THE share price of ASX-listed Calima Energy Limited (ASX: CE1) jumped more than 11 per cent in early markets after the company reported promising early results from coring operations at its maiden well into the prolific Montney Formation in Canada.
Calima reported that elevated gas readings were recorded during coring operations of its Calima Tommy A-54-C/94-G-09 well, with a large section of the targeted Montney Formation successfully cored.
The well intersected the top of the Montney Formation at 1,562 metres, before coring operations commenced at a depth 1,571m with successful core recovery down to 1,801m.
Early prognosis of the results has identified that the Montney is 25 m thick at the well location which matches pre-drill predictions and is comparable to the thickness of section encountered by operators in adjacent permits.
Importantly, the cored section gives an almost complete (90%) section through the Montney.
Calima’s Managing Director, Alan Stein, said that all core has now been recovered to surface and delivered to the laboratory for processing and analysis.
“The core recovery exceeds our expectations and will provide valuable data to determine expected reservoir performance,” Mr Stein said.
“We should reach the bottom of the well in the next few days and will then proceed to collect wireline log data. These data will be used to confirm the depth of both of our horizontal wells which will be drilled immediately following the completion of this vertical well.”
Mr Stein said elevated gas readings were recorded during coring operations and gas escape bubbles were noted on the rig floor as the core was recovered to surface.
“This is in-line with expectations and is an encouraging indication of hydrocarbon saturation. The background gas readings in the lower parts of the Montney were particularly elevated. This will be investigated further through detailed core analysis in the laboratory and evaluation of the wireline logging data which will be acquired over the coming days.”