Calima back to strong oil production figures in Canada

Calima Energy has produced some positive production figures from its latest frac campaign for its three Leo wells that form part of its Thorsby project in Alberta, Canada. After a pre-Christmas hiccup, the company believes it is now back on target to reach its goal of 4,500 barrels of oil equivalent per day, or “boe/d” in February after a workover of the Leo 3 well.

The three Leo wells churned out some solid numbers, producing over 3800boe/d until a technical malfunction around Christmas on the Leo 3 well called for maintenance.

Prior to the remedial work, Calima said production levels exceeded 3,800 boe/d and was well on its way to achieving its goal of 4,500 boe/d by December 31st, however a number of events occurred which impacted the wells reaching peak production.

The company said Leo 3 developed a downhole sand issue on 23 December requiring a well intervention that could not be resolved until the 3 January.

Compounding the issue, there were limited services available between Christmas and New Year at a time when Alberta had an intense resurgence of COVID via the Omicron variant which has limited the availability of manpower.

Additionally, extremely cold weather conditions which saw the mercury drop to -45C meant rig and manpower mobilisation had been restricted until 3 January.

Calima reported that despite the extreme cold, the three Leo wells at Thorsby continue to “clean up” from their fracture stimulations. The Leo wells are the first third generation “Sparky” wells that boast technical improvements such as extended reach wellbores and more intensive fracture completions.

Whilst the company said the short-term operational issues were frustrating, the wells continued to meet or exceed expectations and it was confident the third generation wells were going to exceed production from its second generation Sparky wells, albeit with the delay.

The Leo 1 well is currently producing in excess of 400 boe/d of oil. Recovery of the proppant load, used to frac the well, is estimated to take 90 days. Once the load is fully recovered, the well is expected to result in peak production of 450-550 boe/d.

The Leo 2 well continues to clean up and is currently producing in excess of 420 boe/d. Load recovery is estimated to take 60 days. Once the load is fully recovered, the well is expected to have peak production of 450-550 boe/d.

A workover service rig arrived at the Leo 3 location on 3 January to perform a coiled tubing clean out of the frac sand that has entered the wellbore, causing the pump to fail.

Prior to the well going down, it was producing approximately 380 boe/d. Once the frac load is fully recovered, estimated at 120 days, the well is expected to produce around of 500-600 boe/d.

Calima said two of its three Leo wells have achieved excellent run times and production results, but the additional work to optimise Leo 3 was not unusual when drilling extended reach wells.

The singer Meatloaf famously suggested that two out of three ‘aint bad. Come February, Calima shareholders will be hoping the Leo wells will be achieving a three from three result. That will be worth singing about.

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