AUSTRALIAN junior Calima Energy Limited (ASX: CE1) has achieved is first production with the successful recommencement of oil flow from the Paradise well in Canada.
Calima Energy acquired a 50% interest in the Paradise well via the acquisition of TSV Montney Limited (TSVM) and subsequently and elected to acquire the remaining interest via a payment of C$130,000 after a desk top study confirmed its viability.
The well, which is located 180 km to the southeast of the company’s extensive Montney interests in northeast British Columbia, is currently producing at a rate of 16-20 barrels of oil per day and at current oil prices it is anticipated to net the Calima C$350,000-$400,000 per annum. These funds will be utilised in the company’s ongoing drilling campaign in the Montney.
Calima Energy Managing Director Alan Stein said the workover of the Paradise well was a strong success for the company and its operational team.
The Paradise well has been brought back onto production with minimal capital investment and without placing demands on management time.
“Revenue from the well will make a useful contribution towards our Canadian overheads without distracting from our primary focus on the Calima Lands where our Montney drilling is progressing well and delivering encouraging results.”
The Paradise well had been shut-in since 2016. Prior to being shut-in the well had produced from the Triassic, Boundary Lake Formation.
The undertook some minor remedial works and secured the necessary permits to bring the well back on production. Oil produced from the well is trucked to a local refinery at Dawson.