Calima Energy today provides an update on year end 2021 production and the status of the 3 Leo wells that commenced frac fluid flowback mid November.

During the 3rd week of December, production levels exceeded 3,800 boe/d and was well on its way to achieving our goal of 4,500 boe/d by December 31st, however a number of events occurred which impacted the wells reaching peak production; which is now anticipated for February 2022.

On December 23, Leo #3 encountered a downtime event requiring a well intervention which could not be resolved until 3rd January 2022 due to: 

• limited services between Christmas and New Year;
• the Province of Alberta has had an intense resurgence of COVID via the Omicron variant which has limited the availability of manpower; and
• extremely cold (-45 Celsius) weather conditions, rig and manpower mobilization had been restricted until 3 January 2022.

Despite the extreme cold, the three Leo wells at Thorsby continue to “clean up” from their fracture stimulations. The Leo wells are the first 3rd Generation Sparky wells with extended reach wellbores and more intensive fracture completions.

To ensure the optimum production for the life of the wells we continuously monitor well productivity, water cut, GOR (gas/oil ratio) and solids production in order to ensure the optimal surface and bottom hole pumping system has been selected to match the well characteristics so that the wells deliver their maximum economic returns rather than short term flow rates. Two of the three wells have achieved excellent run times and production results, but the 3rd well requires additional work to optimize, which is not unusual when drilling extended wells.

While the shor.t term operational issues are frustrating; compounded by holidays, COVID and extremely cold winter weather, the wells continue to meet or exceed expectations and 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. 

KeyFacts Energy: Calima Energy Canada Onshore country profile