Calima drilling Montney horizontal wells

Calima Energy’s first horizontal well at its Canadian Montney oil and gas play has reached the planned final location and the ASX listed company has now spudded the second horizontal well.

Once the second well is completed, the two wells will be fracture stimulated and placed on an extended production test.

This follows the successful drilling of the Calima-1 well earlier this month that appeared to confirm that the company’s acreage is comparable to adjacent producing areas to the south.

Calima Managing Director Alan Stein said: “The team in Canada continues to deliver excellent operational performance and we are delighted with the data received to date.”

“The Calima-1 well encountered a full sequence of the Montney Formation which is comparable to the sections being produced by other operators in the region and data recovered from the first horizontal well is also encouraging.”

The Calima-1 well intersected 256.5m of the target Montney Formation with both the top and base of the sequence being encountered very close to prognosis.

Notably, wireline log data confirms that porosities and hydrocarbon saturations within the Montney Formation in the well are comparable to those in adjacent producing wells such as Saguaro Resources’ C81G well.

Analysis of the Calima-1 log and core data also confirmed the presence of three zones within the Montney that match those zones already targeted by other operators in the region.

This includes the presence of valuable natural gas condensates in the Upper and Middle target intervals, which have been the focus of horizontal wells in the acreage immediately to the south of Calima’s land.

Calima currently owns a 100% interest in 72,014 acres of Montney drilling rights that it says could potentially host gross prospective resources of up to 2.16 trillion cubic feet of gas and 114.42 million barrels of liquids.

Successful testing of the Calima-2 and Calima-3 horizontal wells will allow the company to convert at least some of its resources from prospective to the higher confidence contingent level.

Share Price

Closing price for the last 90 trading days
Powered by Morningstar ®

Top 10 Shareholders

Substantial shareholders as published in the annual report.
Powered by Morningstar ®

Company Documents