protected]; Drew Cadenhead, President and COO, Phone: [phone], [email protected]