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Calima Energy (ASX:CE1) adds Leo#4 to drilling program

ASX News, Energy
ASX:CE1      MCAP $80.71M
24 January 2022 17:21 (AEST)

Calima's Thorsby project, located north of Brooks. Source: Calima Energy

Calima Energy (CE1) has added a high impact unconventional oil well, Leo #4, to its drilling program at the Greater Thorsby Area at North Thorsby in Canada.

Leo #4 is an oil well at North Thorsby and spudded last week and is prospective for the development of multiple sparky age oil-bearing channel sands.

The aim of the well is to successfully expand the greater Thorsby area, providing cash flow generation and reserves growth.

The well will test a thick channel for productivity and is the first step in starting to
develop the Sparky and expand the greater Thorsby fairway.

Calima holds a 50 per cent working interest in Leo#4 and is the operator of the well.

The company plans to frac and tie-in the well in late second quarter or third quarter of 2022, pending spring break-up conditions.

“The commencement of the January 2022 drilling campaign reflects a strong start to the year for the company with the drilling of Leo #4,” CEO and President Jordan Kevol said.

“North Thorsby is a new development area for the company and Leo #4’s level of success will potentially open up additional reserves to book and subsequently develop.”

CE1 finished the day of trading at 23 cents, down 2.23 per cent.

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