Early oil shows promising for Calima in Canada

The pace of activity at Calima Energy’s Canadian operations has not slowed, with two wells being drilled, a third in its final stages and early signs of oil while flowing back frac fluid from yet another two wells.

The production kit has been installed at its Pisces 1 and 2 wells, part of the company’s 100 per cent owned Brooks project in Alberta, Canada and they have been tied back into the Bantry 2-29 treatment plant as the frac fluid unloads from the wells.

Calima said Pisces 2 came on stream on Australia Day and its well-side operators started seeing signs of oil in the frac fluid flowing back from the well within hours. Pisces 1 came on stream the following day and within hours, also started seeing signs of oil in the flowback fluid.

The company is waiting for frac crews for its Pisces 3 well and that well will similarly be tied into the 2-29 battery at Bantry once the stimulation and testing has been completed.

Calima’s horizontally drilled Leo 4 well is about to have its frac liner installed after having reached total depth and the rig is due to be released in several days.

Leo 4 is targeting the productive Sparky Formation channel sands which the company says contains some of the thickest oil columns in the regional area. Some sections have been estimated to have 28 million barrels, or “mmbbl” of oil.

There are no horizontal wells testing the intervals in Calima’s permits and if successfully drilled, Calima said the area provides the potential for significant locations and reserves growth in the Thorsby fairway over time.

The company plans to frac and tie-in the new well in mid to late 2022 depending on weather and logistics.

Calima also finished its three-hole Gemini well drilling program at the Brooks project area, drilling the final Gemini 6 and 7 horizontal wells in less than a week each. All three wells will be tested and if successful will be tied into the Bantry handling facility.

These wells were designed to extend the previously identified oil pool boundaries Calima’s explorationists had picked out from the company’s extensive 3D seismic database.

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 boe/d this half year. With the continued production increases being seen on Leo 1-3 combined with Pisces 1 and 2 now on production, we are pleased to be taking advantage of a growing production base in a rising energy super cycle.

Calima’s game plan looks to be on track and with drilling virtually completed and frac crews being scheduled, eager eyes will be watching to see exactly how many barrels per day will flow into the Calima coffers.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au