Pulse Oil Corp. Announces Increased Reserves in 100% Held Bigoray and Queenstown Assets

April 16, 2018

CALGARY, April 16, 2018 /CNW/ – Pulse Oil Corp. (“Pulse” or the “Company”) (TSX-V: PUL and PUL.WT) reports today that McDaniel & Associates Consultants Ltd (“McDaniel”) and Sproule Associated Limited (“Sproule”), qualified independent reserves evaluators in accordance with National Instrument 51-101 and the Canadian Oil and Gas Evaluation Handbook, have completed their independent reserves assessment (the “Assessments”) on Pulse’s interests within the Bigoray and Queenstown core operating areas, respectively for the fiscal year ended December 31, 2017 (“FY2017”).

The Assessments were effective December 31, 2017 and resulted in a pre-tax net present value of $24.37 million (FY2016: $0) proven plus probable (“2p”) reserves and $15.4 million (FY2016: $0) proven (“1p”) reserves, using a 10% discount rate to Pulse’s net working interest.

This represents an increase in the value of 1p reserves of 287% and an increase in the value of 2p reserves of 328% since Pulse started trading on the TSX-V, as disclosed February 27, 2017.

Pulse CEO, Garth Johnson commented, “Since going public in 2017, Pulse Oil has established two core areas at Bigoray and Queenstown. We have captured 100% ownership of an exciting Enhanced Oil Recovery Project (EOR) focused on two Nisku light oil pools with an estimated resource classified as Discovered Petroleum Initially in-Place (DPIIP) of approximately 26.51 million boe’s (see March 26, 2018 press release), increased its proved plus probable reserves value to $24.37 million (which doesn’t include significant upside coming from our Enhanced Oil Recovery (“EOR”) Project underway at Bigoray) and added other great opportunities to its asset base to exploit the Cardium, Pekisko and Duvernay Shale plays contained across our 65 net section land base.

“FY2018 will be Pulse’s first full fiscal year as a public company and Pulse is positioned with no debt, positive working capital and growing cashflows for reinvestment. We are excited to have started phase one of our Bigoray EOR project currently underway in the field and we are also beginning to lay out a plan for our producing assets at Queenstown (100% Working Interest) to begin drilling later this year with over twenty, low-cost infill development drilling opportunities already identified. After making a number of strategic moves in 2017 to capture a significant asset base and by executing a low risk capital investment plan to grow production to 500 BOE/d between now and this summer, we are looking forward to seeing what the Pulse team can do with a full year of effort!”

Bigoray and Queenstown Reserves (Oil and Gas) are described on a BOE and “Pulse gross” basis. Pulse gross is defined as Pulse’s 100% working interest before deduction of royalties and without including any royalty interest of Pulse. Pulse’s reserve summary does not include any estimates on new potential reserves from Pulse’s planned Bigoray enhanced oil recovery project, nor Duvernay Shale, Cardium or Pekisko upside.


Property Description	Proved (1P) (MBOE)	Proved & Probable (2P) (MBOE)	Proved: NPV10 ⁽³⁾	Proved & Probable: NPV10 ⁽³⁾
Bigoray Assets⁽¹⁾	1,245	1,878	$13,470,600	$18,013,900
Queenstown Assets ⁽²⁾	521	1,029	$1,926,400	$6,353,200
Total	1,766	2,907	$15,397,000	$24,367,100

1.	Bigoray Assets use the independent reserve evaluation completed by McDaniel & Associates Consultants Ltd. for Pulse’s interests effective December 31, 2017.
2.	Queenstown Assets independent reserve evaluation completed by Sproule Associated Limited effective December 31, 2017.
3.	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 used for Bigoray can be found at http://www.mcdan.com/priceforecast and for Queenstown the forecast commodity prices can be found at https://www.sproule.com/insights/sproule-price-forecasts.

A More Detailed Reserve Breakdown as of December 31, 2017:


Bigoray Assets 100% ⁽¹⁾		Proved Developed Producing	Proved Developed Non-Producing	Proved Undeveloped	Probable	Total Proved and Probable
Light/Medium Oil	(Mbbl)	132	701	0	211	1044
Heavy Oil	(Mbbl)	0	26	0	195	221
Natural Gas	(MBOE)	51	195	0	155	401
NGL	(Mbbl)	26	114	0	72	212
Total Bigoray (MBOE):		209	1,036	0	633	1,878


Queenstown Assets 100% ⁽²⁾		Proved Developed Producing	Proved Developed Non-Producing	Proved Undeveloped	Probable	Total Proved and Probable
Light/Medium Oil	(Mbbl)	13	0	148	179	340
Heavy Oil	(Mbbl)	0	0	0	0	0
Natural Gas	(MBOE)	93	0	212	279	584
NGL	(Mbbl)	17	0	38	50	105
Total Queenstown (MBOE):		123	0	398	508	1,029

1.	Bigoray Assets use the independent reserve evaluation completed by McDaniel & Associates Consultants Ltd. for Pulse’s interests effective December 31, 2017.

2.	Queenstown Assets independent reserve evaluation completed by Sproule Associated Limited effective December 31, 2017.

About Pulse Oil Corp.

Pulse is a Canadian company incorporated under the Business Corporations Act (Alberta) and has plans to become a leading oil and gas company. Pulse has recently completed four transactions to consolidate its interests in the Bigoray area of Alberta, resulting in 100% control of Pulse’s Bigoray operations that include two Nisku oil Pinnacle Reefs as well as 100% interests in producing assets in the Queenstown area of Alberta. Pulse is moving forward to grow production and execute an Enhanced Oil Recovery 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 focus on 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, infrastructure ownership and reserve growth utilizing proven enhanced oil recovery techniques and implementation of technology.