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Thorsby Drilling Update
- Sparky Formation - Leo #2 to be Spudded 

HIGHLIGHTS

  • The second well in the Leo Drilling Campaign at Thorsby, Alberta is underway with the Leo #2 to be spudded on 27 August 2021
  • The Leo #1 was drilled horizontal 3,800m and well logs indicate the well is within expected reservoir quality with oil and gas shows as prognosed – type curve production predicted
  • The Leo Sparky Wells (3rd Generation) have been optimised with respect to horizontal length, and planned fracture stimulation intensity. They will average ~3,800m MD (400m longer than previous generation) and ~50 fracture stages averaging 1.0 tonnes of sand per meter over the horizontal length
  • IP90 production rates per well are modelled at ~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 one of Calima’s oil processing facilities. This particular well pad already contains two of the historical best performing Thorsby Sparky wells
  • These wells are considered development in nature with low geological risk
 
Jordan Kevol, Calima CEO, states that:
 
“We are very excited to be back drilling in Thorsby. 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 higher frac intensity relative to the previous wells with improved economics expected. The 3 wells have minimal on-lease tiein’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

RESEARCH REPORTS 

CLICK HERE TO BE REDIRECTED TO HISTORICAL REPORTS ON COMPANY WEBSITE 
RESEARCH REPORT 16 August 2021
CORPORATE CONNECT
INITIATING COVERAGE
BLACKSPUR ACQUISITION IS TRANSOFORMATIVE

Summary


We initiate coverage on Calima Energy (“Calima” or the “Company”) on a free cash flow (“FCF”) basis with a value of AUD0.025/share. Calima is an Australian listed exploration and production (E&P) company, and a Canadian oil and gas pure play. Its assets include a large-scale liquids rich gas play in the Montney fairway in British Columbia, a well-established oil and gas producing region with a supportive energy production policy.

On April 30, 2021, Calima completed the acquisition of Blackspur Oil (“Blackspur’). Blackspur was caught out in a poor oil environment while laden with a heavy debt burden and Calima was able to capitalise on the opportunity, acquiring the target at a deep discount of C$61.5m, including C$40.0m in debt. This is against over C$200m invested by Blackspur since inception in 2012. The acquisition is earnings accretive and has raised Calima’s status to the realm of a mid-tier, ASX-listed oil producer.

Our one-year price target of AUD0.025/share implies an upside of over 2.5x
Download the Corporate Connect Research Initiating Research Report Here [16 August] PT $0.025
Download the Hannam & Partners Research Report [5 August] Here
Download the Hannam & Partners Research Report [1 August] Here
Download the Auctus Advisors Research Report [1 August] Here
SPECIAL REPORT: Top Reasons to Consider Oil Related Equitities [Goehring & Rozencwajg]

MEDIA


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Calima Energy kicks off oil drilling program in the Sparky Formation in western Canada


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Calima shifts gear in Alberta oil production drive

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Calima completes drilling of Gemini #4 well with production expected by end of July

Calima Energy progresses Sunburst drilling in Canada with aim to achieve year-end production guidance of 4,500 boep/d
 
Australian Financial Review EDITORIAL - click here to read
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Our mailing address is:
Suite 4, 246-250 Railway Parade
West Leederville, Perth WA 6007
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