Calima Energy Ltd (ASX:CE1) has released the drill rig after completing the Gemini #6 and #7 Sunburst horizontal wells at the Brooks area of interest, while Leo #4 at North Thorsby has reached total planned depth.
Pisces #1 and #2 have been tied into the 2-29 battery and are on-stream as of January 27, with both wells showing signs of oil in the flowback fluid within hours of beginning the process.
The capital program has been funded with operational cash flows and Calima’s credit facility.
Capitalising on rising energy “super cycle”
“The company has finished drilling its 3-well Gemini Brooks Alberta program,” Calima Energy CEO and president Jordan Kevol said.
“This program consisted of a vertical stratigraphic test well targeting the Sunburst (Gemini #5) in a previously undrilled portion of our Sunburst fairway, plus two horizontal wells that were designed to extend the extent of known pools.
“The drill costs to date are on budget, and we are very pleased with the geological results of both the stratigraphic test, and the two horizontals.
“The rig has been released from Gemini #7, and this concludes the Brooks drilling for the quarter.
“We have started 2022 with a bang, having expedited our program by spudding two wells in December 2021, followed by five more in January 2022, the company is well on its way to estimated production targets of 4,000 - 5,000 barrels of oil equivalent (boe) per day this half-year.
“With the continued production increases being seen on Leo 1-3 combined with Pisces 1&2 now on production, we are pleased to be taking advantage of a growing production base in a rising energy super cycle.”
The Leo #4 Well (50% well interest) was spud on 20 January 2022 and reached total depth of 4,088 metres measured depth on January 27.
Gemini #6 & #7 (100% WI), the 2nd and 3rd Sunburst wells of the 2022 drilling campaign, have both reached total depth and the rig was released on 27 January 2022.
The wells were drilled to measured depths of about 1,855 metres, and 1,970 metres and each well took six days to drill.
About Calima Energy
Calima Energy’s business strategy is counter-cyclical, designed to take advantage of momentum returning to the oil and gas sector after the savage downturn in global oil and gas prices that started in 2014.
The company’s core asset lies within a liquids-rich sweet-spot of the Monetary Formation in northeast British Columbia, where it has been able to covert around 60% of its total 63,000 acres holding to a 10-year lease through a successful exploratory drilling program.
Calima has also merged with Blackspur Oil Corp, a privately held Canadian company with oil and natural gas assets in two core areas within Alberta - at Brooks and Thorsby.