Calima Energy’s (ASX: CE1) much anticipated well drilling campaign in Canada’s world-class Montney oil and gas play is living up to expectations with the flow rate from production testing from its Calima-2 well outperforming against other wells in the region.
The company said the maximum flow rate achieved from the Calima-2 well during the clean-up phase of the production test was 10.2 mmcf/d with the ratio of liquids to gas improving as the well cleans up.
Based on the latest production numbers collected immediately prior to the installation of production tubing, the condensate to gas ratio (CGR) had climbed to 17.6 bbl/mmcf. Assuming typical plant recoveries for Montney liquids rich gas this would equate to a final CGR of 35-38 bbl/mmcf.
Based on other results in the area the CGR would be expected to improve once the wells are brought on long-term production and the gas production rate is optimised. Comparisons with nearby wells suggests that Calima-2 should match or exceed the liquids rates from adjacent areas.
We have some strong results coming out of Calima-2 which firms up our belief that we have opened up a new extension to the liquids-rich Montney play in British Columbia,” Calima’s Managing Director Alan Stein said.
“The team in Canada are doing an outstanding job to collect all the data we need in a race against time ahead of the end of winter.
“In common with most new areas across the Montney there is a window of opportunity to operate while the ground is frozen.
“Now that we have such positive results building all-weather access can be planned for the future. In the meantime, we are successfully gathering all the data we need to determine exactly how we can expect wells in this area to perform. We can also provide these data to our reserve auditors as the basis of an updated report”.
The Company has retained one of Calgary’s leading oil and gas consultancies, GLJ Petroleum Consultants, to analyse the test results and provide commentary on the data being generated.
Further details will be released as the data becomes available over the next 14 days, however some early data provided by GLJ demonstrates that Calima-2 has delivered initial performance in the upper quartile of the peer group.
GLJ Petroleum Consultants Director of Analytics Michael Morgan said in reviewing the test results, it was likely the Calima-2 well was going to meet its primary objective in matching or exceeding the performance of adjacent wells.
“Gas and light oil or condensate flow rates compare very favourably with the peer group at this early stage of testing,” he said.
“The condensate recovery rates are typical for wells in the liquids rich zone of the Montney and the liquid chromatography results are also typical for condensates recovered from wells adjacent to the Calima Lands”.
The Company cautions that the information in this release relates to initial flow rates which may not necessarily be indicative of the results which will be obtained upon the conclusion of the full testing programme or from longer term production.
Calima will update the market once stabilised flow rates have been established.