Calima (ASX:CE1) boosts production by 900boe/d from wells drilled during Q2-Q3

Highlights

• Calima Energy has successfully tied all five wells to production that were drilled/completed during Q2/Q3.
• The wells Leo# 4, Pisces # 4 & 5, and Gemini# 8 & 9 are contributing nearly 900 boe/d.
• Calima intends to release development plans for Q4 in the coming weeks.

Calima Energy Limited (ASX:CE1|OTCQB:CLMEF) is celebrating not an overnight success but a culmination of well-planned outstanding efforts, as all wells from its recent campaign are on production.

The drilling and completion program undertaken during the second and third quarters of 2022 has started to pay attractive returns now. All the five wells drilled/completed during the reported period have started contributing ~900boe/d, with ~600boe/d net to Calima.

Calima operates producing assets in the Brooks and Thorsby areas of Alberta in Canada. The company undertook a significant field development program to boost its production. The decision to drill more wells seems apt amid strong WTI crude oil price environment.

For more details on Calima’s strategy, click here.

Overview of the five-well drilling program

Calima drilled four wells in the Brooks area, targeting the Sunburst and Glauconitic formations. The company drilled two horizontal wells on each of these formations - Gemini #8 & 9 on Sunburst and Pisces #4 & 5 on Glauconitic.

Besides these four wells, Calima tied in the Leo# 4 well drilled targeting the Sparky formation in the Thorsby area. The well was fractured stimulated and was put into flow testing on 18 July 2022. Leo# 4 will have an extended clean-up period before its reliable flow rate can be calculated. This is because of the large-scale, high-intensity fracture stimulation and the volume of the fracturing fluid pumped into the reservoir.

The Pisces# 4 well drilled on the Glauconitic formation is a follow-up to the most productive well 15-36 on the formation. The 15-36 well has produced 135,000 bbl of oil and 0.3 bcf of gas since mid-2018. Calima has a 100% working interest in Pisces #4, which was tied to production on 17 August 2022.

In the Pisces# 5 well, CE1 has a 50% working interest. It is a follow-up well to the 04-05 well, which was drilled back in 2014 and produced nearly 86,000 bbl of oil and 0.8 bcf of gas since then. The company anticipates Pisces #5 to outperform 04-05.

Gemini #8 & 9 drilled on the Sunburst formation were designed to extend the previously identified pool boundaries.

Well locations in Brooks and Thorsby area (Image source: CE1 update, 1 September 2022)

The Leo# 4 well was drilled in January 2022 in North Thorsby. The step-out well was fractured simulated with a 52-stage frac liner. The well has been on production since 17 July 2022, and the cleaning operations are underway.

The first eight months of production data for the Leo #1–3 wells that were drilled in Q4–2021 and started producing in December–January are now available.

Image source: CE1 update, 1 September 2022

The production curve above shows the average cumulative production from the wells since they were first drilled. It depicts the average production rates and associated declines over that time, as well as the predicted average future decline rates, while comparing them to the internal type curve that was used for budgeting.

With over 218,850 boe produced through 31 July 2022, the company is happy with the production rates attained and is currently planning an additional Thorsby Leo drilling campaign.

CE1 shares traded at AU$0.135 on 2 September 2022.