- Calima Energy (CE1) reports “strong” gas flows and liquid yields from early flow tests of its Calima 2 and Calima 3 wells within its Montney project in Canada
- The company says the initial test results from the wells exceeded its expectations compared to a 2019 testing program
- The combined peak flow rate of both wells was over 11.5 million cubic feet per day, and CE1 produced more than 3500 bbls of condensate during testing
- The flow testing is expected to continue for the next three to ten days, after which point the wells will be shut down to gather downhole pressure build-up data
- Shares in Calima Energy are up 3.7 per cent, trading at 14 cents at 2:55 pm AEDT
Calima Energy Limited (CE1) has reported “strong” gas flows and liquid yields from early flow tests of its Calima 2 and Calima 3 wells at its Montney project in western Canada.
The company said the initial test results from the wells, which lay on the border of Alberta and British Columbia, have exceeded company expectations compared to a 2019 testing program.
The Calima 2 well tested at a maximum constrained rate of 6.3 million cubic feet per day (mmcf/d), with a condensate production rate of 248 barrels of oil/million cubic feet (bbl/mmcf). In 2019, the maximum rate was 22 bbl/mmcf, though CE1 said the increased rate reflected flush production, and the stabilised rate would likely be lower.
Calima 2 averaged 102 bbl/mmcf during the test compared to the average production of 22 bbl/mmcf in 2019.
Meanwhile, the Calima 3 well flowed up to 5.25 mmcf/d, with 8.4 bbl/mmcf of condensate.
This means the combined peak flow rate of both wells was over 11.5 mmcf/d. CE1 produced more than 3500 bbls of condensate during testing, which it said it was selling at a premium to West Texas Intermediate (WTI) prices.
The company noted, however, this was wellhead condensate only and excluded anticipated natural liquid gas (NGL) to be recovered in future gas processing.
Calima Energy CEO and President Jordan Kevol said the company was “very pleased” with the results from the extended well tests so far.
“Further desktop evaluation of the data will be undertaken to determine type curves, production yields reserve modelling and various development scenarios,” Mr Kevol said.
“The strong gas flows and liquid yields underpin our confidence in this project and support our ongoing field development planning and financing endeavours.”
The flow testing is expected to continue for the next three to ten days, after which point the wells will be shut down to gather downhole pressure build-up data.
Meanwhile, CE1 said it would begin construction work on a pipeline connecting the Calima 2 and 3 wells to the nearby Tommy Lakes infrastructure “shortly”. Tommy Lakes lies to the north of Calima’s wells and offers the “closest, most cost-effective” tie-in to processing facilities and regional pipeline networks, according to the company.
Shares in Calima Energy are up 3.7 per cent, trading at 14 cents at 2:55 pm AEDT.