Canada-based oil and gas producer Calima Energy (ASX:CE1) reports it has increased production across its portfolio to more than 4,500 barrels of oil equivalent per day (boe/d).
The company states this level of production has been achieved with the commencement of production from the Pisces 6 and 7 wells located at the Brooks Operation started pumping oil on 29 December 2022. It also notes the current rate of production has been maintained during the first week of January.
Calima reports the 2 new wells are in the process of ‘cleaning-up’ and are producing back the frac fluid into the reservoir as part of the completion, however, the company states they are already producing hydrocarbons at strong rates.
It is expected these wells will be fully cleaned-up and producing at peak rates within 30 days of initial production. The company also notes the 3 recently drilled Sunburst wells, Gemini 10, 11 and 12, are all on production and on average have achieved the initial peak 30-day rates about 35% higher than budgeted type curves.
Current production from the 3 wells is about 420 boe/d (gross), and 370 boe/d (net).
Commenting on the increased production, Calima Energy Chief Executive Officer (CEO) and President Jordan Kevol says: “After a drilling break in December to get Pisces 6 and 7 completed and tied in, we have brought the rig back to drill another 2 Pisces Glauconitic wells.
These wells are being drilled into a known Glauconitic pool which was proved up in 2020. We are excited to be drilling these 2 follow-up wells that will both have a more intensive fracture completion compared to the 2020 well in the same pool.
The production from our successful fourth quarter Gemini campaign, coupled with Pisces 6 and 7 now on production and cleaning up has increased corporate production rates to a current peak of 4,500 boe/d, which is above budgeted rates for January.
The drilling of Pisces 8 and 9 will further contribute to production rates in late Q1 and into Q2. Plans are in the works for more wells to be drilled in Both Brooks and Thorsby for late Q2 and Q3 2022.”
Calima reports it has commenced a 2 well drilling campaign at Brooks, located in Calgary, Canada for the first quarter of 2023. This program will consist of drilling 2 horizontal Glauconitic Formation wells (Pisces #8 and #9) off the same pad, which will provide savings and efficiencies on drilling, fracture completion, and gas tie-in infrastructure.
The company expects each well will take about 10 days to drill, with completion operations to commence shortly after drilling. Both Pisces #8 and #9 are planned to have a 2,750m long horizontal section which would be comparable to Pisces 2, which is the longest Glauconitic well drilled by Calima to date.
Calima states reservoir conditions, geology, and directional drilling factors will dictate if the wells reach the extended total depth, and both wells are expected to be completed and ready to be production tested in late February.
The company says these wells are a follow-up to well 12-23 drilled by the company, which peaked at 217 boe/d and has cumulatively produced over 132,000 barrels of oil since it came on production in 2020.
Furthermore, Pisces 8 and 9 are planned to be about 15% longer with 60% more fracs than the 12-23 well. Calima anticipates these wells will have a higher production and reserve expectation compared to 12-23.
Calima Energy is an oil and gas producer operating in Western Canada. The company’s operations include the Brooks Operation in Calgary which averaged 2,400 boe/d in February 2022; the Thorsby Operation in Alberta which averaged 1,825 boe/d in February 2022; as well as the Montney Operation in British Columbia which can potentially produce up to 11,000 boe/d.
Images: Calima Energy Limited
