Fresh from completing its acquisitions of its farm-in partners TMK Montney and TSV Montney, emerging oil and gas company Calima Energy (ASX: CE1) is positioning itself for a drilling campaign in Canada’s hottest energy province later this year.
The company – which wholly-owns drilling rights to 72,000 acres in British Columbia, Canada – will be drilling three wells commencing in December 2018.
Calima plans to drill one vertical well and then two horizontal wells. The vertical well will provide stratigraphic calibration and will be cored to recover samples of rock for measurement and analysis.
The horizontal wells will have 2,500 metres horizontal sections which will be stimulated with hydraulic fractures and put on an extended production test over a period of 4-6 weeks.
This is a well-established technique in the Montney with more than 5,000 horizontal wells having been drilled to date.
The Company has reviewed completion techniques used on over 500 wells within a 75 km radius of its first drilling location in the Montney Formation to ensure its well designs are optimized to match the performance improvements of other operators in British Columbia.
The Montney is continuing to see ongoing significant and substantial investment. Over 350 horizontal Montney wells were drilled in the first quarter of this year and M&A valuations for early stage acreage have increased from an average of $2,500 per acre last year to $4,500 for the first half of this year.
Shares in Calima have climbed 0.1c to 5.9c in early afternoon trade.