ASX-listed oil and gas play, Calima Energy (ASX:CE1) has received positive signs from maiden drilling at its tenements in Canada’s hottest energy province, the Montney, British Columbia.
Its first vertical well has encountered elevated gas readings with gas escape bubbles reported on the rig floor.
Encouragingly, the preliminary results appear to be in line with the company’s extensive research, with the oiler predicting its ~72,000 acres of drilling rights sits on a prolific, liquids-rich portion of the Montney fairway.
Calima has reported that it intersected the top of the hydrocarbon-bearing Montney Formation at 1,562 meters, within just 4 metres of its predicted depth.
Coring operations commenced at 1,571 meters down to 1,801 metres, which is expected to cover approximately 90% of the Montney Formation geology.
Drill core has been recovered and delivered to a laboratory for processing and analysis.
Commenting on progress at its maiden well, Calima Energy managing director Alan Stein said:
“The core recovery exceeds our expectations and will provide valuable data to determine expected reservoir performance.
We should reach the bottom of the well in the next few days and will then proceed to collect wireline log data.
“These data will be used to confirm the depth of both of our horizontal wells which will be drilled immediately following the completion of this vertical well. We look forward to providing updates as we progress through the key stages of the operation,” he said.
The combined wireline and core data will be used to better determine the productivity of Calima’s land holdings and provide important data for an updated reserves report.
The updated reserves report will be commissioned following the completion of drilling and testing operations.
