Calima Energy Ltd (ASX:CE1) is working towards reaching its peak production goal of 4,500 boe/day for the three Leo wells at Throsby asset in Alberta, Canada, next month.
The wells began frac fluid flow back in mid-November, however, a number of downtime events occurred which have delayed the wells reaching peak daily production.
During the third week of December, production levels exceeded 3,800 boe/d and the company was well on its way to achieving 4,500 boe/d by December 31.
On December 23, Leo #3 encountered a downtime event requiring a well intervention which could not be resolved until January 3, 2022, due to:
- Limited services between Christmas and New Year;
- The Province of Alberta has had an intense resurgence of COVID via the Omicron variant which has limited the availability of manpower; and
- Extremely cold (-45 Celsius) weather conditions, rig and manpower mobilization had been restricted until January 3, 2022.
'Clean up' continues
Despite the extreme cold, the three Leo wells at Thorsby continue to “clean up” from their fracture stimulations.
These Leo wells are the first third-generation Sparky wells with extended reach wellbores and more intensive fracture completions.
To ensure optimum production for the life of the wells, the company continuously monitors well productivity, water cut, GOR (gas/oil ratio) and solids production to ensure the optimal surface.
In addition, the bottom hole pumping system has been selected to match the well characteristics so that the wells deliver their maximum economic returns rather than short term flow rates.
Promisingly, two of the three wells have achieved excellent run times and production results, but the third well requires additional work to optimise, which is not unusual when drilling extended wells.
Leo #1
Leo #1 commenced flow back on November 15, 2021, with formation hydrocarbons present on November 17.
This well continues to clean up and has remained on production since its last workover in mid-December.
Once the load is fully recovered, the well is expected to produce at a stabilized oil cut of 55%, which is expected to result in peak production of 450-550 boe/d.
Leo #2
Leo #2 commenced flow back on November 16, with formation hydrocarbons present on November 17, 2021.
This well continues to clean up and has remained on production since start-up, producing more than 420 boe/d
Once the load is fully recovered, the well is expected to produce at a stabilized oil cut of 55%, which is expected to result in peak production of 450-550 boe/d.
Leo #3
Leo #3 commenced flow back on November 8, with formation hydrocarbons present on November 10, 2021.
The well has been down since December 23, 2021, due to frac sand entering the drill bore, causing the pump to fail.
Prior to the well going down, water cuts on the well had improved to ~50%, and the well was producing approximately 380 boe/d.
Once the load is fully recovered, the well is expected to produce at a stabilized oil cut of 75%, which is expected to result in peak production of 500-600 boe/day.