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Calima Energy’s existing ground in Canada’s prolific Montney oil and gas play lies to the north of Blackspur Oil Corporation’s production assets. Credit: File ASX-listed Calima Energy has stunned the market by transforming itself from gas explorer to oil and gas producer overnight. The company has agreed to acquire 100 per cent of private Canadian oil producer, Blackspur Oil Corporation for a total net consideration of C$17 million in stock and cash plus a further C$30m to reduce Blackspur’s debt. The deal will see a reinvigorated Calima pump out around C$1.8m a month in operating cash flows from oil and gas production. Calima said the commercial consideration for the transaction was based on a dollar-for-dollar Canadian Australian exchange rate and comprises C$12.1m in Calima shares and a cash payment of up to C$4.9m. A further contingent payment of up to C$4.5m in Calima shares is possible if Blackspur pays down additional debt whilst the deal is being consummated. However Calima management said this is more likely to be closer to C$3.2m The deal between the two Canadian-focussed oil and gas players will boost Calima’s resource base by 22.5 million barrels of oil equivalent, or “MMboe” in the proved and […]
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