Pulse Oil's Enhanced Recovery Plan Hinges on Securing Funding

Pulse Oil (TSXV: PUL), an Alberta-focused junior oil producer, is banking on enhanced oil recovery to revive its operations. The company's entire investment case revolves around coaxing more crude out of mature reservoirs using solvent injection.

The Bigoray project in west-central Alberta holds a 100% working interest for Pulse Oil. This project consists of two established Nisku pinnacle reef reservoirs that have produced sweet light crude for over 40 years, representing under 10 million barrels of production to date with an estimated recovery factor of roughly 30%. The company plans to use natural-gas-liquids solvent injection to mobilize a portion of the remaining resource.

The Alberta Energy Regulator approved the Bigoray enhanced oil recovery scheme in December 2022, a necessary regulatory step for the miscible solvent approach. However, Pulse Oil's ability to raise capital and get back to full compliance is a major obstacle.