International oil and gas company, Calima Energy Limited (ASX: CE1) made an announcement on 8 March 2019 stating that it has completed a 92-stage reservoir stimulation operation over the 2,508m lateral section at the Calima-2 well testing a Middle Montney target.
Further, the company also informed that the reservoir section targeted by the Calima-2 well has taken up the full proppant load of 45 tons per stage or 1.5t/m at almost every stage location. The loading of 45 tons per stage was delivered on schedule and it was within budget across almost every one of the 92 stages in the Calima-2 well. All of this is making excellent conditions for production testing which is going to commence in around seven days.
The company has also published its investor presentation for March 2019. In the presentation, the company has provided an update on its major project – The Monotney. In 2018, the company invested more than C$5.0 Billion in The Monotney which is the most active oil & gas play in Canada. It is expected that by the year 2022, the company will have an investment of around C$7.5 billion in The Monotney. The company reported 7 Billion cf/d of gas production at the project which is around 24% higher than the last twelve months. Further, the company reported condensate production of 250,000 bbl/d and it is predicted to increase to 500,000 bbl/d by 2022.
In 2018 the company spudded 870 Montney wells which is 68% higher than in 2016. Montney gas is currently sold into North American markets, and it is priced at a steep discount to Henry Hub gas prices in the US. The discount to Henry Hub is predicted to close over the near term but pricing remains linked to North American markets.
The company currently owns around 72,000 acres of drilling rights in northeast British Columbia – The Calima Lands. In the presentation, the company informed that Calima’s prospective resources based on 400 well locations is 475 million barrel of oil equivalent (mmboe).
In the presentation, the company also provided information on its three well drilling programme. The company has finish drilling of its 1st and 2nd horizontal well and interim results of those are expected to come out in Mid-March. The Final test results and synopsis is expected to come by the end of March 2019.
Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. The company’s shares are trading at a price of $0.048, up by 4.348% during the day’s trade with a market capitalisation of circa $66.46 Mn as on 8 March 2019 (AEST 4:00 PM). The counter opened the day at $0.046 and reached the day’s high of $0.050 and touched a day’s low of $0.046 with a daily volume of ~ 1,146,841. The stock has provided a year till date return of -2.13 percent & also posted returns of -16.36%, -2.13% & -8% over the past six months, three & one-months period respectively. It had a 52-week high price of $0.067 and touched 52 weeks low of $0.039, with an average volume of ~797,115.
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