Blackspur Reserves as at June 30, 2021 - audited by InSite Petroleum Consultants Ltd:
3P reserves 25.7 million boe
2P Reserves 21.4 million boe
1P Reserves 16.1 million boe
PDP Reserves 5.2 million boe
Focused asset base with Brooks and Thorsby leases and careful production management allowed Blackspur to maintain reserves steady after production of 1.2 million boe since 31 Dec 2019 and only 2 wells drilled prior to the Calima Acquisition
Updated Reserve Report and Development Plan incorporates:
64 development wells (23% of well inventory)
Development plan for proved and probable well locations are executed / drilled within a 5-year period
Abandonment, decommissioning, reclamation and salvage of facilities, as well as inactive assets and costs for each of the Company’s existing and proposed wells
Prepared in accordance with the Society of Petroleum Engineers’ Petroleum Resources Management System (SPE-PRMS)
Blackspur estimates approximately 275 gross wells will develop the entire reserve position on its existing lands > 5 years out.
93% of undeveloped Brooks and Thorsby acreage has no reserves booked currently, representing significant upside
RESEARCH REPORT 16 August 2021 CORPORATE CONNECT
INITIATING COVERAGE BLACKSPUR ACQUISITION IS TRANSOFORMATIVE
Summary
We initiate coverage on Calima Energy (“Calima” or the “Company”) on a free cash flow (“FCF”) basis with a value of AUD0.025/share. Calima is an Australian listed exploration and production (E&P) company, and a Canadian oil and gas pure play. Its assets include a large-scale liquids rich gas play in the Montney fairway in British Columbia, a well-established oil and gas producing region with a supportive energy production policy.
On April 30, 2021, Calima completed the acquisition of Blackspur Oil (“Blackspur’). Blackspur was caught out in a poor oil environment while laden with a heavy debt burden and Calima was able to capitalise on the opportunity, acquiring the target at a deep discount of C$61.5m, including C$40.0m in debt. This is against over C$200m invested by Blackspur since inception in 2012. The acquisition is earnings accretive and has raised Calima’s status to the realm of a mid-tier, ASX-listed oil producer.
Our one-year price target of AUD0.025/share implies an upside of over 2.5x
