Today, Calima Energy Ltd announced it has begun a three-well horizontal drilling campaign targeting the Sunburst Formation at its core Brooks area in Alberta, Canada. Accordingly, the Gemini 1 well was spudded on Monday, May 31, 2021.
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Indeed, each well will take between seven to ten days to drill. Moreover, they will need a further 20-35 days to complete and tie into existing infrastructure and facilities. Moreover, the new wells will flow into existing Blackspur oil facilities. Accordingly, the company is targeting IP30 production rates on the three wells in August 2021.
More about the Gemini wells
Notably, the Brooks 2P (Proved & Probable) reserves a total of 11.62 million barrels of oil equivalent. Besides, it has year-round access and 147 new well locations, and 48 wells drilled to date.
In this regard, Calima CEO and president Jordan Kevol commented: “I am pleased to advise that a multi-well drilling campaign targeting the Sunburst Formation in the Brooks area has commenced.
Moreover, “Calima has committed to drilling three conventional horizontal wells with the program beginning today. Based on our extensive drilling experience in the area, we are confident these three development wells will come in on budget and produce at or above the well-type curves.
Calima to drill on time
Similarly, Kevol stressed that the wells have low geological risk and short (typically on-lease) tie-ins. Therefore, Calima’s drill on-stream time will be extremely fast at 30-45 days.
Worth noting, the company expects to decide on the additional Sunburst wells in early June.
Indeed, the capital program is funded from operational cashflows and the National Bank debt facility. Accordingly, Calima has a total of C$2.7 million net for the three Sunburst wells.
Finally, according to the Company, the combination of the shallow target depth, relatively short horizontal length, lack of need for stimulation, and short tie-in result in an all-in cost estimate for each well to be C$1 million.
