Pulse Oil Bets Big on EOR with New Funding Amid Early Success

VANCOUVER, British Columbia – December 01, 2025 – Pulse Oil Corp., a junior energy player focused on maximizing recovery from mature assets, has secured a significant financial boost for its flagship Enhanced Oil Recovery (EOR) project. The company announced it has increased its loan facilities to $4.25 million, providing critical capital to continue its solvent injection program at the Bigoray property in West Central Alberta. The announcement was coupled with promising early results from the project, including a notable production increase and technical data suggesting the EOR method is performing as expected.

This dual news of fresh funding and operational progress places Pulse Oil at a critical juncture. It highlights a broader industry trend where innovation is being deployed to breathe new life into decades-old oilfields, while also underscoring the high-stakes financial tightrope that small-cap producers must walk to bring such complex projects to fruition.

A High-Stakes Financial Lifeline

The amended loan agreements, an expansion of a previous $2.25 million facility, provide Pulse with an additional $2 million in capital. These funds are earmarked primarily to continue purchasing and injecting solvent into the Nisku D oil pool, the core of the Bigoray EOR project. While this injection of cash is vital for operational continuity, the terms of the deal reveal the challenging financial environment for junior producers.

The loans carry a substantial interest rate of 15% per annum, compounded monthly. Such a high rate is indicative of the perceived risk associated with capital-intensive projects in the volatile energy sector, especially for smaller companies that may not have access to traditional, lower-cost bank financing. The repayment schedule, with the principal due in June 2026 unless an extension is granted, puts considerable pressure on the company to generate returns from its EOR investment in a relatively short timeframe. This financing structure is a classic example of the risk-reward calculus inherent in the junior resource sector: securing necessary but expensive capital in the hopes that project success will far outweigh the cost of borrowing.

For Pulse, the ability to draw down these funds allows the project to continue uninterrupted, a key factor for success in EOR floods which rely on consistent injection. However, the high cost of this debt will be a significant line item on the company's balance sheet, demanding that the Bigoray project not only works, but works profitably enough to service this debt and deliver value to shareholders.

Breathing New Life into Old Wells

The financial risks are counterbalanced by increasingly positive technical data from the field. Pulse has been consistently injecting approximately 75 cubic meters of solvent per day since early June. The result, according to the company, has been a production increase of just over 20% from its Bigoray facility. While encouraging, the more scientifically compelling evidence lies in the changing properties of the oil being produced.

The company reported a dramatic increase in the American Petroleum Institute (API) gravity of the oil, a key measure of its density and quality. At the well closest to the injection point, the API gravity has surged from 41.5 in June to 52.6 in November. This is a crucial indicator that the injected solvent—a mix of natural gas liquids (NGLs)—is successfully mixing with the crude oil remaining in the reservoir. This process, known as miscibility, reduces the oil's viscosity, making it lighter and significantly easier to flow to production wells. It is the fundamental mechanism behind this type of EOR, and the reported gravity change provides strong, independent lab-verified evidence that the flood is working as designed.

The Bigoray project targets the Nisku pinnacle reef reservoirs, which have already produced nine million barrels over 40 years through primary and secondary recovery methods. These efforts, however, have only recovered an estimated 30% of the original oil in place. Pulse's EOR project aims to unlock a substantial portion of the remaining 70%, transforming a legacy asset into a source of new production. As CEO Garth Johnson noted in the announcement, “Analog pools surrounding Pulse’s D and E pools which have implemented EOR solvent injection, have all enjoyed significant further oil production from these prolific pools.”

The Bigger Picture: EOR's Role in a Mature Basin

Pulse Oil's endeavor at Bigoray is a microcosm of a larger strategic shift occurring across the Western Canadian Sedimentary Basin. With decades of conventional production, many of the region's fields are mature, experiencing natural decline rates. The era of easy-to-find, easy-to-produce oil is largely over. In its place, the focus has shifted to technological innovation to maximize recovery from known resources.

Enhanced Oil Recovery is central to this new paradigm. Instead of spending vast sums on high-risk exploration for new fields, companies like Pulse are applying advanced engineering to extract more value from assets they already own. This approach is not only capital-efficient but also carries a lower exploration risk. The success of these projects can rewrite the economic potential of entire regions, extending the productive life of infrastructure and sustaining local employment and economic activity.

The strategy is particularly relevant for the numerous Nisku pinnacle reefs scattered across Alberta, which are known for their high-quality light sweet crude but have often left significant reserves behind after conventional production methods reached their limits. If Pulse's solvent flood continues to prove successful, it could serve as a powerful case study, encouraging further investment in similar EOR projects across the province and reinforcing the idea that significant resources can still be unlocked from Canada's mature oilfields.

Navigating Market Skepticism

Despite the operational optimism, Pulse Oil has faced a challenging market environment. The company's stock, trading on the TSX Venture Exchange under the ticker PUL, has been valued at a fraction of what it was in previous years. Investor sentiment was further dampened earlier in 2025 when a cease trade order was issued against the company, leading to a temporary suspension of its shares.

While the trading suspension has been resolved, rebuilding investor confidence is a marathon, not a sprint. In this context, the latest announcement is more than just a standard operational update; it is a critical piece of a larger turnaround story the company hopes to write. By securing funding and, more importantly, delivering tangible positive results from its core project, Pulse is making a case that its strategy is sound and that its assets hold significant untapped value.

The low current price of solvent, as mentioned by the CEO, provides a timely operational advantage, allowing the company to maximize the impact of its newly secured funds. For investors, the story remains one of calculated risk. The positive technical data must translate into sustained production growth and, ultimately, free cash flow. The market will be watching closely to see if the promising trickle of results from the Bigoray EOR project can grow into a steady stream of production that validates the company's high-stakes bet on technology.