SYDNEY, CANADA: Calima Energy Limited has entered into a binding definitive agreement with Astara Energy Corp. to sell 100% of its ownership in its wholly owned Canadian subsidiary, Blackspur Oil Corp., the owner of Brooks and Thorsby production assets (Alberta Assets) for a cash consideration of A$83.3 million.
The Board of Directors has recommended the Blackspur Sale as the market capitalisation of the Calima Energy on the ASX has not reflected the inherent value of Blackspur, with the Blackspur Sale value approximately double the current market capitalisation of the Company.
It is the company’s objective to distribute no less than 85% of the funds received from the Blackspur Sale to Calima shareholders in the most tax effective form and the Company will seek an ATO ruling on this matter in a timely fashion.
During 2023, the Company has also returned A$10 million in previous distributions to shareholders.
The balance of the proceeds from the Blackspur Sale are intended to be used to fund the Company’s future exploration programs and to pay for ongoing operational and administrative costs.
Commenting on the Blacksburg Sale, Mr Glenn Whiddon, Chairman of Calima said: “For some time, the share price of Calima has not accurately reflected the value of Calima’s oil and gas assets vis a vis our Canadian peers. The Blackspur Sale presents an excellent opportunity for Calima shareholders to benefit from this differential. It is the Board’s objective to return the maximum amount of these proceeds to shareholders. I wish to thank all stakeholders for their support over the past few years, and importantly the management team and field staff of Calima for their focus and dedication to the Company’s assets.”