New gas resource estimate shines spotlight on Calima
An independent geologists report in Canada has backed Calima Energy’s assertion of a bountiful, liquids-rich gas resource in the sweet spots of its Montney Formation acreage in British Columbia.
In a resource report released to the ASX this week, Calima announced that geological consulting firm McDaniel and Associates had estimated that Calima’s acreage could potentially deliver 2.1Tcf of recoverable gas and 114million barrels of condensate and other gas liquids.
McDaniel reached this verdict by reviewing new mapping undertaken by Calima and analysing recent neighbouring wells drilled by Saguaro Resources on a rich piece of real estate just to the south of Calima’s leases.
Saguaro holds 110,000 acres in its portfolio and is one of the big success stories of the Montney Formation - having risen from a 117 barrel a day minnow in 2012 to a serious 12,000 boe/day player last year.
The Calgary-based company now has enough de-risked drilling locations in its portfolio to support estimated growth of up to 140,000 boe/day within ten years and Calima has every intention of taking its rags to riches cue from the independent trailblazer.
Calima already holds a 20% stake in the Calima Lands and has the right to acquire up to 55% in the joint venture.
Alan Stein, Calima Managing Director, commented: “This is an excellent result which significantly increases our confidence in the potential of the Montney Formation in the Calima Lands. This independent estimate of prospective resources confirms the significant scale of the project.”
“With an estimated 2.1Tcf of recoverable gas and 114Mmbbl of condensate and other natural gas liquids, the Calima Lands are able to be developed as a standalone project. We look forward to providing additional information related to the project as we progress towards the multi-well drilling campaign planned for the end of the year.”
“The drilling campaign will convert some of the prospective resources into reserves or contingent resources and will also convert a significant number of the drilling leases into longer tenure production leases. Both of these outcomes will have a bearing on how we monetise this investment.”
Calima’s acreage is located approximately 170km northwest of the city of Fort St John and comprise approximately 112 sections of land. Calima is sharpening the drill bit ahead of a planned drilling campaign later this year.
The big question is can they replicate the stunning success of Saguaro on their southern boundary.