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Oil and gas exploration company, Calima Energy Limited (ASX:CE1) announced that Calima-2 Well (Calima 02 Hz Tommy a-054-C/094-G-09 ) in NE British Columbia, Canada is producing gas and light oil (or condensate) from the middle target in the Montney Formation (Rock Type).
The first stage of the production test, recovering the load water, injected during reservoir stimulation work is almost completed. The gas flow rises, with the decline in water rate, and is followed by the recovery of light oil and other natural gas liquids. In the concluding phase of the clean-up stage, the well was flowing at a rate of 1,640 boe/d comprising gas at ~ 9 mmcf/d, with light oil and other natural gas liquids at ~143 bbl/d.
As per the plan, the well would now be shut so that Production Tubing is installed, before it is brought back for production work. The tubing would enable the collection of additional data like downhole pressure. The company is anticipating that the production rates and the ratios of gas vs. light oil and natural gas liquids would keep on enhancing after the tube is installed.
The testing at Calima-3 has already begun with coiled tubing operations work being concluded over there. The well has commenced its clean- up process and the recovery of load water injected during reservoir stimulation was underway. Calima-3 well is performing in the same way as Calima-2 at this phase.
CE1 has retained GLJ Petroleum Consultants, which is one of Calgaryâs leading oil and gas consultancies, for analysing the test outcomes, as well as give commentary on the produced data. Additional details would be released after the data becomes available over the period of around next week. CE1 has alerted that provided information from the release is related to initial flow rates, and it might not be suggestive of the outcomes which would be gained upon the completion of the complete testing programme, or from a long period of production. The company would provide additional updates after the stabilised flow rates are established.
Mr Alan Stein, Calimaâs MD said that the company was very happy with the initial production rates from Calima-2 well, which fared favourably when compared to other wells in the area. It was an exciting period for the shareholders of Calima, and the company is looking ahead to release further outcomes in the next few days. He further added that the outstanding performance by Calima-2 well provided basic data required to the company, to calculate the metrics to exhibit that it had opened a new liquid-rich Montney play in the British Columbia region.
On 13 March 2019, CE1 published its investorsâ presentation report.
Recently, the company notified the market that it had concluded a 92-stage reservoir stimulation operation at Calima-2 well.
The stock of the company closed the dayâs session 2% down at A$0.0049 (as on 22 March). It has a market capitalisation of A$72.24 million with circa 1.44 billion shares outstanding. The stock of the company has generated a return of 19.5% in the last 3 months, and its YTD return stands at 6.38%.
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