Calima Energy advances its liquids-rich Montney play


SYDNEY -- Calima Energy Limited continues to advance the liquids rich Montney play and has licensed a high-quality 3D seismic database covering a significant portion of Calima’s landholding, in addition to acquiring a regional well log database that includes more than 60 Montney penetrations within 35 km of the Calima Lands. The seismic and well database will be used in the subsurface evaluation and well planning, with a view to commencing drilling activities in 2018. The company is pleased to provide the following regional update and briefing.

The Calima Lands, in the Caribou area of British Columbia, cover an area of 51,455 acres that has quietly been built up over the past three years through established open land sale auctions in British Columbia. The Company continues to participate in regular Government land sale auctions with a view to increasing its position to 65-70,000 acres by year-end, providing a sound foothold in the basin and providing significant scale in a Tier 1 basin.

Based on a proprietary mapping methodology developed using more than 1,400 wells across the Montney play, including well penetrations of the Montney in, and immediately adjacent to, the Calima Lands, the Company expects the area to be liquids-rich and comparable to the acreage being operated by Saguaro Resources Limited (Saguaro) immediately to the southeast .

Saguaro has invested more than C$400 million in drilling and infrastructure. As of August 2017, Saguaro has drilled 46 wells with current production (from 36 wells) averaging c. 10,500 boed (peak daily production in July 2017 exceeded 15,500 boed). Conden sate and Natural Gas Liquids (NGLs) account for ~25% of Saguaro’s production volume but deliver almost 50% of revenue. Saguaro reported estimated ultimate recoveries (EURs) of 6 to 8 Bcf per well, which gives an IRR of 40 to 83% respectively, at current prices.

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