Aspiring oil and gas producer Calima Energy (ASX:CE1) is on the precipice of production testing, with water pumping underway at its maiden wells, which have been recently drilled in the prolific Montney basin in Canada.
The water pumping will be used for stimulation at its two horizontal wells as part of production testing, which is set to get underway next month.
The production testing represents a key milestone for Calima, with the results to indicate the productivity of its wells.
Both the wireline log testing and core analysis at its wells have returned favourable results, boosting the explorers hope that it has hit yet another gushing Montney discovery.
Commenting on the progress to date Calima managing director Alan Stein said:
Following on from the successful completion of drilling, ahead of schedule, the operations team in Canada continue to deliver outstanding results.
“Calima has always contended that the northern extension of the Montney Formation, located in Canada’s most active energy exploration province, holds significant levels of oil and gas.
“We are entering a very exciting phase as we begin to unlock the value of our 72,000 acres of Montney drilling rights,” he said
According to the company water pumping is progressing rapidly, with Calima fully-permitted to source its water from the nearby Sikanni Chief River.
Total water storage on site is 25,200m3 within four tanks, covering a combined land surface area of 8,335m2.
Calima expects its well stimulation to commence in the next few days, with each well expected to take 6-7 days.
