Calima keeps drillers busy searching for oil in Canada

Canadian energy producer Calima Energy is planning an aggressive 60-well drilling campaign over the next five years, primarily targeting proven drill sites in its Brooks and Thorsby project areas to add additional low-risk oil production.

The company said the majority of the wells are aimed at converting Proven Undeveloped Locations, or “PUDs,” into cash-generating producing wells.

Eleven of the 12 wells drilled by Calima in 2022 were in similar PUD targets.

Calima’s subsidiary, Blackspur Oil Corp, estimates in its Reserves Report and Updated Development Plan that it will take approximately 228 wells to effectively develop its entire reserve position on its existing lands.

The company said the targeted asset bases of Brooks and Thorsby, combined with high-quality infill drilling and careful production management, allowed it to maintain a stable reserves position after production of 1.1 million barrels of oil equivalent, or “BOE” since December 31, 2020.

Interestingly, 90% of Calima’s Brooks and Thorsby undeveloped acreage currently has no reserved reserves, a fact the company says represents significant upside potential from its current numbers.

Its drilling program for the year calls for 13 wells, including three Thorsby Sparky Formation, or “Fm” wells, four Brooks Sunburst Fm wells and six Brooks Glauconite Fm wells at a cost of between $1 million and $3.4 million. Canadians each, according to the scale. and complexity.

Resource figures for the Montney project were increased slightly to 213.3 million cubic feet of gas, or “mmcf” and 10.1 million barrels of light oil, or “mmbo” and natural gas liquids, from 212 .8 mmcf and 10.8 mmbo of contingent resources.

Calima said a significant portion of its Montney acreage in northern Alberta is ready for development, only needing the funding to build a connecting pipeline before it can be classified as 2P reserves.

Activity at Montney has picked up significantly around the Calima acreage, with management very encouraged by the production results from nearby wells.

A key part of Calima’s growth has been construction of the Brooks Pipeline which is nearing completion and appears to be under budget, according to the company.

The pipeline will connect its 2-29 Bantry oil battery in the northern part of the field, to the recently drilled Gemini #5, #6, #7 and Pisces #3 wells in the south and provide export capability for planned production increases from in the heart of Brooks Properties.

Calima said she was continuing with the Countess J2J pool flooding operation and expecting results in the short term. A pilot flood and full battery construction was completed in early 2020, with expansion planned for later in the year and an eventual field-scale flood development target of 2023.

The increased inflow to existing horizontal production wells indicates that water injection is working and the initial response to water injection is consistent with reservoir modeling, according to the company.

A rise in global energy prices has put liquid natural gas in the spotlight, which could mean renewed interest and new export markets for Calima.

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