• The four wells drilled on the Sunburst formation have achieved their initial 30-day production rate.
• The wells are producing at an average rate of 176 boe/d with 75% oil.
• Calima Energy has commenced licensing process for more wells in the Brooks area, targeting the Sunburst and Glauconitic formations.

Canada-focused oil & gas company Calima Energy Limited (ASX:CE1) is advancing well, with all four Gemini wells drilled on the Sunburst formation tied-in to the production line. Significantly, the wells have achieved their initial 30-day production rate (IP30) and are producing at an average rate of 176 boe/d (75% oil) per well.

In total, the four wells are currently producing 650 boe/d (89% oil).

Calima Energy buoyed by reserve evaluation report for Blackspur assets  

In the last quarter, Calima had embarked on a four-well drilling campaign targeting the Sunburst formation on its Brooks asset. All wells were horizontally drilled, and the horizontal section was left open, eliminating the need for hydraulic fracturing for completion.

The drilling program involved a total cost of C$4.8 million, which translates to an average cost of C$1.2 million for each well.

The drilling of wells took 6.9 days on average while it took 25 days to bring them into production stream. With WTI crude oil price of US$70, the Sunburst wells will take nearly five months for their payout period.

Calima’s break-even cost on the Sunburst wells stood at US$30.82/bbl.

KeyFacts Energy: Calima Energy Canada Onshore country profile