ASX-listed energy company Calima Energy (ASX:CE1) has moved to compulsory acquire all shares in joint-venture partners TMK Montney and TSV Montney, which will provide the company with 100% ownership of its Calima lands, located in northern British Columbia, Canada.
Calima currently has acquired approximately 98% of TMK and 91 percent of TSV and expects to complete the twin offers before the end of July.
The move simplifies the ownership structure of the Calima lands, which consist of 72,000 acres of drilling rights, situated in a highly prospective section at the northern end of the super-liquids rich Montney Fairway.
The Montney represents Canada’s most active e oil and gas play, with C$5.2 billion in investment last year.
Calima Energy (ASX:CE1)
As we complete the acquisition of TSVM and TMKM we welcome new shareholders to the Company and look forward to developing the benefits that come from the simplified ownership structure over the 72,000 acres of drilling rights in the Calima Lands,” Calima managing director Alan Stein said.
“Our plans for drilling late in 2018 remain on track and we are excited by continued drilling successes in the Montney near the Calima Lands and the overall improved outlook for infrastructure across the whole play, which we believe will have a positive impact on valuations,” he said.
The company believes its enlarged exposure to the Montney, combined with a bigger market capitalisation will likely provide improved access to capital to fund the forward work program.
A maiden well test is expected later this year with the Calima lands close to existing infrastructure, including pipelines and processing facilities.