Published On: October 3rd, 2023
Calima Energy Limited (ASX: CE1/ OTCQB: CLMEF) (“Calima” or the “Company”) is a publicly-traded company focusing on exploring and advancing oil and gas resources. The Company carries out its operations for mineral mining in Australia and Canada and is managed from its central office in West Leederville, Western Australia. Calima Energy Senior Management has made a significant announcement regarding a capital return to its shareholders totalling AUD 7.5 million. This capital return is subject to shareholder approval, scheduled for a vote on October 16th, 2023. The distribution amount is set at 1.2 cents per share.
The Timeline of the Events
- Final Time for Proxy Forms and Record Date for Voting: Shareholders have until October 14th, 2023, to lodge proxy forms and establish the record date for voting at the upcoming meeting on October 16th, 2023.
- Meeting and Results Announcement: The shareholder meeting is set for October 16th, 2023. The meeting results will be announced on the same day.
- Effective Date and Trading Period: The Proposed Tranche 1 Capital Return effective date is expected to be October 17th, 2023. Shareholders who wish to participate should ensure they hold the shares by October 18th, 2023, the last day to trade shares entitled to participate in the capital return. Starting on October 19th, 2023, shares will be traded on an ‘ex return of capital’ and ‘ex-dividend’ basis, meaning the price may adjust to reflect the upcoming capital return.
- Record Date and Payment Date: The Proposed Tranche 1 Capital Return record date is October 20th, 2023. Shareholders meeting the criteria will receive the capital return. The actual payment is expected on October 27th, 2023.
Figure 1: The Events and the Dates as per the Proposal
Calima Energy Limited emphasises the importance of shareholders updating their bank account details on the Computershare platform. It ensures a direct transfer of the funds to their accounts, avoiding delays or complications in receiving the capital return.
To facilitate the capital return process, the Company requested its shareholders to visit the following website: https://www.computershare.com.au/easyupdate/ce1
Upon accessing the above website, the shareholders are required to log in using their SRN and specify their country. Furthermore, for foreign shareholders anticipating a capital return exceeding AUD 100, the Company offers the option to update their payment preferences. To do so, shareholders must select “Add New Payment Instruction” and choose “Global Wire” as the preferred payment method.
Projects and Activities of Calima Energy Limited
Calima Energy Limited has two primary operations- Brooks and Thorsby. Calima Energy Limited’s merger with Blackspur Oil in 2021 marked a transformative shift, turning it into a high-margin oil and gas producer. Carrying out mineral mining in Australia and Canada, their strategic holdings in the Montney Formation offer exposure to rising natural gas prices.
Calima Energy, led by Chairman Glenn Whiddon, boasts valuable Brooks assets covering over 69,000 acres in Alberta, Canada. With a focus on the Sunburst and Glauconitic formations, they yield over 75 wells, producing 2,600+ boe/d. Their eco-friendly approach includes low-cost development in the Sunburst Formation and reduced CO2 content. Calima Energy’s diversified portfolio includes exploration in rare earth metals, aligning with Australia’s natural resources sector.
Figure 2: Locations of the Operations of Calima Energy Limited (Brooks and Thorsby)
About Calima Energy Limited Chairman, Mr Glenn Whiddon
Mr Glenn Whiddon, Chairman of Calima Energy Limited, brings a wealth of expertise in equity markets and natural resources. With experience in senior management, he leads Calima’s projects, focusing on efficient company funding and investor relations. Mr Whiddon’s leadership is pivotal in guiding the Company’s initiatives, ensuring it successfully navigates the dynamic energy sector while maintaining strong investor relationships.
Investor’s Outlook
- The announcement of an AUD 7.5 million capital return by Calima Energy Limited can offer an immediate financial benefit to investors who may choose to reinvest or use the money for other investment opportunities.
- This capital return announcement suggests that the Company has effectively managed its finances, indicating a positive sign for investors.
- Calima Energy has employed a hedging strategy to manage oil price fluctuations, including WTI benchmark and WTI-WCS differential hedges. They have currently hedged around 34% of their oil production for September to December 2023 at a floor price of approximately WTI AUD 77/bbl, allowing for full participation in WTI price increases, except for a capped amount in Q4 at WTI AUD 97.10/bbl.
- As of October 2nd, 2023, the Calima energy share price stood at AUD 0.093 per share. The average 52-week range was AUD 0.082 to AUD 0.150.
- The market capitalisation of Calima Energy stood at AUD 58.20 million as of October 2nd, 2023.
- As of October 2nd, 2023, the Company has 625.72 million shares on issue.
Visit the official WEBSITE for the latest updates and details.
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