Calima Energy ASX CE1 - Thorsby-Alberta
Thorsby
Source: Calima Energy
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  • Calima Energy (CE1) has updated the market on its end of year production for the three Leo wells in Canada
  • During mid-December, production levels exceeded 3800 barrels of oil equivalent (boe) per day, well on the way to achieving Calima’s goal of 4500 boe per day
  • This goal was expected to be achieved by the end of December, however, the company saw delays due to holidays, COVID-19 and bad weather
  • Calima is now expecting to achieve its goal in February
  • On the market today, Calima shares were unchanged at 21 cents

Calima Energy (CE1) has updated the market on its end of year production for the three Leo wells that commenced frac fluid flowback mid November.

During mid-December, production levels exceeded 3800 barrels of oil equivalent (boe) per day and were on the way to achieving Calima’s goal of 4500 boe per day by the end of December.

However, a number of events occurred that impacted the wells reaching peak production, which is now anticipated for February 2022.

Leo #3 encountered a downtime event requiring a well intervention which could not
be resolved until January 3 due to limited services between Christmas and New Year, increasing case numbers of the Omicron variant and extremely cold weather conditions.

“Despite the extreme cold, the three Leo wells at Thorsby continue to ‘clean up’ from their fracture stimulations,” the company explained.

It said that while the short term issues are frustrating, the wells continue to meet or exceed the company’s expectations.

“The company is confident the 3rd generation wells are going to exceed the 2nd generation Sparky wells production curves and cumulative production levels and we are confident that the Leo drilling program will deliver productivity and returns as modeled, albeit delayed,” Calima said.

On the market today, Calima shares closed unchanged at 21 cents.


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