Calima Energy retrieves downhole pressure data that confirms Montney productivity

Calima Energy Ltd (ASX:CE1) has retrieved pressure gauges from Calima-2 and 3 wells in British Columbia, Canada, after 18 months of gathering formation pressure data with this confirming the productivity of the Montney zones. On September 3, the company announced plans to retrieve and analyse the downhole pressure gauges and core from the 2019 winter drilling campaign in Calima-2 and 3 wells. Calima-1 retrieved 230 metres of Montney Core and wells 2 and 3 were drilled as 2,500 metres horizontal wells in the Middle and Upper Montney (respectively). Both wells were successfully flow tested delivering strong initial flow rates resulting in significant resource upgrades. The downhole data was retrieved in September 2020 and provided to Canadian Discovery along with the core resulting in the following outcomes. Development plan Calima's Canada president Michael Dobovich said: “These are positive results which confirm the excellent productive capacity of the Montney section tested by the Calima-2 and 3 wells. “The Middle Montney pressures and rock characteristics are as expected and confirm the productive nature of the horizon. “Enhanced reservoir characteristics of the Upper Montney combined with normalized pressures explains a great deal about why it took longer than anticipated to establish strong flow rates from that interval. “Our development plan will now be based on completion designs optimised for each interval while work on the core and pressure data continues and we look forward to providing future updates as the work is completed.” Middle Montney (Calima-2 well) The Middle Montney zone targeted in Calima 2 tested favourably compared to area analogues, with a pressure-depth ratio of approximately 11.5 kPa/m (19,382 kPa), and flow test condensate-gas ratios (CGR) suggesting over 43 bbl/mmcf. Nearby producers exhibiting similar reservoir conditions, such as C-016-K/094-H-05 in Laprise Creek, have an IP90 liquids rate of 223 bbl/d and a CGR of over 50 bbl/mmcf. Upper Montney (Calima-3 well) This pressure data from Calima-3 compares favourably with other Upper Montney wells at similar depths in the Nig Creek area by Storm Resources and Chinook Energy at Birley Creek to the south. Analogue producers at Birley Creek, have an IP90 liquids rate of 150 bbl/d and CGRs of over 45 bbl/mmcf. Evolving Upper Montney Completions Recent Upper Montney wells with similar to Calima-3 have been completed using ball and seat technology with 30-40 stages across 1,500-2,500 metre laterals and 50-65 metres frac spacing. Their proppant tonnages range between 55-65t/stage and fluid volumes averaging 300m3 per stage. These are far less intense completions than were applied in Calima, which means that future wells can be drilled at significantly lower costs improving overall economics. Core analysis report Canadian Discovery is incorporating this new pressure data into a larger study which includes detailed analysis of the core collected from the Calima-1 well. The Calima-1 well recovered 230 metres of core which represents over 90% of the entire Montney. Designed with improved economics   The combination of enhanced reservoir characteristics and normal pressures means that future Upper Montney wells can be designed with less intense and lower cost completions, leading to improved economics for each well. Revised development scenarios will be re-modeled to include lower well costs.