Emerging oil and gas company Calima Energy (ASX:CE1) holds a considerably stronger stake in Canada’s hottest energy province, completing acquisitions of its farm-in partners TMK Montney and TSV Montney.
The consolidated company wholly-owns drilling rights to 72,000 acres in British Columbia, Canada, simplifying project economics and removing duplicated technical and administrative costs.
The move also adds to Calima’s impressive management with the appointment of Mr Mark Freemen as a business development manager, with Mr Freeman previously providing management services to TSV Montney.
Mr Freeman is a Chartered Accountant with more than 20 years’ experience in corporate finance and the resources industry.
Calima Energy (ASX:CE1)
The enlarged management adds to the Calima team, which predominantly consists of the same core group of geologists that established UK oil giant Ophir Energy (LSE: OPHR).
Ophir, led by the now managing director of Calima Energy Alan Setin, grew from an oil and gas start-up investing in advanced exploration techniques to become a major producer and FTSE250 company.
At the time of public listing, Ophir Energy was London’s largest ever oil and gas industry IPO.
Commenting on the acquisition, Calima managing director Alan Stein said:
The merger has been a very successful outcome for the Company and we now look forward to the drilling campaign which will commence before the end of the year.
The Montney is continuing to see ongoing significant and substantial investment. Over 350 horizontal Montney wells were drilled in the first quarter of this year and M&A valuations for early stage acreage have increased from an average of $2,500 per acre last year to $4,500 for the first half of this year.
With an acreage position of 72,000 acres the Company has been fortunate to establish a significant land position in a world class hydrocarbon province.”
The Company is preparing to drill several wells close to existing infrastructure, including pipelines and processing facilities.