Calima Energy Ltd (ASX:CE1) has completed the drilling of the Gemini #4 well in Alberta, Canada, and production is expected by July 28, 2021.
A total of four Gemini Brooks Sunburst wells have now been drilled, completing the four-well Brooks Alberta program.
Revenues from these wells will be recognised partially in July and from August onwards.
Gemini 1-3 wells were drilled within the existing known reserves, whilst Gemini #4 is a step-out well and if successful, has the potential to add reserves to the company’s P1 and P2 reserves.
Drill program on budget
Calima Energy chief executive officer and president Jordan Kevol said: “The company has finished drilling its four-well Brooks Alberta program.
“We are very pleased with the efficiency and expediency that the Calima operations team executed on this program.
“The drill program costs (drilling, completion and tie-in) to date are on budget.
“The rig has been released, and we are now preparing for our next drilling program at Thorsby, Alberta, which is anticipated to commence in late August, pending nearby drilling rig scheduling.
“Three multi-stage fractured horizontal wells are planned for the Thorsby program.
“Initial production results from the recent Brooks program will become available later this quarter.”
Initial production period
The downhole pressure recorders will be pulled in about seven days, at which time completions will begin.
Gas will be tied into a nearby third-party facility, and the fluid trucked to a Blackspur oil processing facility.
The well drilled in the Alderson strike area, near Brooks Alberta, is a new area of focus for the company.
This well is anticipated to be in production on July 28, 2020, at which time the clean-up period will commence.
Clean-up typically lasts 5-10 days following which the 30-day initial production period will begin.
Next steps
Three Thorsby development wells - designated Leo #1, #2, and #3 wells - are scheduled for drilling, completion and tie-in in the third quarter.
The drilling campaign is designed to achieve year-end production guidance of 4,500 boep/d and the generation of sustainable free cash flow.