Published On: February 29th, 2024
Calima Energy Limited (ASX:CE1 / OTCQB: CLMEF) (“Calima” or the “Company”) has announced its successful settlement of the Blackspur Oil Corp. to the Astara Energy Corp. with net proceeds of AUD 81.6 million.
The Company intends to distribute AUD 80 million to shareholders. The Company seeks a ruling from the Australian Taxation Office (ATO) to ensure the return is treated as capital for tax purposes. Upon ATO confirmation, the company will distribute a Notice of Meeting to shareholders seeking approval. This process may take up to 3 months.
After the complete allocation, Calima Energy will hold 5-6 million in cash and operate the Paradise Field in British Columbia, which generates an annual cash flow of AUD 350,000. On reviewing the success of the Blackspur trade, Chairman Mr. Glenn Whiddon stated that the 80% premium to its market capitalization before announcing the deal reflects the quality of the Blackspur assets, which ASX investors needed to recognize. Calima Energy plans to review new project opportunities; however, the securities may be by the ASX after 2 July 2024 until a suitable project is acquired.
Mr. Glenn Whiddon, Chairman of Calima, shared his thoughts on the Blackspur Sale.
“I want to thank the Blackspur team, Calima management, and Board for their professionalism and support during this sale process, especially as much happened over the Christmas and New Year. We wish Astara well as the new owners of Blackspur.”
Mr. Whiddon further stated, “Despite investors’ shift away from junior energy companies in Australia and the great work undertaken by the Calma and Blackspur team, it was difficult to achieve an appropriate valuation on the ASX. The sale to Astara represented an 80% premium to the share price pre-announcement, underscoring the quality of the business. The board considers it appropriate that those funds are returned to shareholders, and we are actively considering seeking an ATO ruling. Following the capital return, and subject to ASX rules, Calima will remain listed and funded and actively seek opportunities to generate further value for shareholders.”
About Glenn Whiddon, Chairman of Calima Energy
Mr. Glenn Whiddon, Chairman of Calima Energy, and several other Australian listed public companies with a focus on natural resources
About Calima Energy Limited
Calima Energy Limited is an Australian company that produces and explores oil and natural gas. Their operations focus on generating a consistent free cash flow to achieve higher growth. With commitments towards the Environmental, Social, and Governance (ESG) code and a strong emphasis on sustainability, the company prioritizes the preservation of natural ecosystems by adhering to appropriate environmental measures.
Investor’s Outlook
- Completing the sale to Astara Energy Corp. marks a significant milestone for Calima Energy Limited, with net proceeds of AUD 81.6 million. This strategic move allows Calima to streamline its portfolio and focus on critical assets, enhancing operational efficiency and financial flexibility.
- Calima’s commitment to maximizing shareholder value is evident in its plan to distribute AUD 80 million from the Blackspur Sale in a single tranche. This initiative underscores Calima’s dedication to delivering tangible benefits to its investor base.
- Calima will maintain a robust financial position post-distribution with approximately AUD 5-6 million in cash. Additionally, the Company will retain a 100% interest in the Paradise Field in British Columbia, generating a steady free cash flow of around AUD 350,000 annually. This combination of liquidity and a stable asset portfolio positions Calima to explore strategic opportunities and create long-term value for investors.
- The stock price of Calima Energy Limited stood at AUD 0.125 per share as of February 27th, 2024.
- The Company’s market capitalization is AUD 78.22 million.
Visit the Company’s official website for detailed information and updates.
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