Calima Energy Limited announced that the Calima #2 and Calima #3 test program has been completed on time and substantially under budget. Testing and supporting equipment have been demobilised. Total costs are estimated at AUD 2.0 million; the net costs after the offset of the sale of ~5,900 bbl of condensate are expected to be ~AUD 1.4 - AUD 1.5 million.

Clean condensate was sold on average at WTI plus $4 per barrel. The primary goals of the test program were: Validate the Company's internal type curves. Flow the wells at multiple constrained rates to accurately determine how to maximise the condensate gas ratio (CGR); and Determine potential production parameters required to maximise the wells economic value.

As condensate is the high value production stream (priced at ~$4 premium to WTI), optimising the gas and condensate rates will generate the higher NPV per well. The well test analysis will aid in the development of accurate Inflow Performance Relationship ("IPR") curves, validation of type curves, and calculation of the maximum potential gas flow rates. Pressurised gas and liquids sampling was completed and will be used in laboratory tests to determine the Pressure-Volume-Temperature relationships of the reservoir fluids and determine the NGL volumes in the gas phase.

NGL's (propane, butane, and pentane) are an additional value stream that is recovered through gas processing which may add an additional 15-25 bbls/mmcf of total liquids recovery. To capitalise on the fixed costs associated with the testing program, the Company commenced construction on the pipeline right of way that will connect the A-54-C pad containing Calima #2 and #3 to Tommy Lakes infrastructure.