New well pushes Calima north in Canadian oil chase

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Matt BirneySponsored
Calima Energy is pushing northward, chasing more oil pay-zones in Canada.
Camera IconCalima Energy is pushing northward, chasing more oil pay-zones in Canada. Credit: File

Canadian-based oil producer Calima Energy is moving northwards at its Thorsby project, spudding the fourth of its high impact unconventional Leo oil wells as it chases the productive Sparky Formation in Alberta, Canada. Calima said it holds a significant land position in the North Thorsby area that contains some of the thickest Sparky formation oil columns in the region.

Some of the North Thorsby sections have been estimated to have 28 million barrels, or “mmbbl” of oil.

Nearologists will no doubt be hoping the Sparky formation intervals in Calima’s latest Leo well will be similar to those logged during recent drilling to the east of the company’s acreage that provide strong analogues.

There are no horizontal wells testing the intervals in Calima’s permits and if successfully drilled, Calima said the area provides the potential for significant locations and reserves growth in the Thorsby fairway over time.

The company plans to frac and tie-in the new well in mid to late 2022 depending on weather and logistics.

The commencement of the January 2022 drilling campaign reflects a strong start to the year for the Company with the drilling of Leo 4. North Thorsby is a new development area for the Company and Leo 4’s level of success will potentially open up additional reserves to book and subsequently develop.

Calima Energy CEO Jordan Kevol

Calima said the wells will be funded from operational cash flows and a debt facility from the National Bank.

Having drilled 14 wells into the Sparky formation, Calima has been pushing the technical envelope. Leo 4 is referred to as a third generation Sparky well that has longer lateral lengths and more intensive fracture stimulation compared to second generation Sparky wells drilled in 2018-2019.

The first quarter of this year is shaping up as an exciting one for Calima, with frac results expected to start coming in. If Leo 4 does prove the viability of the ground to the north, Calima will have a new playground under its feet for 2022.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au

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