Calima Energy Limited (ASX: $CE1) completes Blackspur sale and plans A$80 million distribution

Calima Energy Limited (ASX: $CE1) has successfully completed the sale of Blackspur Oil Corp. to Astara Energy Corp., resulting in net proceeds of A$81.6 million after Canadian tax provisions and net debt adjustments. The company intends to distribute A$80 million to its shareholders in one tranche, subject to shareholder approval. Calima is seeking an ATO ruling on the return of capital, with the process expected to take 60-90 days. Post distribution, the company will retain approximately A$5-6 million in cash and maintain ongoing production from the Paradise Field in British Columbia.

Executive Commentary on Blackspur Sale and Capital Return

Mr Glenn Whiddon, Chairman of Calima, expressed gratitude to the Blackspur team, Calima management, and Board for their professionalism and support during the sale process. He acknowledged the difficulty in achieving an appropriate valuation on the ASX despite the great work undertaken by the Calima and Blackspur team. The sale to Astara represented an 80% premium to the share price pre-announcement, highlighting the quality of the business. The Board considers it appropriate that these funds are returned to shareholders and is actively seeking an ATO ruling. Following the capital return, and subject to ASX rules, Calima will remain listed and funded, actively seeking opportunities to generate further value for shareholders.

Summary of Calima Energy's Blackspur Sale and Future Plans

Calima Energy Limited (ASX: $CE1) has successfully completed the sale of Blackspur Oil Corp. to Astara Energy Corp., resulting in net proceeds of A$81.6 million. The company intends to distribute A$80 million to its shareholders in one tranche, subject to shareholder approval, and is seeking an ATO ruling on the return of capital. Post distribution, Calima will retain approximately A$5-6 million in cash and maintain ongoing production from the Paradise Field in British Columbia. Despite the current shift by investors away from junior energy companies in Australia, the Board remains committed to actively seeking opportunities to generate further value for shareholders post capital return. Calima has also made submissions to the ASX to extend the timeframe for potential securities suspension and Listing Rule application following the Blackspur Sale. The company's forward-looking statements emphasize the unpredictability of future results and trends, highlighting various factors beyond their control or prediction. Calima does not undertake any obligation to update or revise any forward-looking statements, emphasizing the inherent uncertainties in the industry.