Calima Energy today announced the commencement of its initial 2022 oil and gas drilling campaign in the Brooks area, Western Canada.

The January 2022 program comprises the multi-stage fracture stimulation of 2 wells at Brooks (Pisces #1 & #2), and the drilling of an additional Glauconitic well at Brooks (Pisces #3).

Current commodity prices are ~US$77/bbl WTI, ~US$64/bbl WCS, and ~C$4/GJ which continue to provide excellent returns on existing and future production. The Company will continue its hedging program to lock in 50% net production at current strip pricing to manage capital exposure and ensuring a strong balance sheet into the new year. This hedging program ensures well program costs are recovered whilst providing shareholders exposure to higher commodity prices.

Highlights: 

• Pisces #3 (100%WI), the 3rd Glauconitic well, spudded 2 January 2022. The well will be drilled to a measured depth of ~2,600 meters and is expected to take 10 days to drill
• Pisces #1 & #2 horizontal wells (drilled prior to Christmas) have commenced completion and fracture stimulation operations. Flow testing of both wells is expected to commence the last week of January.
• Glauconitic wells are anticipated to have an EUR of 170 – 400 Mboe’s
• IP90’s of 200 – 400 boe/d
• Following the multi-stage frac stimulation programs the wells will be tied-in to existing infrastructure and facilities.
• Capital program funded from operational cash flows and the Company’s credit facility

Jordan Kevol, CEO and President:
“The commencement of the January 2022 drilling campaign reflects a strong start to the year for the Company. Notwithstanding the extremely cold winter, the Company’s production has increased steadily thanks to our Leo 1, 2 and 3 program. The additional production from our 3 Pisces wells will provide a significant increase by the end of the first quarter in 2022.

The Company plans an active drilling program for 2022 and is currently reviewing its budget and operating schedule for 2022 ensuring strong capital management and while leveraging from higher energy prices. Further details will be shared over the coming month.”

KeyFacts Energy: Calima Energy Canada Onshore country profile