Calima Energy watches as merger target Blackspur completes three well drilling program aimed at boosting Brooks production

Calima Energy Ltd (ASX:CE1) merger target Blackspur Oil Corp has completed the drilling portion of a three-well program at the Brooks asset in Alberta, Canada, aimed at increasing production to 3,400 boe/d by year-end. The drilling is targeting the Sunburst Formation and the new wells were drilled to an average total depth of 2,021 metres with an average horizontal leg length of 770 metres. Calima is merging with Blackspur in late April 2021 following a A$37 million financing announced this month which includes a A$31 million conditional placement to institutional and sophisticated investors and a A$6 million retail offer. Option to exceed project target Chief executive officer of the combined company, Jordan Kevol, said: “Blackspur is excited to be delivering three additional wells into the production profile prior to the merger completing. “There may be an opportunity to accelerate or exceed the projected target of a 3,000 boe/d average for 2021. “Blackspur’s Sunburst drilling inventory maintains positive economics down to around $31 WTI (including all drilling costs) adding significant optionality on its 2021 drilling program.” Sunburst Formation wells are typically drilled in seven days due to the shallow nature of the target interval and the conventional nature of the wells. The first well was spudded on March 3, 2021, and drilling of the three wells was completed on March 21, 2021, under the budgeted time and cost for C$2.4 million. Completion procedures to be carried out Downhole pressure gauges have been placed in the wells and over the coming weeks, Blackspur will perform completion procedures for the three wells which will be followed by the equipping and tie-in process. Due to the conventional nature of the interval with high porosity and permeability, the completion process for a Sunburst well does not require fracture stimulation, acidizing, or any stimulation. Each of the wells is considered an 'on lease tie-in', meaning they have been drilled from existing well sites that are already tied into Blackspur’s extensive infrastructure with available capacity and thus do not require any long pipelines or any additional oil processing facilities.