CALIMA ENERGY LIMITED ersonal use only
FREE CASH FLOW, GROWTH-FOCUSED CANADIAN OIL & GAS PRODUCER
ASX: CE1 OTCQB: CLEMF JULY 2022
CORPORATE SNAPSHOT
Calima is a Returns-Focused Growth Producer with Top Tier Assets, Positive Cash Flow and is ESG Goal Orientated
FINANCIAL INFORMATION
Trading Symbols | ASX: CE1 | Quarterly Production and Adjusted EBTDA Forecast |
OTCQB: CLEMF |
only | Shares Outstanding (basic) | 612 million | EBTDA ($'000) | Daily Prod. (boe/d) | ||||||||||||
22,622 | ||||||||||||||||
Current share price (A$) | 0.16 | 19,282 | ||||||||||||||
17,951 | ||||||||||||||||
Market Cap on Close @ 27 July 2022 | A$98 million | |||||||||||||||
use | ||||||||||||||||
Analyst target range | A$0.50-A$0.75 | 8,158 | 8,909 | |||||||||||||
Half Year Dividend | $2.5 million | 3,446 | ||||||||||||||
3,290 | 3,202 | 3,963 | 3,839 | 4,152 | ||||||||||||
Annual Yield (%) | 5% | 1,982 | ||||||||||||||
Q2 2021 | Q3 2021 | Q4 2021 | Q1 2022 | Q2 2022 | Q3 2022 | |||||||||||
Reserves/Resources (Mmboe)1 | 1P | 2P | 3P | 2C | ||||||||||||
Gross Reserves | 15.6 | 20.4 | 24.4 | 160.5 |
ASX
CE1
18,694
4,283
Q4 2022
ersonal1InSite Reserves Report and McDaniels & Associates Resources Report dated Dec 31, 2021 announced on ASX on 28 March 2022. The Company is not aware of any new information or data that materially affects the information included in the r f renced ASX announcement and confirms that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.
CONVENTIONAL OIL & GAS PRODUCER
focused on responsible development of top-tier assets in Western Canada
• Stable, low decline base production from Brooks and Thorsby provides
onlysignificant growth opportunities - >82 wells on production
• Responsible capital allocation:
use • Q2/Q3 2022 drilling: 4 new wells drilled and 1 additional well frac'd
• YTD Production of 705,461 boe / 3,901 boe/d @ 70% oil
• Estimated production for H2 2022 is 776,087 boe / 4,218 boe/d @ 66% oil
• Liquids rich Montney assets provide upside to domestic gas and global LNG | ||||
ersonal | ||||
markets | ||||
4,200 boe/d (65% Oil) | A$22.6 million | |||
July 2022 Current Production | Q2 2022 Adjusted EBTDA | |||
ASX 3
CE1
CALIMA AT A GLANCE
top tier assets, positive cash flow and is ESG goal orientated
Actual | Actual | Projected | Total | |||
only | Production Sales | Q1 22 | Q2 22 | H2 | 2022 | |
Sales volumes (gross boe) | 356,058 | 349,403 | 776,087 | 1,481,549 | ||
Sales volumes (boe/d) | 3,963 | 3,839 | 4,218 | 4,059 | ||
Liquids percentage | 72% | 67% | 66% | 68% | ||
Financial (A$ million) | ||||||
Sales Revenue | $30.9 | $37.0 | 68.3 | 136.3 | ||
Royalties | (5.6) | (7.1) | (12.9) | (25.7) | ||
use | Operating Costs | (6.3) | (5.4) | (12.3) | (23.9) | |
G&A and Interest | (1.1) | (1.9) | (5.1) | (8.1) | ||
Adjusted EBTDA | 17.9 | 22.6 | 37.9 | 78.6 | ||
Hedge Losses | (5.0) | (8.5) | (5.2) | (18.7) | ||
Cash Flow from Operations | 12.9 | 14.1 | 32.7 | 59.8 | ||
Capital Expenditure | (16.4) | (10.4) | (17.9) | (44.9) | ||
Free Cash Flow | (3.6) | 3.7 | 14.7 | 14.9 | ||
Free Cash Flow without Hedge Losses | 1.4 | 12.2 | 20.0 | 33.6 | ||
Buy Back/Capital Distribution | - | (0.5) | (5.0) | (5.5) | ||
Commodity/FX prices | ||||||
Oil (A$/bbl) | 108.54 | 133.67 | 110.36 | 115.41 | ||
Natural gas (A$/Mcf) | 5.56 | 8.49 | 7.89 | 7.55 | ||
Natural gas liquids (A$/bbl) | 77.27 | 100.12 | 80.12 | 84.65 | ||
ersonal | AUD / CAD | 0.92 | 91.25 | 0.89 | 0.90 | |
1. Calima is funding development from production revenue and periodic drawdowns from the revolving credit facility |
2. Non recuring hedging losses for 2022 are projected at A$19.9 million. All current swap hedges expire by December 31, 2022.
3. Capital expenditure for the H2 2022 includes an additional 2 Sunburst wells and 2 Glauconitic wells, additionally capital costs for 2022 included non-recurring items: a. Brooks 19km Pipeline which cost ~A$4.2 million and b. Additional capital expenditure in Q1 incurred as part of the ramp-up of production.
4. The Company expects sustaining capital expenditure (the amount necessary to maintain production) at $A25-$35 million per annum.
5. Based on production revenue being maintained for the calendar year of 2023 the Company anticipates that Free Cash Flow will be ~$45-50 million after sustaining capital costs are accounted for.
6. Projected Free Cash Flow assumes an average oil price received of A$110.36/bo (equates to US$95 WTI minus differential of ~C$27.77 to WCS) in H2 with average royalty rates of 19%, and operating costs and G&A assumptions based off historical financial performance.
7. Calima has tax losses of ~C$177 million that can be offset against Brooks and Thorsby taxable revenue, accordingly taxes have not been reflected in the above analysis.
ASX 4
CE1 4
MANAGEMENT & BOARD | CE1 | |||||||||
ASX | 5 | |||||||||
Long track record of Western Canadian asset development | ||||||||||
LEADERSHIP | ||||||||||
only | Jordan Kevol | Graham Veale | Mark Freeman | |||||||
Managing Director & CEO | VP Engineering | Finance Director - Australia | ||||||||
• 10 years at Blackspur, 1+ year Calima | • 10 years at Blackspur, 1+ year Calima | • >25 years oil and gas development | ||||||||
• Geology background with 15+ years of | • 25+ years Canadian E&P experience | and corporate finance expertise | ||||||||
public and private Canadian junior E&P | • Grand Gulf Energy, Golden Gate | |||||||||
• Ex Milestone Exploration, Devon Energy, | ||||||||||
experience | ||||||||||
use | Anderson Exploration & Mobil Oil | Petroleum, Quest Petroleum | ||||||||
Jerry Lam | Kevin Saizew | Shaun James | ||||||||
CFO - Canada | Operations Manager - Canada | |||||||||
Business Development - Canada | ||||||||||
• 18 years Canadian E&P experience | • 5 years at Blackspur, 1+ year Calima | |||||||||
• Reservoir Engineer | ||||||||||
• Ex Legacy Oil, Seven Generations | • 11+ years Canadian E&P experience | |||||||||
• 26 years Canadian E&P experience | ||||||||||
Energy and KPMG | • Ex Lightstream Resources, | |||||||||
ersonal | Petrobakken Energy | • Ex Caltec, West Valley Energy, Encana | ||||||||
DIRECTORS | ||||||||||
Glenn Whiddon | Karl DeMong | Lonny Tetley | ||||||||
Chairman | Non-Exec Director | Non-Exec Director | ||||||||
• Commercial >30 years in equity capital markets, | • Commercial and petroleum engineering based in Canada | • Partner at Burnet, Duckworth and Palmer LLP | ||||||||
banking and corporate advisory | > 25 years in domestic and international E&P | • Currently serves on the Board of Certarus, Beyond | ||||||||
• Bank of New York, Grove Energy and various ASX | • Well operations management and technical experience | Energy Services & Accelerate Financial Technologies Inc. | ||||||||
li ted companies | in unconventional and conventional fields |
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Calima Energy Ltd. published this content on 28 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2022 04:37:00 UTC.
