Calima has acreage onshore in Canada.

Calima raising $65m for Canada

Friday, 17 August, 2018 - 12:42

Subiaco-based oil and gas junior Calima Energy has raised $25 million through a placement, and aims to pick up a further $40 million through debt to underpin a drilling campaign at its Canadian exploration tenements.

The placement was to sophisticated and professional investors at a price of 5.4 cents per share, a 10.8 per cent discount to the five-day volume-weighted average price of the shares.

The placement was lead by Euroz Securities and Morgans Corporate, with RBC Capital Markets a co-manager.

Sydney-based fund manager Tribeca Investment Partners was the cornerstone investor for the placement, and has also been mandated to raise $40 million in debt.

About half of the raising will need shareholder approval.

Calima’s focus will be drilling in the Montney region of Canada, starting in December 2018.

Three wells will be drilled under the plan, including two that will be horizontally fractured.

Calima managing director Alan Stein said interest in the placement had been significant.

“The next six months are going to be very exciting and we look forward to delivering positive news flow on our drilling campaign scheduled to commence later this year,” he said.

Shares in Calima were down 10.6 per cent to 5.9 cents each.