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- Calima Energy (CE1) sees a 30 per cent increase in average daily production from its Canadian oil and gas operations over the 2021 calendar year compared to the previous 12 months
- The company says it produced 294,561 barrels of oil equivalent (boe) of oil and natural gas across the quarter, averaging 3,202 boe per day
- Its oil and natural gas sales for the three-month period totalled $19.8 million, resulting in Calima posting an adjusted EBITDA of about $9.4 million
- The quarterly report comes after the company executed an agreement with Pivotal Energy Partners for the financing and construction of a pipeline at its Brooks project area in Alberta
- CE1 shares down 12.5 per cent to 21 cents
Calima Energy (CE1) has delivered a 30 per cent increase in oil equivalent production from its Canadian oil and gas operations over the past calendar year compared to the previous 12 months.
The company produced 294,561 barrels of oil equivalent (boe) oil and gas for the December 2021 quarter, averaging 3,202 boe per day, which lifted its calendar year sales volume total to 779,570 boe and took its average daily sales volume rate to 3,182 boe per day, up 30 per cent on the previous year.
Calima’s oil and natural gas sales for the December quarter came in at $19.8 million for the December quarter and $47.7 million for the year, culminating in an adjusted EBITDA of about $9.4 million and $21.5 million, respectively.
The Calima board recently approved a $19 million capital program for the first half of this year for the development of its core Brooks area, including three Glauconitic wells, four Sunburst wells, one Sparky well and the new pipeline.
“We have started 2022 with a bang, having expedited our program by spudding two wells in December 2021, followed by five more in January 2022. The company is well on its way to estimated production targets of 4,000 to 5,000 barrels of oil equivalent per day this half-year,” CEO and President Jordan Kevol said.
For the six months ending 30 June 2022, the company said it was looking to achieve an average daily production target of 4,000 to 5,000 boe per day and adjusted EBITDA of C$28 million-$33 million (A$31 million-A$36 million) based on current commodity prices.
Calima said the fourth quarter average daily production rate of 3,202 boe was in line with average daily production for the year as preliminary volume contributions from the three Leo wells at Thorsby late in the quarter were offset by production shut-ins of existing wells.
The quarter saw Calima ramp up production from the three Leo wells. Compared to previous exit guidance of 4,500 boe per day, the company exited the fourth quarter at the trio of Leos with average December production of about 3,500 boe per day.
Early production contributions from the Leo wells were impeded by downhole operational challenges, which led to production delays and intermittent run-times on the wells.
Two of the three Leo wells experienced downhole pump complications that arose due to high initial flowback of load recoveries that included frac sand.
The company was still able to complete workover activities on the wells in December and early January, with all three wells back on stream by mid-January.
The quarterly report comes after Calima announced it had executed an agreement with Pivotal Energy Partners for the financing and construction of a pipeline at its Brooks project area in Alberta.
Calima said the new pipeline, which is expected to be completed by late March, will connect its oil battery in the north of the field to recently drilled wells in the south to provide egress for planned production growth.
CE1 shares ended the day’s trading session down 12.5 per cent at 21 cents.
