Calima Energy sells Tommy Lakes, Montney acreage for $10 million

FORT ST. JOHN, B.C. — Advantage Energy purchased assets in Montney for $10 million from Calima Energy last week.

The assets include 33,643 acres of Montney licenses, acreage, and the Tommy Lakes facilities.

Calima Energy said the gas price in northeastern B.C. reduces the financing and equity opportunities for the assets near Montney. 

The company estimated the cost of a work program to generate acceptable returns from the assets to be between $50 to $100 million, which led to the sale.

“For some time, the company’s share price has not reflected the value of the Montney assets,” said present and CEO Karl DeMong.

“While these assets presented significant future value, the substantial cost of maintaining the existing facilities, building new infrastructure, volatile gas price in northeast B.C. and limited hedging opportunities has made it very challenging for a small junior to finance the development without substantial equity and project dilution.”

Calima Energy said it will continue to focus on its Brooks and Thorsby assets in Alberta. The company’s production for 2023 is expected to reach approximately 4,000 barrels of oil equivalent per day.