Pulse Oil Corp., 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.
1. 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.
2. 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:
a. 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.
b. 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.
c. 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.
d. 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.
3. 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.
