Calima Energy has agreed to acquire 100% of the issued share capital of Blackspur Oil, a privately held Canadian company with producing oil and natural gas assets in two core areas within Alberta at the Brooks and Thorsby production areas.
Blackspur’s operations include two assets with 2P reserves of 22.5 MMboe, 1P reserves of 16.7 MMboe, and PDP reserves of 5.4 MMboe. Fourth-quarter 2020 production averaged 2,600 boe/d (70% oil). Production is expected to grow to 5,500 boe/d by drilling 24 PUD wells by yearend 2022.
Brooks asset averaged 1,860 boe/d in fourth quarter 2020. Production comes from Sunburst and Glauconitic formations. Blackspur has 94% working interest and has drilled 48 wells to date. A recently initiated waterflood in the Countess J2J Pool is expected to show results in the near term.
Thorsby will be developed through a network of multipads. It averaged about 740 boe/d in fourth-quarter 2020. Blackspur has 100% interest and has drilled 11 wells to date. Thorsby has a large inventory of wells to drill with 89 Sparky formation and 12 Nisku formation wells identified, which includes 28 Sparky proven undeveloped (PUD) locations. Potential upside exists in 66 net sections of Duvernay formation lands included in the deal.
The deal is valued at $60,000,000 (Can.) inclusive of $43,000,000 (Can.) debt plus working capital adjustments and includes all assets, reserves, and production. Calima and Blackspur will combine management teams in Canada, with Blackspur’s Jordan Kevol leading the combine as chief executive officer and director.
Base consideration payable to Blackspur shareholders is $17 million (Can). Closing is expected late April, pending shareholder and regulatory approvals and other conditions.