Published On: June 14th, 2022
Calima Energy – Well Drill Program and Renewed Credit Facility
Post the Russia-Ukraine war, Energy drilling in Australia has slowed down. However, to boost their oil production, Calima Energy announced their 4 Well Drilling Campaign in Brooks. In the initial days of 2022, the honourable President and CEO of Blackspur Oil Corporation, Mr Jordan Kevol, stated its 4 Well Drill Program and Renewed Credit Facility stating that:
“The Company has officially kicked off its post-spring break-up drilling program. The wells scheduled for Q3-2022 are getting a head start based on favourable weather conditions and the availability of a preferred drilling rig. Drilling is anticipated to take 6 weeks for the 4 wells, and the first production is expected from the Gemini wells by 31 July as the wells are on lease tie-ins.”
Calima Energy’s Well Dripping Program
Calima Energy Has Started Its Four-Well Drilling Program
After the success of Gemini #5 in the first quarter of 2022, Gemini #8 has been spudded and has continued the drilling process for ten days up to 670 meters deep. The commencement of drilling the Gemini #9 will start in mid-June and will continue for the next eight days with a length of 1050 meters. It is a follow-up to Gemini #3, which was spudded during July 2021. Both the wells, Gemini #8 and #9, are spudded in Brooks with a Sunburst formation.
Drilling and Production of Calima Energy Ltd.
The anticipated spudding time for Pisces #4 and #5 is considered somewhere in late June or early July, which will continue for almost nine consecutive days. The drilling length of Pisces #4 is somewhere around 1650 meters, whereas the drilling length of Pisces #5 is somewhere around 1415 meters. These wells are the follow-ups of the Glauconitic wells that Blackspur drills.
Calima Energy’s Renewed Credit Facility
After verifying the details, the National Bank of Canada concluded renewing the credit facility for the respective program, and hence, the credit facility was renewed up to C$27 million. However, the credit facility may vary for the shareholders’ capital returns. As mentioned by Glenn Whiddon, Executive Director, Executive Chairman, the cash return to the shareholders of Calima Energy ASX as per the take-profit order is A$ 0.70 per share. Calima Energy’s share price (CE1 ASX) is 0.20 AUD. Because of this credit facility, Calima Energy gets up to a 4% approximation of low-cost capital that can be used for long-term investment programs.
The credit facility was announced for Calima Energy to undertake up to a $2.5 million shareholder distribution that must be paid during September. According to the terms mentioned in the agreement, the value of all the cash distributions goes down dollar for dollar depending on the company’s available credit capacity. Until then, the facility is considered part of its upcoming semi-annual borrowings.
Calima Energy: Insights for Investors
- As the oil and fuel ASX share prices are constantly increasing, the company has taken a step forward with the 4 Well Program.
- Because of the 4 Wells Program, the company’s production will rise in the upcoming months.
- Two sparky formation lakes in Thorsby, Leo #1 and #2, have completed the coil tubing of nitrogen cleanouts.
- Leo #1, #2, and #3 wells are in the production line this year.
- The company has achieved a strong production rate for the year 2022.
The Bottom Line
Calima Energy Limited (formerly Azonto Petroleum Limited) has kick-started the year 2022 with the 4 Well dripping Program. With this program, the production of the company has hiked up. The 4 Well dripping program consists of Gemini #8, Gemini 9, Pisces #4, and Pisces #5, located in Brooks. Among these, Gemini #8 and #9 are drilled with the sunburst formation. Apart from these, the National Bank of Canada has announced the company with a credit of $ 27 million with up to 4% of low-cost capital.
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