Calima Energy Ltd (ASX:CE1) has resumed trading on the ASX as a conventional oil and gas producer focused on generating free cash flow from the development of assets in western Canada.
This follows a strongly supported capital raising which raised A$37.9 million and the acquisition of Blackspur Oil Corp.
Two shallow producing fields
Calima has taken advantage of the troubled Canadian oil sector to acquire the highly indebted Blackspur Oil Corp at a very favourable price.
Blackspur’s Brooks and Thorsby assets are two shallow producing fields (50-70% oil) in Alberta with about 60 producing wells and 26 mmboe (million barrels of oil equivalent) 2P reserves.
Calima will continue to focus on development drilling to achieve about 3,000 boe/d (barrels of oil equivalent per day) on the Brooks and Thorsby assets.
2021 – 2022 current guidance/outlook.
Brooks and Thorsby are top-tier assets with breakeven at a crude oil price of US$26 WTI (West Texas Intermediate).
The Brooks and Thorsby assets are in addition to Calima’s strategic holdings in the Montney Formation in northeast British Columbia.
Calima’s footprint in the Montney
Calima has a 100% interest in more than 60,000 acres of Montney drilling rights in British Columbia, with 10-year continuation lease over 49 sections (33,643 acres) following Calima’s successful 2019 drilling campaign.
The company’s assets at Montney include the Tommy Lakes facilities and pipeline infrastructure with a replacement cost estimated at A$85 million.
Calima’s Montney strategy is to prepare for future developments while unlocking value in the short term via joint ventures, partnerships or a corporate transaction.