Calima’s Thorsby project, located north of Brooks. Source: Calima Energy
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Calima Energy (CE1) adds two more conventional horizontal wells targeting the Sunburst Formation within the Brooks area in Canada
  • The two wells, Gemini #6 and Gemini #7, have been added due to the favourable commodity prices and the short payback period
  • Both wells are classified as appraisal wells, as they will be drilled into existing Sunburst oil pools
  • These new Gemini wells are anticipated to be production tested in the first quarter of 2022
  • At market close for the day, Calima was up 2.13 per cent and is trading at 24 cents per share

Calima Energy (CE1) has added two more conventional horizontal wells targeting the Sunburst Formation within the Brooks area in Canada.

The company has added two wells, Gemini #6 and Gemini #7, due to the favourable commodity prices and the short payback period.

Commodity prices have risen to US$84 (A$116) per barrel of crude West Texas Intermediate oil, around US$69 (A$95) per barrel of crude Western Canadian Select oil, and about C$4 (A$4.40) per gigajoule, with payback periods dropping to less than six months.

Both wells are classified as appraisal wells, as they will be drilled into existing Sunburst oil pools, which have been set out by existing vertical Sunburst wells and 3D seismic.

The Sunburst wells which are being drilled are conventional horizontal wells, meaning they require no stimulation such as hydraulic fracturing. The true vertical depth of the target Sunburst zone is around 1000 metres.

“We are happy to be drilling additional Sunburst horizontal locations in the Bantry Field,” CEO and President Jordan Kevol said.

“Historically, our Sunburst type curve represents some of the best single well economics in our inventory. These wells are quick to drill and complete without requiring any fracture stimulation.”

These new Gemini wells are anticipated to be production tested in the first quarter of 2022 in conjunction with a pipeline project that will be used to connect a number of new wells, such as the recently drilled but not yet completed Pisces #3 well.

Recently, Calima reported that the Gemini #5 well reached its total depth.

At market close for the day, Calima was up 2.13 per cent and is trading at 24 cents per share.

CE1 by the numbers
More From The Market Herald

" Wiseway Group (ASX:WWG) launches $4m entitlement offer

Wiseway Group (ASX:WWG) has launched a four to 25 pro-rata non-renounceable entitlement offer to raise up…
Pursuit Minerals (ASX:PUR) - Managing Director, Bob Affleck

" Pursuit Minerals (ASX:PUR) sells Scandinavian projects for $3m

Pursuit Minerals (ASX:PUR) has settled the sale of its nickel and vanadium projects in Norway, Sweden…
Payright (ASX:PYR) - Joint CEOs, Piers Redward (left) and Myles Redward (right)

" Payright (ASX:PYR) settles “transformational” funding package to pursue growth

Payright (ASX:PYR) completes its settlement of funding package, comprising a $125 million warehouse facility led by…
X2M Connect (ASX:X2M) - Chief Operating Officer, Keith Jelley

" X2M Connect (ASX:X2M) wins three contracts in South Korea

X2M Connect (ASX:X2M) has won three new contracts in South Korea for remote water monitoring and…