Calima Energy Ltd (ASX:CE1) (FRA:R1Y) has received preliminary findings from an in-depth industry study of three wells drilled in 2019 confirming that the liquids-rich Montney fairway extends further north than previously thought.
The company currently operates more than 60,000 acres of drilling rights, the Calima Lands, in British Columbia, Canada.
Calima previously reported on maiden oil and gas flow rates of its 2019 winter Montney drilling campaign confirming increased condensate-gas-ratio on Calima-2, which led to an overall significant increase in reserves on the Calima Lands.
Canadian Discovery Ltd (CDL) has now completed a detailed study of the data collected from the three wells, including the 230 metres of core from Calima-1.
CDL is a leading expert in the Western Canadian basin with extensive proprietary technologies and databases.
High productivity of Upper and Middle Montney
Core data from Calima-1 indicates a resource potential in the Lower Montney that is underdeveloped in the basin and currently not incorporated in the company’s resource statement, delivering future upside.
Calima Canada president Micheal Dobovich said: “Calima is very pleased with the preliminary results provided by CDL’s technical evaluation confirming the high productivity of the Upper and Middle Montney and provides us a glimpse of the substantial potential of the Lower Montney which currently is not included within our resource statement.
“We look forward to providing further details once the full study is completed.”
CDL technical paper conclusions
“Pressure and flow test results from the Upper Middle Montney in Calima-2 and the Upper Montney in Calima-3, in addition to core analysis from Calima-1, indicate the presence of high productivity Montney zones at the northern edge of the current Montney fairway.
“Regional mapping and the production history of analogue wells at Laprise and Birley Creek also point to Calima’s wells becoming strong performers.
“While not tested, lower Montney intervals, based on core and log analysis from Calima-1, represent a potential resource that to date has been under-developed elsewhere in northeast BC.”
The paper also states: “As of November 2020, Calima holds approximately 26,000 hectares (61,735 acres) of Montney rights, over half of which have been converted to leases with expiry dates no earlier than June 2029.
“Combining this land base with the company’s recent acquisition of infrastructure at Tommy Lakes, and receipt of approval to construct a pipeline from its recent wells to that infrastructure, Calima is well-positioned to build significantly on its current Montney development.”