Production increases to 2,818 boe/d

• IP30 flow rates of 505 boe/d exceeded type curves estimates by 28% for Sunburst wells
  (393 boe/d budgeted)
  • Capital expenditure was 20% under budget @ C$2.2 million

• Type Curve Economics for Sunburst conventional wells at US$ 60 WTI 1
  • Payback expected in less than 6 months
  • Estimated Ultimate Recovery of Sunburst wells is ~218,000 boe (77% Liquids)
  • Net back (1st year) C$34.04 boe
  • Before tax IRR >500%

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Calima Energy Limited (“Calima” or the “Company”) (ASX: CE1) is pleased to announce the flow rates from the 3 horizontal Sunburst Formation operations performed by Blackspur Oil Corp. (“Blackspur”) at its core Brooks area in March 2021. Blackspur is a wholly owned subsidiary of Calima, acquired on 30 April 2021.

The three wells (2 new wells and 1 re-entry), are currently producing a combined ~505 boe/d (80% oil weighted) on an IP30 basis, demonstrating the top tier economics of open hole Sunburst wells. Current production is ~ 2,818 boe/d (69% oil), an increase of 14% from Blackspur Q1 2021 production of ~2,475 boe/d (68% oil).

For CY2021, Calima forecasts 3,000 boe/d average production and a December 2021 exit rate of 3,400 boe/d, delivering ~ C$18 million of adjusted2 EBITDA for the 8 months ending 31 December 2021.

Over the coming months, Calima plans an active, low risk drilling program developing proven reserves. A total of six Brooks and Thorsby development wells will commence in late May 2021. By drilling multiple wells the Company will benefit in significant economies of scale. The drilling program will be funded with operating revenue (currently C$4 million per month) and the working capital facility provided by National Bank of Canada. The drilling program for the next three months
is:

• 3 Brooks (Sunburst) wells commencing late-May 2021; and
• 3 Thorsby (Sparky) wells commencing mid July 2021.

Over the coming weeks, should energy prices remain strong, the Company will consider an acceleration of its 2021/22 drilling campaign so long as it can be done in a financially prudent manner. An update in late May 2021 is anticipated.

Click here to read the full ASX announcement.

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.

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