Calima Energy Limited (ASX: $CE1) Quarterly Activities & Cash Flow Report

Calima Energy Limited (ASX: $CE1) has successfully completed the cash sale of Blackspur Oil Corp to Astara Energy Corp, receiving net cash proceeds of approximately A$81.1 million. The company is set to seek approval from shareholders for a capital return of up to $80 million, equivalent to 12.64 cents per share, with the anticipation of retaining approximately A$5-6 million in cash post distribution. Additionally, Calima holds a 100% interest in the Paradise Field in British Columbia, generating around A$350,000 in free cash flow annually.

Executive Commentary on Recent Developments

The Company's Executive Chairman, Glenn Whiddon, expressed satisfaction with the successful completion of the sale of Blackspur Oil Corp, highlighting the significant net cash proceeds received. He further emphasized the commitment to delivering value to shareholders through the proposed capital return, subject to approval. The Finance Director, Mark Freeman, reiterated the company's dedication to maintaining a strong financial position post distribution, while also recognizing the ongoing cash flow generation from the Paradise Field.

Summary of Quarterly Report and Future Outlook

Calima Energy's completion of the $81.1 million cash sale of Blackspur Oil Corp marks a significant milestone, positioning the company to seek approval for a substantial capital return to shareholders. The anticipated retention of approximately A$5-6 million in cash, along with the 100% interest in the Paradise Field generating annual free cash flow, reflects the company's strategic focus on maintaining financial strength and delivering value. Looking ahead, Calima Energy remains committed to responsible corporate practices and adhering to strong ESG principles, while actively pursuing opportunities to enhance shareholder returns and drive sustainable growth.