Multi-well Brooks Sunburst Drilling Campaign Update

Highlights:

• Gemini #3 well
  • Well was spudded on 18 June 2021 and reached a total depth of 1,960 m (MD)
  • Well to be connected to facilities and infrastructure with initial flow-back and production expected mid/ late July after completion of a short tie-in pipeline to facilities
  • Oil and gas shows as prognosed – type curve production predicted (refer table 1)

• Gemini #1 well
  • Well re-entered and additional horizontal leg added ensuring drainage of reservoir pool maximized
  • Oil and gas shows as prognosed – type curve production predicted (refer table 1)
  • Well has been completed and pipeline connected to Blackspur infrastructure; initial flow-back and production commenced 26 June 2021 – 26 days from spud to on production

• Gemini #2 well
  • Completed and pipeline connected; initial flow-back and production commenced 24 June 2021 – 16 days from spud to on production

• Gemini #4 well
  • Bonanza rig #8 has been moved to location and the well has been spudded. Drilling expected to be competed in 11 days
  • Designed as a “dual leg” horizontal to maximize recovery within the reservoir

• Calima has elected to hold the Brooks drilling program to 4 Sunburst wells (previously 3) and 3 Thorsby wells have been prioritised for Q3 drilling
• Capital program is fully funded from operational cash flows and National Bank debt facility and is on budget (including sidetrack) and importantly ahead of schedule
• Drilling campaign designed to achieve year end production guidance of 4,500 boep/d and the generation of sustainable free cash flow.
• Brooks / Thorsby assets have very low CO2 in reservoir at 2% and 0% respectively
• At US$70 WTI – wells are extremely economic with payback of ~5 months

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About Calima Energy Limited

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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