Calima Energy boosts oil production in Canada

Tue 10 Jan 23, 11:34am (AEST)
A road extends into the mid-horizon before mountain ranges in Alberta, Canada
Source: Unsplash

Key Points

  • Calima Energy’s most recently completed wells at Canada-based Brooks play boost production by 4,500 barrels of oil and condensate
  • Company now drilling two more wells through Q1 2023
  • Management sees even higher still production rates met by end of Q2

Calima Energy (ASX:CE1) on Tuesday announced a 4,500 barrels of oil equivalent per day (boe/d) increase to its daily production from the Brooks oil and gas play in Alberta, Canada. 

Barrels of oil equivalent is a metric used when a company produces more than just oil. Most typically, “boe” is used in contexts where barrels of oil are sold alongside natural gas condensates, which occur in many oil wells. 

The 4,500boe/d increase is a result of the Pisces #6 & #7 wells being completed and tied into the Brooks production circuit as of late December. 

Both wells are currently returning frac fluid to surface, a normal consequence of post-completion hydraulic fracturing. There is potential for the flows of hydrocarbons from both wells to further increase, but this remains to be seen. 

Frac fluid cannot be “forced” out of a well by pumping or other means, given that such an activity risks disrupting the downhole pressure dynamics of the well. In the worst case, this can lead to a stranded asset (read: millions of dollars wasted.) 

More wells coming up 

“After a drilling break in December to get Pisces 6 and 7 completed and tied in, we have brought the rig back to drill another two Pisces wells,” Calima chief Jordan Kevol said. 

“These wells are being drilled into a known Glauconitic pool which was proved up in 2020. We are excited to be drilling these two follow-up wells that will both have a more intensive fracture completion compared to the 2020 well in the same pool.”

Glauconite is a mineral which is a common feature in parts of Alberta. By chance, the Brooks project straddles a glauconite system that contains hydrocarbon deposits. 

“The drilling of Pisces 8 and 9 will further contribute to production rates in late Q1 and into Q2.”

Plans ahead 

Pisces #8 & #9 will be drilled throughout Q1 of 2023. 

Pisces #8 was spudded (read: perforated for the first time) late last week. 

The same drill pad will be used to complete both horizontal wells, saving costs and time, all things going to plan.

The company expects each well to take 10 days to complete with a 2,750m long horizontal run each. 

Geological particulars will determine whether or not, of course, these wells extend to their planned total length. 

Both #8 and #9 wells follow up on a well finished in 2020 which has since produced 132,000boe. 


Calima Energy has a market cap of $85.6m. 

Its one year returns are down -36.3%. 

Year to date performance in the first 10 days of January sees the company’s returns up 7.69%. 

Calima held $9.9m in cash at the end of the September quarter. 

It spent $6.7m in the same period on investing activities. 

A look at Calima Energy's one year charts
A look at Calima Energy's one year charts


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Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication.

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