Calima Energy to acquire Canadian oil and gas company Blackspur Oil
Australia-based Calima Energy has agreed to acquire Canadian oil and gas company Blackspur Oil for CAD 17 million ($13.35 million).
Calima Energy will also assume Blackspur Oil’s net debt of $43 million.
Blackspur Oil has producing oil and natural gas assets in the Brooks and Thorsby areas in Alberta. The assets’ 2P reserves are 22.5 MMboe, 1P reserves are 16.7 MMboe, while PDP reserves are 5.4 MMboe.
The average production for Q4 2020 of the assets was 2,600 boe/d (70% oil).
Calima Energy said that the merger with the Canadian oil and gas company will help it become a high margin oil and gas producer.
The Australian oil and gas company has a 100% interest in over 60,000 acres of drilling and production rights in the Montney Formation in British Columbia.
Glenn Whiddon – Calima Energy Chairman said: “The merger with Blackspur creates an emerging oil and gas producer with production and current operating cashflow of ~C$1.8million/mth in addition to a substantial reserve and resource base for future growth. At US$50 WTI the growth model is self-funding (including debt repayments) on the path to 5,500 boe/d and operating cashflow of ~C$3.5 million/mth.
“The Montney acreage offers material upside exposure to rising gas prices from the growth of the LNG industry in Canada and North American demand. We look forward to combining with the Blackspur team and growing the Company for all shareholders going forward.”
In Brooks, Blackspur Oil produces from the Sunburst and Glauconitic formations where it has an average production of around 1,860 boe/d in Q4 2020 with a working interest of 94%. Blackspur Oil has so far drilled 48 wells in the Brooks area.
In Thorsby has drilled 11 wells so far and has an average production of around 740 boe/d in Q4 2020 in the Sparky Formation where it has 100% working interest.
Jordan Kevol – Blackspur Oil CEO, who will be the CEO of the combined company, said: “Blackspur is excited to be merging with Calima as it provides all shareholders an opportunity to unlock value in the Blackspur assets, as well as future growth within the Western Canadian Sedimentary Basin.
“The growth opportunity from a cashflow perspective enables Blackspur to leverage its position to grow production organically and through acquisitions within a top tier country. Post-merger, Blackspur’s strong balance sheet and asset base, along with a low environment liability (ARO), will be an ideal combination to take advantage of current market conditions.”
The transaction is expected to be wrapped up in April 2021.