Calima Energy Ltd has advanced its liquids-rich Montney play through new developments in its landholdings, it said Sept. 7.
Calima Energy Ltd has licensed a high-quality 3-D seismic database covering core portions of its landholdings. In addition, it has acquired a regional well log database that includes more than 60 Montney penetrations within 35 kilometers of Calima’s landholdings. The seismic and well database advancements will be used in the subsurface evaluation and well planning, which Calima Energy intends to commence drilling activities in 2018.
Calima’s landholdings, located in the Caribou area of British Columbia, cover an area of 51,455 acres that has been built up over the past three years through established open land sale auctions in British Columbia. Calima Energy continues to participate in regular government land sale auctions with a view to increasing its position to 65,000 acres to70,000 acres by year-end, providing a sound foothold in the basin and providing significant scale in a tier 1 basin.
Calima Energy expects the area to be liquids-rich and comparable to the acreage operated by Saguaro Resources Ltd, immediately to the southeast, based on mapping methodology across the Montney play including well penetrations from Calima’s landholdings.
Saguaro has invested more than CA$400 million (US$329 million) in drilling and infrastructure. As of Aug. 2017, Saguaro has drilled 46 wells with current production averaging 10,500 barrels of oil per day (boe/d). The peak daily production in July 2017 exceeded 15,500 boe/d.
Condensate and NGL account for 25% of Saguaro’s production volume, but deliver almost 50% of revenue. Saguaro reported a EUR of 6 billion cubic feet (Bcf) to 8 Bcf per well which gives an international rate of return at 40% to 83% respectively, at current prices.