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Calima keeps drill bit turning, Alberta oil flowing

ASX-listed Canadian oil producer Calima Energy has kept the momentum going at its Alberta operations with three new wells drilled and another two frac-ready as it aims to keep its production levels pumping above 4100 barrels of oil per day whilst the West Texas Intermediate price hovers at a profitable US$108 per barrel.

The company has drilled two more Pisces-series wells in the glauconitic formation, follow-ups to very successful earlier wells drilled by Calima subsidiary Blackspur before its acquisition. Pisces-4 and 5 have been drilled and have frac-liners installed. Calima says Pisces-4 has a 33-stage frac-liner cemented in place as the company looks to emulate its 15-36 well, the most productive glauconitic well producing 133,000 barrels of oil since being spudded in mid-2018.

The Pisces-5 well, where Calima has a 50 per cent working interest, is also a follow-up to a 2014 glauconitic well producing 86,000 barrels of oil with a 17-stage frac-liner. Pisces-5 will have a larger 25-30-stage frac-liner and Calima expects it to outperform the earlier 04-05 well.

Two more Gemini wells, 8 and 9, have been completed and tied in, with production expected to start flowing within weeks. Oil and gas shows were seen in Gemini-9 as expected.

The fracking of the Leo-4 stepout well has been completed in the North Thorsby project area. It has a 52-stage frac-liner drilled into the Sparky Formation and will be shut in for two weeks whilst a temporary oil tank farm is set up and the gas sales pipeline is connected, after that the well will be put on an extended production test.

The company says planned maintenance on its third-party gas processor at Thorsby has been completed and is back at full production after being choked back by about 600 barrels of oil equivalent per day for a week whilst work was being carried out.

It has also installed a new gas compressor on its 2-29 processing hub within a week of the original going down, temporarily cutting production by 50 per cent. Calima said it will refurbish the old compressor and retain it in inventory.

Gemini-8 and 9 and Pisces-4 have been successfully drilled. The company is pleased with the successful Leo-4 fracture stimulation and is looking forward to the subsequent flow-test program. Well downtime has affected our average production for June with our 3rd party gas plant requiring maintenance at Thorsby and mechanical failure of the compressor at Brooks 2-29. However, production is on track to be back at 4100 boe in early July.

Kevol says the company expected Gemini-8 and 9 to be on production and adding to Calima’s volumes and revenue over the coming weeks.

Calima Energy is planning to issue its maiden dividend later this year.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au

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