Image source: Calima Energy

• Calima is proposing to drill three wells in its British Columbia acreage later this year.
• Two of the wells will have 2,500 m horizontal sections which will be fracture stimulated before being put on an extended production test.
• The Company has reviewed completion techniques employed on over 500 wells within a 75 km radius of its first drilling location to ensure its well designs are optimized to match the performance improvements of other Operators in British Columbia.

Calima Energy Limited owns 72,000 acres of drilling rights in British Columbia prospective for the Montney Formation. The Company is planning to drill its first wells later this year. Commencing in December it is proposed to drill one vertical well and then two horizontal wells.

The vertical well will provide stratigraphic calibration and will be cored to recover samples of rock for measurement and analysis. The horizontal wells will be stimulated with hydraulic fractures and put on an extended production test over a period of 4-6 weeks. This is a well-established technique in the Montney with more than 5,000 horizontal wells having been drilled to date. It is worth noting that less than 2% of these wells are non-productive which is indicative of the pervasive hydrocarbon saturation within the Montney Formation.

Calima has completed a review of more than 500 multi-stage drilling completions in the Montney Formation that lie within a 75km radius of its first drilling location within the Calima Lands in British Columbia. The study undertaken for Calima by Canadian Discovery Limited (“CDL”), one of Canada’s leading independent oil and gas services companies, compares the effectiveness of the various kinds of completion techniques used in northern British Columbia as well as the evolution of well performance over time as completion techniques have evolved. The purpose of the study is to ensure that the completion techniques being adopted by Calima take full advantage of the increases in well performance being achieved by other Operators in the region.

Calima’s Managing Director, Alan Stein, commented,
“The extensive review conducted by Canadian Discovery gives us confidence that our drilling plans are aligned with the best practice of other successful operators in northern British Columbia”.