From FSC Wire

Point Loma Resources Ltd. (TSX VENTURE: PLX) (the “Corporation” or “Point Loma”) is pleased to provide an update on its emerging Duvernay shale oil play, highlighted by the May 30th Alberta Land sale where 81,920 acres near Point Loma’s acreage were acquired by third parties for $33.6 million.

Highlights:

Point Loma currently holds approximately 15,000 net acres (23 net sections) in the West Duvernay basin

May 30, 2018 Alberta Crown land sale saw 81,920 acres sell for $33.6 million or an average price of  $347 per acre offsetting Point Loma’s West Duvernay acreage

Point Loma has reviewed technical data in the area that indicates similar reservoir properties to the East Duvernay shale basin where an estimated 10 to 15 million barrels per section of original oil in place is prospective. Point Loma’s analysis shows that the West Duvernay has a thickness of approximately 10 to 15 metres, with porosities ranging from 3 to 10% and TOC’s in the range of 2% to 10% which are parameters comparable to other successful North American shale plays.

Three horizontal Duvernay shale oil wells have been drilled by other operators to date in 2018 within Point Loma’s core area of operations at Paddle River. The results of these wells have not yet been publicly disclosed. Including both the West and East Duvernay Shale basins the industry to date has drilled an estimated 150 horizontal Duvernay shale oil wells within this emerging oil play which continues to attract increasing industry activity.

Point Loma is reviewing alternatives to unlock shareholder value from its Duvernay shale holdings, which could include, a strategic joint venture, farmout, land swap or outright sale.

Duvernay Shale Interest Highlighted By Strong Alberta Land Sale: The May 30th, 2018, Alberta land sale offering attracted $42 million of bonus, with the majority of the acreage posted within the West Duvernay shale oil basin. Several large parcels of land, with a combined acreage of 82,920 acres, and located just to the southeast of Point Loma lands (Figure 1), were acquired for $33.3 million or an average price of $347/acre.

Point Loma Resources: Industry Pays $33 million for Duvernay Shale Oil Acreage Near Company Lands

Land Holding Within the West Duvernay Shale Oil Play

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Point Loma Resources: Industry Pays $33 million for Duvernay Shale Oil Acreage Near Company Lands

Duvernay Shale Oil Fairway Information

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About Point Loma

Point Loma is a public oil and gas exploration and development company focused on conventional oil and gas reservoirs in west central Alberta. The Company controls over 160,000 net acres (250 net sections) and has a deep inventory of opportunities in the Mannville, Nordegg, Banff and Duvernay Shale formations. Point Loma’s business plan is to utilize its experience to drill, develop and acquire accretive assets with potential for horizontal multi-stage frac technology and exploit opportunities for secondary recovery. For more information, please visit Point Loma’s website at www.pointloma.ca or Point Loma’s profile on the System for Electronic Document Analysis and Retrieval website at www.sedar.com.

For further information, please contact:

Terry Meek
President and CEO
Telephone: (403) 705-5051 ext. 444
[email protected]

Kevin Angus
Vice President, New Ventures
Telephone: (403) 705-5051 ext. 440
[email protected]

Randall Boyd
Vice President Finance and CFO
Telephone: (403) 705-5051 ext. 443
[email protected]


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