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Calima Energy (ASX:CE1) provides update on Gemini well drilling

Energy
ASX:CE1      MCAP $80.71M
18 June 2021 04:00 (AEST)

The Calima Energy team. Source: Calima Energy Twitter

Oil and gas producer Calima Energy (CE1) has provided an update on its Gemini drilling campaign in Alberta, Canada.

CE1 said drilling had wrapped up at Gemini well two, with the work program coming in C$100,00 (around A$106,860) under budget.

The well had a total drilling time of of 7 days, including spud to rig release, and hit a total depth of 1686 metres.

Pleasingly, the company said oil and gas shows were recorded in the well, as predicted.

Following this work, CE1 was planning to send the drill rig to Gemini well one, where the well will be re-entered at a cost of $350,000 (about A$374,000).

The re-entry comes after 3D seismic interpretation indicated that the well can be further optimized out of the same intermediate casing.

Once this work is completed, the company will send the rig to Gemini well three and then on to Gemini well four.

“I am pleased with the solid progress of the Gemini drilling campaign and happy we were able to efficiently optimise the Gemini one well whilst the rig is close by,”

“Calima has committed to drilling an additional well in the campaign and continues to review adding one more Sunburst well.

“With the oil price above $70 WTI the Company is very enthusiastic about completing our top-tier Sunburst program.”

The Gemini wells are part of the Sunburst formation and CE1 said these wells will flow into the existing Blackspur facilities – which Calima recently acquired.

Shares in Calima Energy were trading at 0.8 cents each at the close of market on Thursday, June 17.

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