Calima Energy Ltd will continue an extensive drilling program on the Brooks assets in Alberta, Canada

Calima Energy Ltd (ASX: CE1) is reporting a planned four-well horizontal drilling program for its Brooks asset in Alberta, Canada, with two wells at Gemini and two at Pisces starting next month.

This program was originally scheduled for the September term, but was brought forward to June due to the early availability of a preferred platform.

June will be the start of a busy period for the oil and gas producer, developer and explorer with the completion and tie-in of the Leo #4 well, which was in the first quarter of 2022, also beginning.

Calima is also planning another drill program for the December 2022 quarter which will nicely encompass the Brooks and Thorsby projects.

Drilling activities are designed to maximize free cash flow while taking advantage of current high commodity prices and maintaining and developing Proven Developed Production Reserves (PDP).

“Optimise cash flow”

Calima CEO and President Jordan Kevol said, “The current drilling program is designed to grow and sustain the company’s production base and maximize cash flow, providing financial flexibility to deliver higher shareholder returns. late this year.

“With continued strength in commodity prices and a successful Brooks drilling program, Calima will have the flexibility to schedule additional drilling in the fourth quarter of 2022, following a return to shareholders.

“We are excited to resume drilling in our core Brooks area following the spring traffic bans.”

Gemini Brooks Program

Gemini #8 will be a follow-up to the very successful Gemini #5 vertical well drilled in the March quarter.

This well will be drilled from the same pad as Gemini #5 and will be a low cost lease connection.

Notably, the well will be connected to the recently completed Brooks Pipeline with fluids going directly to Battery 2-29.

Gemini #9 follows on from Gemini #3. It will be drilled from the same base and will also be a rental link.

Gemini #3 was placed into production in July 2021 at a total drill, complete, equip and tie (DCE&T) cost of CA$924,000 and reported a net profit of CA$3.5 million at the end of March 2022, making it one of the best performing Sunburst wells in the central Brooks region.

Brooks Fish Program

Following the highly successful three-well Pisces program in January 2022, Calima will drill two additional Pisces wells.

Pisces #4 follows one of the best performing glauconite wells drilled by Blackspur (15 to 36 wells).

Pisces #5 follows a well, drilled by Blackspur in 2014 (well 04-05), well 04-05 was a first generation glauconite fracture stimulated well with an IP30 of 213 bopd and produced 85,000 barrels of oil for Date.

Budgeting

Calima’s program is focused on providing shareholders with exposure to high commodity prices through the drilling of its high-profit oil plays, as well as exploiting the company’s recent footprint upgrades. infrastructure at Brooks.

The company budget was designed to:

  • Maintain average daily production levels of 4,100 to 4,400 boe;
  • Maximize free cash flow while ensuring a healthy balance sheet and providing unhedged exposure to high energy prices on future production;
  • Provide funding for capital repayment/repurchase during the period o Continue to use the new pipeline and recent infrastructure/facility upgrades at Brooks;
  • Better understand the rise in production and resources in the high-impact undeveloped area of ​​Holborn Alberta, near Thorsby.

Provisional plan

With the successful completion and subsequent production of Leo #4, Calima will be able to reserve new reserves in this area and plan future follow-up drilling.

Production of Lion #4 is scheduled for the September quarter of 2022

Kevol adds, “These four new wells build on previous successful drilling on our acreage.

“Three of the wells will use our recent expansion of our infrastructure in the Brooks area.

“We were able to contract a preferred drilling rig that we have previous experience with in the area.

“Due to the lease-related nature of these wells, we anticipate rapid drilling within the commissioning timeline for all four wells.

“Additionally, the completion and upcoming testing of the Leo #4 well at Holborn has the potential to impact the company with respect to additional reserve reservations and follow-up drill locations.”