Calima Energy Ltd (ASX:CE1) (OTCMKTS:RLTOF) (FRA:R1Y) has received firm commitments totalling A$37 million that will part-finance the acquisition of Blackspur Oil Corp and grow oil and gas production to 5,500 barrels of oil equivalent per day (boed) by the year ending 2022.
The company received strong demand from existing shareholders and new investors in a A$31 million conditional placement, including high quality international and domestic institutions.
The company has also made a retail offer prospectus dated March 10, 2021, to raise A$6 million.
Validates quality of asset base
Calima Energy executive chairman Glenn Whiddon said: “We are extremely pleased with the exceptionally strong reaction for our capital raising, which validates the quality of the asset base in Calima Energy following the acquisition of Blackspur.
“We look forward to completion, growing our production base and generating significant operating cash flow to create value for shareholders.”
Settlement of placement
Settlement of the placement is scheduled for April 27, 2021, while the completion of the acquisition of Blackspur Oil is scheduled for April 29, 2021.
The new shares to be issued under the placement are expected to commence trading on the ASX on April 30, 2021.
All shares issued under the placement will rank equally with existing ordinary shares.
Evolution Capital Advisors Pty Ltd acted as the lead manager and bookrunner, Auctus Advisors LLP was the UK placing agent on the placement and Jermyn East Capital Pty Ltd acted as corporate advisor to the company.
Retail offer
To apply for shares in the company pursuant to the prospectus, investors are urged to visit the link https://ce1offer.thereachagency.com/offer/ and follow the instructions to access the prospectus.
Alternatively, investors can contact the company at info@calimaenergy.com to obtain a paper copy of the prospectus.
Blackspur acquisition
Calima Energy entered into a binding agreement to acquire Blackspur Oil, a privately-held Canadian company with producing oil and natural gas assets in two core areas within Alberta - at Brooks and Thorsby.
The successful merger with Blackspur will transform Calima into a high margin oil & gas producer leveraged to West Texas Intermediate (WTI) pricing, targeting more than 5,500 bpe/day plus exposure to rising natural gas prices via its strategic holdings in the Montney Formation.
Consideration for the deal is C$17 million, comprising C$12.1 million in Calima shares and a cash payment of up to C$4.9 million, plus contingent consideration tied to net debt adjustments at closing (A$1:C$1).
This arrangement includes all assets, reserves, production and the management team of Blackspur.