A three well drilling campaign in Canada’s most active oil and gas province, the Montney in British Colombia, has concluded with ASX-listed oiler Calima Energy flying high on early success.
The maiden drilling campaign has proven exceptionally fruitful with both wireline log data and core samples demonstrating Calima’s geology is a valid analogue to other prolific Montney producers.
The company will now look to conduct production testing on two wells, which is tipped to last approximately 25 days and commence in early March.
The overall time taken to conduct the production test is determined by the time taken to produce 105 million cubic feet of gas and associated liquids – Calima’s total volume for its drilling permits.
The company will have its fingers crossed for a rapid result, with production testing used as a measuring stick for the efficiency of its newly minted wells.
Calima will have a broad audience as it continues to prove its thesis of further liquids-rich gas potential at the northern tip of the Montney, where the Company holds 72,000 acres of drilling rights.
Commenting on the conclusion of the drilling campaign, Calima managing director Alan Stein said:
The whole team has worked together to the highest professional standards to deliver an outstanding result and we would like to record our appreciation of their efforts.
“Some of the adjacent operators have also been generous with their advice and their contribution is similarly appreciated.
“We are excited by the data generated to date which has confirmed our views on the prospectivity of the area and we look forward to reporting the results of production testing over the next few weeks,” he said.
While the drilling activity in the Montney is attracting attention, the increased interest is a familiar scene for Mr Stein, who has previously made headlines as the managing director of Ophir Energy.
Ophir emerged from a startup to become the biggest ever exploration and production company IPO in London at the time of listing in 2011.