- Calima Energy (CE1) provides an update on plans for four of the company’s drilling programs in the Brooks Alberta asset area for Q3 2022
- The four programs, two Geminis and two Pisces wells will commence its drilling program in June 2022, one month ahead of schedule
- The drilling activities are designed to maximise free cash flow, while taking advantage of current high commodity prices, and maintaining and developing PDP reserves
- The total capital expenditure for the four well drill programs and Leo completion is budgeted at $7.8 million of which $4.8 million is estimated to be incurred prior to June 30
- CE1 shares are up 3.03 per cent, trading at 17 cents
Calima Energy (CE1) has provided an update on plans for four of the company’s drilling programs in the Brooks Alberta asset area for Q3 2022.
The four programs, two Geminis and two Pisces wells will commence its drilling program in June 2022, one month ahead of schedule.
The drilling activities are designed to maximise free cash flow, while taking advantage of current high commodity prices, and maintaining and developing PDP reserves.
The Gemini #8 well is a follow-up to the highly successful vertical Gemini #5 well drilled in Q1 2022 which will be drilled off the same pad as its predecessor and will be a low cost on-lease tie-in.
The well will tie into the recently completed Brooks Pipeline with fluids going directly to the 2-29 battery.
Gemini #9 is a follow-up to Gemini #3, one of the best performing Sunburst wells in the company’s core Brooks region.
The well will be drilled from the same pad and, like Gemini #8, will also be an on-lease tie-in.
Both Gemini wells are budgeted at a total of C$2.7 million (around A$3 million) to drills complete, equip and tie-in (DCE&T), and are expected to pay out in approximately six months with a reserve life of at least 10 years.
Pisces #4 is a follow-up to one of the best performing Glauconitic wells that Blackspur
drilled which commenced production in September 2018 with an IP30 of 507 barrels of oil per day (bopd) and has produced 130,000 barrels of oil to date.
Pisces #5, in which the company holds a 50 per cent working interest, is a follow up to a well drilled by Blackspur in 2014, which was an early generation Glauconitic fracture stimulated well with an IP30 of 213 bopd and has produced 85,000 barrels of oil to date.
The Pisces wells’ total DCE&T costs will be C$4.4 million (A$4.93 million) and are expected to pay out in about eight to nine months, also with a reserve life of at least 10 years.
The Holborn well (Leo #4), in which the company also owns 50 per cent working interest, was also drilled in a highly prospective area of Calima’s land base within a 40-metre oil bearing zone where no current reserves are booked for the Calima.
Calima said the success of the completion and subsequent production of Leo #4 has enabled the company to book new reserves in this area and plan future follow-up drilling, with production from the well expected in Q3 2022.
The total capital expenditure for the four well drill programs and Leo completion is budgeted at $7.8 million of which $4.8 million is estimated to be incurred prior to June 30.
Calima Energy shares were up 3.03 per cent, trading at 17 cents as of 11:34 am AEST.