Calima Energy has spudded the first of four wells into its highly productive project areas in Alberta, Canada as it looks to replicate the successful 2021 program that saw daily production tip over 4000 barrels of oil per day, or “bopd” and announce its maiden dividend. The company has a fifth well drilled that will be fracture stimulated and put into production later this month.
Gemini-8 has been spudded with drilling advancing into the Sunburst formation, or “Fm” in the Brooks project area. The well is a follow-up to the highly successful Gemini-5 vertical stratigraphic test well that was drilled earlier this year. Gemini-9 is chasing the same Sunburst formation and will be spudded in mid-June as a follow-up to the horizontal Gemini-3 well from July last year.
The program is targeting two known oil pools and are designed to extend the previously mapped boundaries of the Sunburst Fm based on information from Calima’s 3D seismic database.
The company is planning two more Pisces wells to follow up two of the top producing wells drilled into the Glauconitic Fm that have so far produced 188,000 barrels of oil equivalent, or “boe” and 224,000 boe. Pisces-4 and 5 will spud in late June or early July with Calima expecting an initial production rate of about 115bopd.
The Leo-4 step-out well in the North Thorsby area will be fracture stimulated late this month and production tested. It was drilled into the Sparky Fm to total depth of 4088 metres and outfitted with a 52 stage frac liner. Calima said the 50-per-cent-owned well has the potential to add considerably to reserves and further drilling locations in addition to increasing production levels.
Workovers to the Leo-1 and Leo-2 wells in the Sparky Fm in Thorsby are also in progress after they underwent successful coil tubing nitrogen cleanouts triggered by flow rates that were being compromised by frac sand, a relatively common occurrence in wells that have been fracked. The company says Leo-1 is back in production and the valves on Leo-2 are expected to be turned on today.
The Company has officially kicked off its post-spring break-up drilling program. The wells scheduled for Q3-2022 are getting a head start based on favourable weather conditions and the availability of a preferred drilling rig.
Drilling is anticipated to take 6 weeks for the 4 wells and first production is expected from the Gemini wells by 31 July as the wells are on lease tie-ins.
Calima’s revolving C$27 million credit facility with National Bank of Canada has been renewed, providing Calima with capital at a low 4 per cent cost it says can be used to fund working capital requirements and longer-term investment programs.
The financing was also amended to allow Calima to deliver its proposed $2.5 million dividend in September.
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© West Australian Newspapers Limited 2022
Calima kicks off four-well Canadian drilling program – The West Australian
