Pulse Oil Corp. reported reserve assessments effective Dec. 31, 2017 on its Bigoray and Queenstown core operating areas.

McDaniel & Associates Consultants Ltd. and Sproule Associated Limited conducted the assessment.

(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.

It 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 per cent discount rate to Pulse's net working interest.

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

Pulse CEO Garth Johnson said: "Since going public in 2017, Pulse Oil has established two core areas at Bigoray and Queenstown. We have captured 100 per cent 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, 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.”

Full-year 2018 will be Pulse's first full fiscal year as a public company and Pulse is positioned with no debt, positive working capital and growing cash flows 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 per cent working interest) to begin drilling later this year with over 20, low-cost infill development drilling opportunities already identified,” he added. “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 per cent 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.