Commencement of 2 Sunburst Horizontal Wells

Source: 1/18/2022, Location: Not categorized

Calima Energy Limited announces the continuation of its 2022 oil and gas drilling campaign in the Brooks area, by the addition of two Sunburst horizontal wells.

With increased commodity prices (US$84/bbl WTI, ~US$69/bbl WCS, and ~C$4/GJ) and short payback periods (~6 months), the Company has added two additional conventional horizontal wells targeting the Sunburst Formation within the core Brooks Area in the Bantry Field, Gemini #6 and #7.

The Gemini #5 vertical well (recently drilled, ~1.4km north of Gemini #6) has proven the presence of Sunburst sand within a previously undeveloped portion of the field which will provide further drilling locations for future programs and assist in reserve growth.

The hedging program will continue to lock in 50% net production at current strip pricing to manage capital exposure, ensuring a strong balance sheet throughout 2022. This hedging program ensures well program costs are recovered whilst providing shareholders exposure to higher commodity prices.

• Spud of 2nd Sunburst well, Gemini #6 (100%WI), commenced 15 January 2022. The well is planned to be drilled to a measured depth of ~2,300 meters and is expected to take 7 days to drill
• Gemini #7, will commence after Gemini #6
• Sunburst wells do not require fracture stimulation as they are true conventional wells. The wells will be flow tested in the first quarter of 2022. Both Gemini #6 & #7 will be subsequently tied into the 2-29 oil battery facility in Q1 2022
• Sunburst horizontal wells are anticipated to have an EUR of over 200 Mboe’s with IP90’s of ~140 bbl/d of oil, not including associated gas production
• Capital program funded from operational cash flows and the Company’s C$27.0 million credit facility

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

Gemini #6 and #7 Sunburst Wells (100% WI)
Both wells (Gemini #6 & #7) are classified as appraisal wells, as they will be drilled into existing Sunburst oil pools, which have been delineated by existing vertical Sunburst wells, and 3D seismic.

The new wells will utilize the existing Calima Bantry oil processing plant 2-29. The Sunburst wells being drilled are conventional horizontal wells, meaning they require no stimulation such as hydraulic fracturing. The true vertical depth (TVD) of the target Sunburst zone is ~1,000m and the typical lateral length of the horizontal section for a Sunburst is 600-1,000 meters. The combination of the shallow target depth, relatively short horizontal length, and lack of need for stimulation, results in an all-in cost estimate for each well to be ~C$1.0mm assuming a single horizontal leg and on lease tie-in.

Well economics are summarized below:

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 utilized to connect a number of new wells, including the recently drilled, but not yet completed Pisces #3 well.

30 and 90 day initial production rates
It is anticipated that on stream production will occur by the end of the first quarter for Gemini #6 & #7 wells. Once they are on-stream, and the entirety of the load fluid has been recovered, the IP30 and IP90 rate calculations will begin.

Brooks Area
Calima has an established core position of land (~83 net sections) and significant infrastructure that provides a foundation for growth and expansion with year-round access. Blackspur/Calima has drilled 62 Brooks wells since 2014.

The majority of the Brooks production is from the Sunburst and Glauconitic Formations. Brooks reservoirs contain a low quantity of CO2 in reservoir at ~2%, and multi-well pad drilling reduces the Company’s environmental footprint. Future growth from the Brooks asset will come from the ~140 net locations that were previously identified. These locations include the ~30 net booked PUDs. Additional reserves are expected to be realised through implementation of future enhanced oil recovery projects. This release has been approved by the Board.

Cuba >>  5/23/2022 - Melbana Energy Limited is pleased to provide this update on its two well exploration drilling program in its Block 9 contract area, onshore Cuba (Melb...
Norway >>  5/23/2022 - The Norwegian Petroleum Directorate (NPD) has granted Aker BP ASA drilling permit for well 6507/3-15 and well 6507/3-16, cf. Section 13 of the Resourc...

Norway >>  5/23/2022 - The Norwegian Petroleum Directorate (NPD) has granted Equinor Energy AS drilling permit for well 30/3-11 S, cf. Section 13 of the Resource Management ...
Canada >>  5/19/2022 - PetroTal Corp. is pleased to announce that Q1 2022 results will be released on May 26, 2022, along with an extended investor webcast. Additionally, th...

Egypt >>  5/18/2022 - SDX Energy Plc (SDX) is pleased to announce the spudding of the MSD-24 infill development well on the Meseda field. This well is the fourth in a fully...
Australia >>  5/16/2022 - Highlights
- Drilling of Glenaras 28 complete
- Well encountered 27m of gassy coals
- Steps underway to mitigate impact of further uns...

Gulf Oil and Gas
Copyright © 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.