Published On: January 25th, 2023
Calima Energy (ASX: CE1) is a leading Canadian oil and gas production and exploration company. Calima has successfully achieved several milestones throughout its oil and gas exploration programs. One of the most applaudable breakthroughs in its journey is its revolutionising collaboration with Blackspur Oil in 2021, which turned the Company into a high-margin oil and gas producer leveraged to WTI pricing.
Calima Energy has launched and accomplished many exploration projects, the most recent one being the retesting work program in Montney. Colitco is honoured to capture the thoughts and vision of Calima Energy Chairman Glenn Whiddon, a nonpareil expert in the oil and gas exploration domain.
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Q. Thank you for making time to speak with us, Mr Whiddon. The recent announcement of the Montney retesting program has undoubtedly come as a surprise for all the major players in the industry. The original test was conducted in 2019, we believe. Since how long has the retesting been on the cards?
“Well, Montney is known for its super liquids-rich window in British Columbia. The Montney Formation of Alberta and British Columbia has been the unbeatable target of oil and gas exploration since the 1950s. We were confident about the region’s innate potential, and any subpar results, like the ones in 2019, couldn’t make us believe otherwise. The retesting program has been in the pipeline since then.
Q. Exceptional! Would you like to shed some light on the challenges faced by the Company during the testing of Calima #2 and #3 wells in 2019?
“We faced non-conducive weather challenges as it was the time of early spring breakup or snow melt as we usually say. Due to such circumstances, we had to cut short the production testing of the two horizontal wells. We also had to demobilise the hefty equipment, which led to ineffective results reflecting considerably low condensate rates. But this time, we certainly have a foolproof strategy for a permanent access road to the main highway, and we’re hoping that it moves as expected.”
Q. That’s an inspiring move. Please elaborate a little on Condensate.
“Yes, of course. Condensate is a mixture of light liquid hydrocarbons, similar to very light crude oil. Usually, it is filtered out of a natural gas stream at the point of production, wherein the temperature and pressure of the gas are dropped to atmospheric conditions. As it is a high API value oil, it attracts premium pricing in the Canadian market.”
Q. Interesting. That makes us even more curious about your background. How are you so well-versed in the ins and outs of the mining industry?
“I was a former Executive Chairman, Chief Executive Officer, and President of Grove Energy Limited, a European and Mediterranean oil and gas exploration and development company. Its major operations were in Tunisia, Italy, Slovenia, Romania, the UK, and Dutch North Seas. I also combine my experience as a chairman of a mining company with my background in equity capital markets, banking and corporate advisory, focused on natural resources.”
Q. Your extensive corporate and management experience reflects in the recent partnership efforts made by Calima. Would you like to share your thoughts on that?
“Well, in recent months, we’ve been keen on engaging multiple parties or potential Calima Energy investors showing interest in joint ventures, and partnerships. We also hope to announce term sheets in hand from one or more parties. A partnership agreement including funding would elevate the existing Contingent Reserves in the Development Pending category to 2P Reserves of 45.6 MMboe.”
Q. One of the most significant assets of Calima Energy is the resources owned by the company. Mr Whiddon, can you give us a high-level overview of the same?
“Sure. As of 31 December 2021, the total resources owned by the energy company equate to ~160.5 MMboe (2C) resources. It includes 45.6 MMboe of development-ready category, which will be recategorised as 2P Reserves once funding is secured. Calima also has prospective 2U resources of 126 MMboe.”
Q. Thank you for joining us, Mr Whiddon. We look forward to more of such exemplary project developments and achievements by Calima.
“Likewise. Thank you.”
End of interview
We hope our exclusive interview with Glenn Whiddon, Calima Energy’s Chairman, helped you understand the Company’s strategies, objectives, and prospects. If you want to learn more about their ongoing and upcoming mining and exploration projects, visit the official website now.