Canada-focused oil and gas producer Calima Energy has extended drilling into the oil-rich Sunburst Formation at its Brooks project in Alberta. The company has added a fourth development well to its current three-well schedule as it looks to ramp up oil production from its Blackspur oil facilities. A fifth well may also be on the cards to capitalise on strong oil prices.
Calima is looking to bump up production to average 3,700 barrels of oil-equivalent per day from May to the end of December this year, up from an average 2,900bpd reported for May.
The first well of the campaign, Gemini 1, was spudded late last month.
The second well about 1km away, Gemini 2, is now complete with management reporting excellent oil and gas showings in the target reservoir. The well is forecast to produce 200bpd with an 80 per cent oil component. Calima’s drilling cost came in at C$675,000, some C$100,000 below budget.
Th rig has relocated back to Gemini 1. Calima is looking to boost well productivity by drilling a second horizontal leg out of the Gemini 1 intermediate casing. The work will be completed in about three days at an estimated cost of C$350,000.
The Gemini 3 and Gemini 4 wells are due to follow with both to be drilled on the same multi-well pad to allow Calima to keep drilling costs down.
Upon completion the two wells will tap into the Blackspur oil processing facility located on the same section as the well-pad.
I am pleased with the solid progress of the Gemini drilling campaign and happy we are able to efficiently optimise the Gemini 1 well whilst the rig is close by. Calima has committed to drilling an additional well in the campaign and continues to review adding one more Sunburst well. With the oil price above $70 WTI the company is very enthusiastic about completing our top-tier Sunburst program.
Calima is pondering a fifth well as the price of oil continues to trade at stellar levels. WTI crude has surged to more than $US70 per barrel after starting the calendar year below US$50/bbl.
A fifth well is slated for early July.
The target zone for the wells is reportedly about 1,000m true vertical depth with the average lateral span of horizontal sections put at 775m.
Current proved and probable reserves at Brooks total 11.62 million barrels of oil-equivalent from 48 wells drilled to date.
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