Average daily production during the month was 3,291 barrels of oil equivalent, an increase of 14% or 408 barrels of oil equivalent per day.
This resulted in a 20% increase in revenue, net of royalties, to A$4.9 million, up from A$4.1 million in June.
Other encouraging progress in July came with operating netback increasing 23% to A$2.5 million from A$2 million the previous month while funds flow was up 35% to A$2.2 million from $1.6 million.
Capital expenditure on the Gemini and Thorsby projects in Alberta, Canada, was 36% lower at A$2.7 million during July while net debt was up 5.4% to A$17.2 million as a result of the Gemini and Leo drilling campaigns.
The improved figures in July were supported by a 1% increase in the realised oil price to C$74.17 per barrel and a 13% lift in the realised gas price to C$4.17 per thousand cubic feet.
Calima’s progress during 2021 has prompted Hannam & Partners to increase its risked NAV (Net Asset value) to A$0.0255 per share from A$0.0245 per share, a considerable premium to the current price of A$0.0095.
Hannam analyst Anish Kapadia last month said, Calima is “trading on 2.5x EV/EBITDA or adjusted for the value of the Montney (not generating EBITDA) implied in the share price prior to the Blackspur deal of ~C$25 million, it is trading on <2x EBITDA.
“Furthermore, with significantly higher Canadian gas prices and deal activity in the Montney, the market value of these assets should be significantly higher than C$25 million."
Calima is an Australian listed exploration and production company, focused on Canada, an established energy market with a supportive energy policy.
It has exposure to a large-scale wet gas play in the Montney and - with the completion of its C$61.5 million acquisition of Blackspur on May 3 - low-cost, high-return, oil-weighted assets in Alberta.
The Blackspur acquisition has been integral to Calima’s performance, giving it near-term cash flow and production growth.
This week the company tabled its 2021 oil and gas reserve estimates for its wholly-owned subsidiary Blackspur Oil Corp.
As at June 30, 2021, Blackspur’s reserves stood at:
- Proved, probable and possible (3P) reserves 25.7 million barrels of oil equivalent (boe);
- Proved and probable (2P) reserves 21.4 million boe;
- Proved (1P) reserves 16.1 million boe; and
- Proved developing producing (PDP) reserves 5.2 million boe.
Blackspur’s development plan tees up 64 gross wells for drilling over the next five years, with six of those assets scheduled for drilling over 2021’s second half.