Calima’s Thorsby operation, Alberta. Source: Calima Energy
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  • Calima Energy (CE1) floats a dividend for later this year on the back of a sturdy increase in energy production and revenue over the three months to the end of March
  • With six new wells in Alberta brought to production over the quarter, Calima posted a 56 per cent increase in quarterly revenue, pocketing $30.9 million in customer receipts
  • Calima says it’s evaluating a dividend or share buyback program for later this year in light of an H2 capital program planned for before the end of June
  • Calima ended the March quarter with $1.5 million in cash and $18.6 million in undrawn debt
  • Shares in Calima Energy last traded 3.33 per cent higher at 15.5 cents

Canadian oil and gas play Calima Energy (CE1) is floating a dividend for later this year on the back of a sturdy increase in energy production and revenue over the three months to the end of March.

Following some key development work over the quarter, Calima now controls 13 producing wells in southern and central Alberta, with another well awaiting production.

Six of these wells were brought to production during the March quarter — three as part of the company’s Pisces glauconitic program and three as part of its Gemini sunburst program.

The result was a 20.9 per cent increase in quarterly production to over 356,000 barrels of oil equivalent (boe) in the March quarter compared to just under 295,000 boe in the December quarter last year.

The production bump translated to a 29 per cent increase in Calima’s volume of oil sold to 249,500 barrels from 193,500 barrels last quarter.

With a higher volume of sales and a strong price environment for energy commodities, Calima posted a 56 per cent increase in quarterly revenue, pocketing $30.9 million in customer receipts from the start of January to the end of March.

Calima reported $18.1 million in quarterly earnings before interest, tax, depreciation and amortisation (EBITDA) — an increase of 92.6 per cent compared to the previous quarter.

Meanwhile, with operating expenses of around $19.8 million, Calima ended the quarter cashflow-positive by $11.1 million.

Calima President and CEO Jordan Kevol said its Gemini 5 well in its Brooks project area was particularly successful, with a step-out vertical well confirming the “significant” potential of the Brooks core.

“Exceeding all expectations, the vertical well is an excellent producer, and follow-up horizontal wells are planned to target that pool,” Mr Kevol said.

“At current robust prices for both oil and gas, Calimais experiencing high returns on all projects and is committed to providing a combination of sustainable production and cashflow growth, coupled with shareholder returns for 2022 and beyond.”

Looking ahead, Calima said it was evaluating a dividend or share buyback program for later this year in light of an H2 capital program planned for before the end of June.

Calima ended the March quarter with $1.5 million in cash and $18.6 million in undrawn debt.

Shares in Calima Energy last traded 3.33 per cent higher at 15.5 cents at 11:35 am on Friday, May 13.

CE1 by the numbers
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