Calima Energy Limited confirmed that the Gemini #5 Sunburst stratigraphic test well at Brooks has reached TD and the rig has been released. Vertical exploratory test: The Gemini #5 well targeted the Sunburst Formation in an area where there was very little well penetration through the Sunburst. Blackspur completed a 3D seismic program a few years ago which provided the lead, and the vertical stratigraphic test well has proven the presence of Sunburst age rock that appears to have sufficient porosity and enough pay-zone above the water contact to be a producible prospect.

The prospective zone is anticipated to be perforated in the coming months, and a subsequent production test will provide data on whether the well warrants equipping and tie-in. If the production test is successful, and pending further geological and geophysical work, the Company believes that 1 to 6 new horizontal Sunburst locations may be present, that were previously un-booked. Completion and Flowback: As this Sunburst well is considered a conventional oil play, no fracture stimulation is anticipated for this vertical well.

The porous zone will be perforated, and inflow is expected immediately. It will take a number of weeks of production testing to accurately determine inflow rates, and water cuts. If sufficient, the well will be then shut in and will await production equipment and pipeline tie in.

Tie-in operations Upon a successful production test, and if sufficient oil and gas rates are realized, the Gemini #5 well will be tied into Calima's nearby 2-29 oil processing facility. This tie in will be part of a larger infrastructure project that Calima anticipates embarking on in the coming months. Future horizontal Sunburst wells drilled as a result of this exploration success may also be tied into the same facilities.

Secondary discovery: Gemini #5 was drilled in this location to not only prove up the Sunburst zone, but also to test for the potential of a mid-Mannville gas bearing zone. 3D seismic indicated the potential for the Mannville zone that would be analogous to a nearby gas producing vertical well that had an IP30 of over 1mmcf/d and has produced 0.8bcf of gas. Gemini #5 has confirmed the presence of this zone, and the electric logs indicate this may be a new producing zone.

Further geoscience work is required.