- Calima Energy (CE1) has entered a trading halt while it plans a capital raise
- The oil and gas explorer is yet to disclose how much it expects to raise nor how it will spend the money
- Calima began a drilling program last month at the Brooks area in Alberta, Canada and the wells are expected to commence production before the end of the March quarter
- Upon the commencement of the program, company CEO and President Jordan Kevol said Calima was reviewing its budget and operating schedule for 2022 ensuring strong capital management
- CE1 last traded at 23 cents on February 4
Calima Energy (CE1) has entered a trading halt while it plans a capital raise.
The company hasn’t disclosed how much it expects to raise nor how it will spend the funds once received.
These details should be released by the time the energy stock expects to come out of the trading halt on Wednesday, February 9.
Calima Energy is focused on exploration and development of oil and natural gas assets in the Western Canadian Sedimentary Basin. The company is currently developing its oil plays in Alberta where it recently announced it produced an average of 4300 barrels of oil equivalent per day from its operations over the month of January.
At the start of the year, the company began its 2022 oil and gas drilling program in the Brooks area, which involved the fracture stimulation of two Pisces wells at Brooks and the drilling of an additional well.
The wells would then be tied-in to existing infrastructure and facilities, and production is expected to begin by the end of the current quarter.
At the end of last year, Calima had $3.36 million in cash and unused finance facilities totalling $1.7 million. The January program was reportedly funded from operational cash flows and a credit facility.
However, when commenting on its plan for active exploration, Calima Energy CEO and President Jordan Kevol said it was “currently reviewing its budget and operating schedule for 2022 ensuring strong capital management and while leveraging from higher energy prices.”
CE1 last traded at 23 cents on February 4.