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Calima Energy gets green light for pipeline connection in British Columbia

Calima Energy, which owns and operates drilling and production rights in British Columbia, Canada, has been granted a permit to construct a pipeline to connect the company's well-pad to regional pipeline and processing infrastructure.

Regulatory approval has been given for the company to construct and operate a 19.5km steel 8-inch service pipeline, which will connect existing and future Calima wells to the Tommy Lakes Field West 2 compressor facilities.

The Tommy Lakes infrastructure has excess capacity, and the company is in discussions with the field operator to determine the best way to use that capacity. Tommy Lakes is a conventional gas and condensate field that produces from a reservoir in the Halfway Doig formation that overlies the Montney.

Calima will continue to obtain the necessary approvals, permits and authorisations needed to complete a field development plan, which will fast-track the development of the Calima Lands for a future operator or joint venture partner.

“We are fortunate to find ourselves in a situation where Calima can access existing infrastructure in a manner that delivers a positive outcome and economics for all parties,” commented managing director Alan Stein. “Our successful drilling earlier in the year confirmed that we have a great acreage position with a substantial resource and the re-use of existing facilities provides cost-effective access to market.

“When funding has been sourced through either the introduction of a joint venture partner and/or project financing facilities we will be able to commence development. Fortunately, major investment in new pipeline capacity across western Canada is starting to have a positive impact on gas prices which gives us cause for quiet confidence.”

The pipeline, which will run through the core of the Calima Lands, will have capacity to transfer up to 50 mmcf/d of wet gas and 1,500 barrels per day of well-head condensate.

Lead engineering contractor for the project design and regulatory approvals process, Trialta Projects, has costed the procurement and installation of the pipeline at around CAD$17 million (€11.5 million).