Calima Energy Limited (ASX:CE1) is a Canada-based oil and gas explorer and producer. Canada is one of the premium investment destinations with leverage to rising energy markets in North America.
Calima is a growth-focused oil and gas player with a free cash flow. The Company’s merger with Blackspur Oil during the second quarter of 2021 transformed the Company into a high-margin and cash-generating oil and gas producer overnight.
The Company boasts a 2P reserve of 22.5 mmboe with a huge upside in resource potential at the current 2C reserves value of 192.1 mmboe. The breakeven cost is figured out in the range of US$26/bbl from its low-cost production operations.
Since its merger with Blackspur, Calima operates two assets in the Alberta region - Brooks and Thorsby. Both the assets can be developed at low-cost and hold huge potential for long-term upside in cash flows. Brooks asset has a large resource in place, and multiple oil pools have been delineated and developed on the 53,093 acres of tenement area. The producing wells on the Sunburst formation on the Brooks present excellent economics. These wells have significantly outperformed the type curve production and reserve estimates performed by third-party evaluators.
Thorsby is spread over an area of 63,946 net acres, and two pay zone formations Sparky and Nisku, have been identified on the asset. The wells drilled on the Sparky formation have exhibited excellent hydrocarbon production potential and outperformed the estimates.
Calima also holds more than 60,000 acres of landholding in world-class Montney Play. The Company hold drilling rights over the tenure and undertook successful drilling campaigns in 2019. The asset has excellent potential for crude oil, natural gas, natural gas liquids and dry gas. Key pipeline infrastructure lies in the close vicinity of the project to facilitate the export of hydrocarbons to the U.S markets.
Calima Energy is strategically well-positioned in the oil and gas market with long term growth opportunity. Its highly experienced management team is sailing the Company on a fast-track growth and development path.
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