Calima Energy Limited announced Pisces #6 & #7 wells (100% WI) have been completed and tied in and are both on production as of December 29, 2022. The two wells are in the process of cleaning up and are producing back the frac fluid introduced into the reservoir as part of the completion, however, they are already producing hydrocarbons at strong rates. It is expected that the wells will be fully cleaned up and producing at peak rates within 30 days of initial production.

The 3 (2.5 net) recently drilled Sunburst wells (Gemini #10, #11, #12) are all on production and on average the fourth quarter Gemini program has achieved initial peak 30-day rates approximately 35% higher than budgeted type curves. Current total production from the three wells is approximately 420 boe/d (gross) and 370 boe/d (net). Current corporate production has recently increased to greater than 4,500 boe/d with the new wells coming on, and has continued at these levels throughout the first week of January.

The company continue to monitor the new wells closely as they clean-up and it is determined how this initial flush production will decline. First quarter 2023 Program: The company has commenced a 2 well drilling campaign at Brooks for first quarter 2023. Two horizontal Glauconitic Formation wells (Pisces #8 & #9) (100%WI) will be drilled, with Pisces #8 having been spudded on January 6. Both Pisces wells will be drilled off the same pad, providing savings and efficiencies on drilling, fracture completion, and gas tie-in infrastructure.

Each well is expected to take ~10 days to drill and completion operations will commence shortly after drilling. Both Pisces #8 and #9 are planned to have a 2,750m long horizontal section, which would be comparative to Pisces 2, the longest Glauconitic well drilled by Calima to date. Reservoir conditions, geology, and directional drilling factors will dictate if the wells reach the extended total depth.

Both wells are expected to be completed and ready to be production tested in late February. These wells are a follow up to a successful well drilled by the Company (12-23) which peaked at 217 boe/d (30- day average) and has cumulatively produced over 132,000 boe since it came on production in 2020. Pisces #8 and #9 are planned to be ~15% longer with ~60% more fracs than the 12-23 well resulting in anticipated higher production and reserve expectations for each of the wells.