Calima to sell subsidiary for $83m

West Leederville-based oil and gas junior Calima Energy is set to sell its Canadian subsidiary to Astara Energy for a cash consideration of $83.3 million.

Calima Energy today advised the market that it has entered into a binding agreement with Canadian company Astara to sell 100 per cent of its ownership in Canadian subsidiary Blackspur Oil Corp.

Blackspur owns Calima’s Brooks and Thorsby production assets in Alberta, Canada.

The sale will be for a cash consideration of $CAD75 million, roughly equivalent to $A83.3 million, according to Calima’s ASX announcement.

Calima announced the company aimed to distribute no less than 85 per cent of the funds from the Blackspur sale to Calima shareholders in the most tax effective form.

“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,” Calima chair Glenn Whiddon said.

“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.”

Calima said, in its ASX statement, that the Blackspur sale would close 10 days after the extraordinary general meeting scheduled on February 15 or no later than March 30.

Astara has also provided $CAD5 million escrow deposit for the Blackspur sale.

The Blackspur sale announcement follows Calima's sale of its Montney licences and Tommy Lakes facilities in August 2023.

The company sold the assets to Canadian oil and gas company Advantage Energy for $11.8 million, citing cost pressures.

Calima shares were trading at 10 cents each, up 56.92 per cent as at 1.04pm AEDT today.