Oil and gas producer Calima Energy’s recent success at its Brooks project in Alberta, Canada, prompted the company to construct an export pipeline from its new producing wells to its Bantry 2 oil handling facility. -29. The C$5 million pipeline will give Calima long-term growth capacity and take tankers off the road.
The active producer has signed a finance and construction agreement with infrastructure firm Pivotal Energy Partners to operate a pipeline to transport oil from its recently drilled Gemini and Pisces wells in the southern portion of the Brooks acreage to the Bantry plant to the north.
The company said the pipeline, which is expected to be completed by the end of March, will have economic benefits while meeting environmental, social and governance, or “ESG” criteria. The money saved in monthly trucking costs, approximately C$55,000, will cover much of the estimated $76,000 per month the pipeline will cost Calima to fund the construction and production of any further wells, making the economy of building its own pipeline even more attractive.
In terms of potential ESG benefits, Calima says it will no longer need to flare new wells, which it says will save between 400 and 800 tonnes of CO2 for each well connected to the pipeline. It will also reap the environmental benefits resulting from the removal of several trucks from the road that previously transported the product.
The company says the pipelines are safer, greener and more economical than transporting petroleum fluids by truck.
The pipeline offers significant benefits, including the ability to tie-in recently drilled and upcoming wells, and reduces emulsion trucking for some existing wells, resulting in immediate reductions in operating costs.
Once this pipeline is complete and operational, Gemini 5-7 and Pisces 3 will be connected, but most importantly, it will provide long-term capacity for the anticipated growth in oil and gas volumes from our main Brooks acreage, which will will result in improved operating economy. This pipeline is capable of handling the capacity of our growth plans in the region for the next 3-5 years.
Calima drilled over 10 wells in the Brooks Project area during its recently completed 2021 campaign, targeting the Sunburst and Glauconitic formations.
The laying of the Brooks Pipeline will go a long way in providing the foundation for Calima to profitably expand production in the future. This will also help satisfy its environmentally conscious stakeholders.
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