- Calima Energy (CE1) has reported flow rates from three wells operated by its recently acquired subsidiary, Blackspur Oil
- The wells are producing approximately 505 barrels of oil equivalent per day (BOEPD) combined, bringing total current production to 2818 BOEPD
- Calima Energy is now planning a drilling program to develop its proven reserves over the coming months
- If energy prices remain strong in coming weeks, the company may also consider accelerating its 2021/22 drilling campaign
- Calima Energy is in the grey and trading at 0.9 cents per share
Calima Energy (CE1) has reported flow rates from three wells operated by its recently acquired subsidiary, Blackspur Oil.
The company acquired oil and gas company Blackspur Oil in late February, making it a wholly owned Calima subsidiary.
The report pertains to three horizontal sunburst formation operations located in Blackspur’s core Brooks area, consisting of two new wells and one re-entry. The three wells are currently producing approximately 505 barrels of oil equivalent per day (BOEPD) combined, on an IP30 basis.
This has brought total current production to roughly 2,818 BOEPD, a 14 per cent increase from Blackspur’s first-quarter production of 2,475 BOEPD.
Calima Energy’s President and CEO, Jordan Kevol, welcomed the results of the well program, which have helped the company to exceed its existing type curve averages and improve operational performance.
“505 boe/d on C$2.2 million of capital deployed is an excellent result,” he said.
“We are optimistic that the results will continue to improve with time, as the most recent well to come on production is still cleaning up, and has the potential for increased production,” he added.
Jordan went on to say that the company plans to resume drilling operations in the coming weeks and hopes to accelerate its 2021 well programs.
However, this potential acceleration will depend on energy prices remaining strong over the coming weeks.
Regardless, Calima Energy is still planning an active, low-risk drilling program to develop its proven reserves. Drilling at the three sunburst wells in the Brooks area will start late in May 2021, with drilling at the three sparky wells in Thorsby commencing in mid-July.
This drilling will be funded by the company’s operating revenue, which currently stands at C$4 million (roughly A$4.22 million) a month. Funding will also be provided through a working capital facility with the National Bank of Canada.
Calima Energy is in the grey, trading at 0.9 cents per share at 10:06 am AEST.