Calima Energy Ltd Presenting at Good Oil 2019

THE CONFERENCE CALLER: Calima Energy (ASX: CE1) is in a farm‐in agreement involving oil and gas licences prospective for the Montney Formation in British Columbia (BC), Canada.

The Farm-in Agreement allows Calima to acquire a working interest of up to 55 per cent in the Montney project and operatorship of the project.

The company recently completed a three-well drilling campaign on its Calima Lands in BC, the results of which validated its early geoscience work, which predicted that the Calima Lands would be rich in gas, condensate (or light oil) and natural gas liquids.

“Our target was to match the results achieved by our regional neighbours who are established producers,” Calima Energy managing director Dr Alan Stein said.

“We believe our results show the potential to match or exceed the results of our immediate peer group.”

Results from the drilling campaign demonstrated a 35 per cent Well Recovery Increase taking the estimated ultimate recover of each well to 8.4 billion cubic feet (Bcf) per well.

Based on limited test results, the company conservatively estimated gas-to-liquids ratio conservatively estimated at 45 barrels per million cubic feet of gas (bbl/mmcf) with 65 per cent of the liquids being high-value condensate (priced at WTI).

Calima expects the liquids ratio to increase once the wells are cleaned up and on steady production.

Canada, and the Montney region, is a good place for an aspiring producer as it a global top five gas producer.

The Montney accounts for almost half of Canada’ gas and is one of North America’s most productive and lowest cost resource plays.

Production rates have been increasing in the region by 20 per cent per annum over the last three years.


Calima Energy Progresses Sale of Namibia PEL 90

THE BOWSER: Calima Energy (ASX: CE1) has entered into a formal sale and purchase agreement to sell the company’s interest in the Namibia PEL 90 licence (Block 2813B).

Calima Energy is selling the licence to Tullow Namibia Limited, a subsidiary of Tullow Oil plc, a leading deep-water operator with a track record of working in Africa.

Calima explained the transfer of title contemplated by the agreement is subject to customary Government and partner approvals relating to the assignment of interest and transfer of Operatorship.

Calima will receive US$2 million on completion with subsequent success bonuses totalling US$10 million to be paid in two equal tranches (US$5 million) following the grant of a production licence and then upon the commencement of commercial production.

“The completion of a binding sale and purchase agreement is a significant milestone towards completion of this transaction,” Calima Energy managing director Alan Stein said in the company’s announcement to the Australian Securities exchange.

“We shall now work with the Government and our joint venture partners to secure the necessary consents and approvals required to reach completion.”