- Binding agreement to acquire 100% of Blackspur Oil Corp (“Blackspur”), a western Canadian conventional oil-weighted energy producer.
- Consideration of C$17 million; comprised 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.
- Focused High Quality Asset Base: Blackspur’s operations include high quality, producing assets in Alberta Canada with an oil weighted reserve base:
- Net Reserves 1:
- 5.4 MMboe Proved Developed Producing (PDP)
- 16.7 MMboe Total Proved (1P)
- 22.5 MMboe Total Proved and Probable (2P)
- 2020 Q4 average production: ~2,600 boe/d
- Average 2021 forecast production: ~3,000 boe/d (65% oil)
- Estimated Dec 2021 production: ~3,400 boe/d (65% oil)
- Low-cost production: US$26/bbl WTI break-even cost
- Net Reserves 1:
- Substantial Growth Upside:
- Planned organic growth to over 5,500 boe/d by drilling 24 low risk proven undeveloped (PUD) wells by year end 2022.
- In Q3 2018, Blackspur averaged production of 4,400 boe/d and peaked over 5,000 boe/d.
- Large drilling inventory with greater than 60 booked PUD locations.
- Significant Historical Investment: C$200 million invested in Blackspur assets over the last 7 years.
- Leveraged to Oil & Gas Price Recovery: The Blackspur low-cost oil producing assets will give the larger Company a recurring cash flow stream and exposure to improving oil prices, while the significant resource base of the Calima Lands in the Montney gives upside to both improving oil and gas prices and LNG development in Canada.
- High Quality Management Team: Management and operations led by Jordan Kevol, as CEO and Director supported by Blackspur and Calima management.
- Liquidity and Financing: Calima to undertake a capital raising of no less than A$34 million to fund the acquisition, reduce Blackspur indebtedness, provide working capital and cover transaction costs.
- Environmental Technology: Existing investment by Blackspur in regenerative, proprietary H2S removal technology will also position Calima with the ability to lower its CO2 emission rates versus peers and offers a number of positive economic & environmental benefits vs. traditional technology.
- Board & Shareholder support: The respective boards and major shareholders of Calima and Blackspur have approved the transaction with the deal expected to close in April 2021.
Should you have further questions with regards the transaction, require a presentation from management or details on the financing terms and conditions, please contract myself on email@example.com + 61 410 612 920, Ed Mason on firstname.lastname@example.org +61 417 945 500 or Mark Freeman email@example.com + 61 412 692 146.
Details will shortly be available with regards to the retail component of the transaction via a Prospectus offering that will be lodged on the ASX platform and mailed to shareholders, however, if you wish to us to email you the details, please email firstname.lastname@example.org and we will send you the details when published.
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