Calima Sells Namibia Stake

Australian Calima Energy has sold its stake in a licence offshore Namibia but retained an interest in the upside, it said May 23. Subject to the two sides reaching full agreement after a 60-day exclusivity period and other conditions being met. including government approval, Tullow Oil will pay Calima $2mn for the stake in licence PEL 90 in block 2813b and the operatorship.  

Tullow will also pay Calima $10mn in the event of a commercial discovery, half due on award of a production licence and half due on commercial production starting.

Calima said it would use the money to further its success in the Montney shale, Canada. CEO Alan Stein said the Namibia play had "extraordinary upside" but it would take a lot of time and money to get there, while Montney offered its shareholders "significant" short-term gains. He said both plays were, or had potential to be, "world-class."