CALIMA ENERGY - Positive Outlook, page-190

Im quite certain the short term fluctuations in oil prices do not negatively influence long term financial investment into oil & gas assets.
For example, BP will not alter its future investments just because the oil price took a dip. These companies consider long term prices in their investment decisions, not short term fluctuations. An oil & gas company does not stop investing in the sector due to short term fluctuations in oil prices. A potential buyer putting up an offer to purchase CE1 assets is just as likely today, if not more likely.

Also, regarding the capital return in January, CE1 did not condition that capital return on strong oil prices. In fact CE1 hedged against lower oil prices recently, showing that they have a full awareness of potential short term fluctuations in oil prices.

Besides, with the USA is buying up oil at a huge rate (3 million barrel purchase announced yesterday), which makes it likely that the oil price will rebound quite quickly.



Plenty of good news on surrounding CE1:

• Potential announcement on the sale of Brooks or Thorsby assets ($80 million dollars for the sale indicated as minimum acceptable).
• Recent increase in CE1 oil & gas production to over 4100 BOE per day (production rate still does not include all recently drilled wells - Pisces12 well).
• Update on the finalisation of current drilling program i.e. Pisces 12 well (with new updated on production rate).
• ~$17.3 million held in cash, with no debt (pre October capital return).
• ~$100 million dollars in revenue per annum.
• ~60% Gross Profit margin (if i remember correctly.?).
• Recent significant reduction in capital spend whilst maintaining production rates (~28% reduction in capital spend compared to last year).
• Potential second capital return in January 2024 (only a few weeks away now).
• The announcement confirming the schedule of works for the new drilling campaign due in 2024 (due to be announced anytime now, and which will also increases current production beyond 4100 BOE per day).
• Further announcements confirming the completion of recent upgrades to the transport and storage pipelines/tanks (which can further increase production capacity).
• The list goes on.......

- CE1 current market cap is ~$45 million dollars (significantly undervalued IMO.!).