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The Markets
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Calima Energy raise A$20 to 'manage capital, pay down debt' and to seize upon upside in oil price

Calima Energy raise A$20 to 'manage capital, pay down debt' and to seize upon upside in oil price

Calima Energy Ltd (ASX:CE1) (Calima Energy Ltd (ASX:CE1)) Glenn Whiddon talks to Proactive London's Katie Pilbeam about their A$20 million raise via an institutional placement of 100 million new fully paid ordinary shares to institutional and sophisticated investors at an issue price of A$0.20 per share.

The firm's business strategy is counter-cyclical, designed to take advantage of momentum returning to the oil and gas sector after the savage downturn in global oil and gas prices that started in 2014.

The company’s core asset lies within a liquids-rich sweet-spot of the Monetary Formation in northeast British Columbia where it has been able to covert around 60% of its total 63,000 acres holding to 10-year lease through a successful exploratory drilling program.

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