The right zip code

Calima energy limited is an interesting company. guys would like some thoughts but I think this is probably worth a look at.

They have rights to project in Canada in the right neighbourhood . It is a deal to farm in 57% interest for spending $25M ,so far they have spent $4m. There has been significant investment in the region and most of the neighbouring companies are all major produces with over $10bn spent in the region and there has been a lot of M & A activity there too. This is not an exploration play the entire area is rich in hydrocarbons with illustrated amount at 40 BCF( normally there is 55 barrels per million cubic feet of gas). How much oil they have is the question mark. The neighbours in the region include Black Swan energy, Chinook Energy, painted Pony energy , Storm and Sagaro energy.
Calima expects that well drilled on its land will be similar to Saguaro which is a good comparison . Calima could have 200 million barrels of oil is you compare the two companies.

There is 550m shares on issue with currently $3.5M in bank. The company intends to drill in 2018 which should be interesting which will give us an idea of the flow rate. Low cost entry into a tier 1 region, low technical risk and excellent upside. The great thing is Calima is the lastest player so they have learnt all of the lessons from their neighbours who have spent billions in the area and they can effectively achieve results for their shareholders using the proven techniques developed overtime. There is also historical drilling which proves the hydrocarbons are there .