Oil and gas exploration company, Calima Energy Limited (ASX: CE1) updated on production testing in the Calima-2 Well in NE British Columbia, Canada.
In the clean-up stage of the production test, the maximum flow rate obtained was 10.2 mmcf/d. The ratio of liquids to gas demonstrated a continuous improvement, while the well was cleaning up. Based on the collected latest production numbers, instantly before the installation of production tubing, the condensate to gas ratio (CGR) ascended to 17.6 bbl/mmcf. On the assumption of typical plant recoveries for Montney liquids-rich gas, it would equate to a final CGR of 35 to 38 bbl/mmcf.
Based on the other outcomes in the region, CGR would be expected to improve after the wells are brought on long-term production and the gas production rate is optimised. When compared to the adjacent wells, it was suggested that Calima-2 Well should match or surpass the liquids rates from nearby regions.
Mr. Alan Stein, MD, CE1 said that the solid outcomes have been demonstrated by Calima-2, which has strengthened the company’s belief that it has opened a fresh extension to the liquids-rich Montney play in British Columbia. In Canada, the team has done an outstanding job for the collection of data, CE1 had requirement for in a race against time ahead of the winter end. In common with most of the new areas throughout the Montney, there is a chance to function on the frozen ground.
Since the company has all the positive results, building all-weather access could be planned now. CE1 is successfully accumulating all the data it requires to determine precisely how it can anticipate the wells in the region to perform. The company can also give their collected data to its reserve auditors as the basis of an updated report.
CE1 had retained GLJ Petroleum Consultants, a Calgary’s leading oil and gas consultancy, for analysing the test’s outcomes. Further details on this would be given, when the data is presented in the next 14 days. However, some initial data offered by GLJ reflects that Calima-2 Well has delivered good performance in the upper quartile of the peer group.
While analysing the outcomes, Mr. Michael Morgan, Director of Analytics at GLJ Petroleum Consultants, Calgary stated that while reviewing the test results, it appeared that Calima-2 Well would be meeting its main goal in matching or surpassing the performance of nearby wells. The gas and light oil or condensate flow rates have compared very favourably with the peer group at the initial phase of testing.
The stock of the company is currently trading at A$0.047 (as on 25 March 2019, 3:43 pm AEST), down by 6% from its previous close. CE1 has a market capitalisation of around $72.24 million, with approximately 1.44 billion outstanding shares. Its 52-weeks high was noted at $0.067, and the 52-weeks low was noted at $0.039. The stock has given a yield of -1.96% in the last six months. However, it generated a yield of 19.05% in the last three months, and YTD stands at 6.38%.
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