HIGHLIGHTS

• The 3 well Leo drilling program has commenced in the Sparky Formation, Thorsby area of Alberta, Canada
• The Leo #1 is presently at ~2,000m measured depth.  Intermediate casing has been set and the well is drilling ahead within the Sparky Formation. The well is expected to complete drilling this weekend, following which Leo #2 will commence drilling from the same pad
• Leo’s 1, 2 and 3 wells (3rd Generation) Sparky Wells have been optimised and will average ~3,800m MD (400m longer) and 53 fracture stages averaging 1.0 tonnes of sand per meter over the horizontal length
• IP90 production rates per well are ~274-460 bbl/d with NPV10 of C$6.5-$8.8 million based on EUR’s of 352,000 – 462,000 boe with 80% oil
• Wells average approximately 10 days each to drill and will be subsequently fracture stimulated as part of the completion process. All wells are adjacent to Calima’s oil processing facility. This pad contains two of the best performing Thorsby Sparky wells
• These wells are considered development in nature with low geological risk
• An update of the 4 Gemini IP30 well rates will be provided at the end of August 2021

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Jordan Kevol, Calima CEO, states that:

“We are very excited to be back drilling in the Thorsby area.  The last well drilled in this area was in January 2019.  We are drilling near some of our best wells to date and planning to implement a larger frac intensity relative to the previous wells with improved economics expected.  The 3 wells have minimal on-lease tie-in’s and will flow into our existing oil processing facilities that have ample room for the hydrocarbons.  We have a lot of running room in the Thorsby Sparky play, and these wells are expected to be very impactful to our bottom line with IP90’s of up to 460 barrels of oil per day.”

Download the announcement here.

About Calima Energy (ASX: CE1)

Calima Energy Limited is a publicly listed mid-tier oil and gas producer in Western Canada. They have three major operations within British Columbia and Alberta, namely Montney, Brooks and Thorsby. Calima is focused on high growth exploration and production and has assembled an exciting and growing inventory of drilling locations across a sizeable land base.

Calima is continuing development drilling to achieve 3,000 boe/d on the Brooks and Thorsby assets and is commencing a 24 well development drill program over the next 18 months. By Year End 2022, Calima plans on growing to 5,500 boe/d.

Calima has invested in regenerative, proprietary H2S removal technology and has positioned itself with the ability to lower its CO2 emission rates to offer a number of positive economic and environmental benefits.

Calima’s assets are low cost and a break even cost of ~US$26/bbl WTI including $10bbl operating and transport costs.

Overall, Calima’s current assets and vision position the company well to continue to grow and take advantage of the improving oil prices.

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