AUS
NZ
UK
CA
USA
IND
Summary
- Stock of Calima Energy marked an uptick of 25 per cent midday on 3rd September 2020. Calima is in the process of extracting data points from its previous drilling campaign.
- Calima has engaged Canadian Discovery to complete an in-depth analysis of the Calima 1 core.
- The Company also expects to retrieve downhole pressure gauges from its 2019 drilling campaign in Calima 2 and 3 wells after over 18 months. The build-up reports from the gauges are anticipated during the second week of September 2020.
- Downhole gauge recovery and Calima 1 core analysis are expected to provide valuable data to determine long-term reservoir performance.
Stock of ASX-listed oil & gas player, Calima Energy Limited (ASX: CE1) soared by 25 per cent to $0.010 midday on 3rd September 2020 before settling the day’s trade at $0.009. The company seems to have garnered significant investor traction following the release of important update on the Calima Lands. The update stated that the Company is in the process of extracting data points from its previous drilling campaign, unlocking more value from the Montney asset.
Calima operates over 60,000 acres of drilling rights in Canada’s British Columbia via its development-ready project, Calima Lands. Recently, McDaniel’s resource upgrade at Calima Lands uplifted 248.9 Bcfg (billion cubic feet of gas) and 12.4 Mmbo (million barrels of oil) of Contingent Resources to Development Pending category. The Company now intends to bring its flagship project on-stream as soon as possible.
Must Read! Calima Energy in Year 2020: What’s Done and What’s Ahead?
The recent activities related to mergers & acquisitions (M&As) in the Montney Play have exhibited that appetite for the Montney exists and leading exploration & production (E&P) companies are bolstering their Montney positions through consolidation.
As per the Company, momentum behind the surge in acquisition in the Montney area can be attributed to a number of factors, as summarised in the below figure:
In-Depth Analysis of Calima 1 Core Underway
Calima has recently engaged Canadian Discovery to complete an in-depth analysis of Calima 1 core, the most noteworthy Montney core retrieved so far. The Company informed that the core from Calima-1 has been transferred to Calgary for this activity and will be made available for peer review.
The firm that will assist in the further analysis of Calima 1 core, Canadian Discovery holds a rich experience of 30 years working in the Western Canadian Sedimentary Basin while carrying out detailed geological studies. Besides, the firm has stayed in the vanguard of resource play evaluations as they have surfaced and been optimised.
The other key reasons for which Calima Energy has chosen Canadian Discovery for this exercise, include:
The Canadian Discovery study will amalgamate the extensive amount of data already accumulated and integrate this data into their current exclusive regional stratigraphic framework and set of regional hydrodynamics, geothermics and fluids distribution mapping for the Montney Formation.
This activity is expected to deliver the following benefits:
- provide a comprehensive picture of Calima Lands’ liquids production potential, and
- ensure the overall value of the acreage is considered in the development models.
Significance of Calima 1 Core
Calima 1 core, totalling 230m, was obtained during the Company’s 2019 winter drilling campaign through target Montney Formation (1,571-1,801m). The core encompassed ~90 per cent of the entire Montney interval and comprises lower Montney that is a rarity in Montney core.
AGAT Laboratories, in 2019, found that Calima’s core had considerably elevated oil saturation values, which measure up to 64 per cent in the Middle Montney target and 59 per cent in the Upper Montney target. These values are greater than those logged in adjacent tests. Subsequently, wireline log analyses also validated exceptional reservoir properties of Calima’s core relative to nearby wells.
These results were crucial in completing McDaniel’s 2019 and 2020 reservoir reserve reports, which confirmed the liquids-rich nature of the Calima Lands.
Downhole Pressure Gauges to be Retrieved from Calima 2 and 3 Wells
Calima also expects to retrieve downhole pressure gauges from its 2019 drilling campaign in Calima 2 and 3 wells after over 18 months. The retrieval and analysis of the downhole pressure gauges is likely to provide McDaniel with additional data to help optimise production profiles and Estimated Ultimate Recovery’s (EUR) from the Upper and Middle Montney.
As per the Company, this data is expected to support in establishing the over-pressured boundaries of the Montney Formation in the area. The Company anticipates receiving build-up reports from the gauges during the second week of September 2020.
