- Canadian oil and gas producer Calima Energy (CE1) hits an average production rate of 4300 barrels of oil equivalent (boe) per day from its operations over January 2022
- This production figure is in line with its first-half target of between 4000 and 5000 boe per day from its Canadian operations
- What’s more, Calima says the production rate comes despite the cold-weather season in Canada and some COVID-related issue in January in Alberta
- Shareholders have responded well to today’s news after Calima revelaed on Monday December quarter daily production fell short of expectations
- Calima Energy shares are up 7.14 per cent to 22 cents each at 1:25 pm AEDT
Canadian oil and gas producer Calima Energy (CE1) has hit an average production rate of 4300 barrels of oil equivalent (boe) per day from its operations over January 2022.
The news has sent the Calima share price higher on the ASX, with the company recouping some of the lost ground from a despondent investor reaction to Monday’s quarterly report.
Calima today said despite the cold-weather season in Canada and come COVID-related issues in January in Alberta, it managed to hit the production rate of 4300 boe per day still having four wells behind pipe and waiting to be tied before the end of March.
Calima CEO and President Jordan Kevol said it had so far been a strong start to the new year for the company.
“2022 has started with a bang: seven wells drilled and two already adding to our production base, one of which is currently exceeding 500 boe/d (80 per cent oil), and our third generation Sparky wells are continuing to improve and are on their way to reaching peak oil and gas rates,” Mr Kevol said.
“With the West Texas Intermediate price at US$88/bbl and Western Canadian Select at C$95/bbl, 2022 is shaping up to be a significant year for the Company and shareholders.”
On Monday, shareholders seemed disheartened by Calima’s quarterly production report in which the company said December quarter production fell short of expectations.
Calima had forecast in September 2021 to produce roughly 4500 boe per day over the December quarter. Real December quarter production was closer to 3500 boe per day.
Calima said early production contributions from its Leo wells that commenced frac fluid flowback in mid-November were impeded by downhole operational challenges, leading to production delays and intermittent run-times on the wells.
Nevertheless, while two of the three Leo wells experienced production setbacks of the December quarter, today’s announcement from Calima seems to suggest production is back on track: the January figure of 4300 boe per day is in line with the company’s targetted average daily production of between 4000 and 5000 boe per day for the first half of 2022.
Shareholders have responded positively to today’s news, with Calima shares up 7.14 per cent to 22 cents each at 1:25 pm AEDT. The company has a $115.7 million market cap.