Calima Energy progresses ‘extremely economic’ Sunburst drilling in Canada

• Calima’s May 2021 initial 4 well drilling campaign targeting the Sunburst formation (Gemini 1, 2, 3 & 4) in Alberta, Canada successfully progressing
• Gemini 1, 2 and 3 wells now in production
• Gemini 4 well has finished drilling and is expected to be in production by 28 July 2021
• Revenues from the current drilling campaign wells will be recognised partially in July and from August onwards.
• At US$70WTI – wells are extremely economic with payback of ~5 months
• Thorsby Drilling Campaign – 3 development wells (designated Leo 1, 2, and 3 wells) have been prioritised for Q3 drilling and tie-in
• Drilling campaign designed to achieve year end production guidance of 4,500 boep/d and the generation of sustainable free cash flow

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About Calima Energy Limited (ASX: CE1)

Calima Energy Limited is a publicly listed mid-tier oil and gas producer in Western Canada. They have three major operations within British Columbia and Alberta, namely Montney, Brooks and Thorsby. Calima is focused on high growth exploration and production and has assembled an exciting and growing inventory of drilling locations across a sizeable land base.

Calima is continuing development drilling to achieve 3,000 boe/d on the Brooks and Thorsby assets and is commencing a 24 well development drill program over the next 18 months. By Year End 2022, Calima plans on growing to 5,500 boe/d.

Calima has invested in regenerative, proprietary H2S removal technology and has positioned itself with the ability to lower its CO2 emission rates to offer a number of positive economic and environmental benefits.

Calima’s assets are low cost and a break even cost of ~US$26/bbl WTI including $10bbl operating and transport costs.

Overall, Calima’s current assets and vision position the company well to continue to grow and take advantage of the improving oil prices.

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