Calima Energy (ASX:CE1) increases oil and gas production at Brooks
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Calima Energy (ASX:CE1) has ramped up daily oil and gas production at its Brooks project in Alberta, Canada, by 14 per cent over its first quarter output.
The company noted that three horizontal wells are now producing about 505 barrels of oil equivalent (boe) per day from the Sunburst Formation, taking total production up to about 2,818boe/d with about 69 per cent of that being oil.
This increase lends support to the company’s forecast of achieving average production of 3,000boe/d in 2021.
Chief executive officer Jordan Kevol noted that while the results were excellent, there was potential for the oil and gas results to improve as the most recent well to come on production is still cleaning up and could increase further.
Over the coming months, Calima plans to carry out a low-risk drilling program to develop proven reserves.
It will drill six Brooks and Thorsby oil and gas development wells from late May, which will grant significant economies of scale.
This will be funded with operating revenue and the working capital facility provided by National Bank of Canada.
Meanwhile, Kinetiko Energy (ASX:KKO) has executed a binding agreement to acquire the remaining 51 per cent of Afro Energy that it does not already own.
The acquisition will give the company 100 per cent ownership of its South African gas assets, which it says will streamline exploration and development.
Kinetiko’s South African assets cover nearly 7,000sqkm of ground and host contingent resources of 4.9 trillion cubic feet of gas.
It is issuing 595.6 million shares as consideration for the acquisition.
Over in Australia, Vintage Energy (ASX:VEN) has completed drilling of its Vali-2 well with gas shows in the Toolachee and Patchawarra formations and the Tirrawarra Sandstone.
It is now carrying out wireline logging to evaluate these gas shows.
The company noted that the gas shows in the Patchawarra are in line and consistent with those observed in Vali-1 ST1 while the Toolachee is also showing early encouraging signs.