Calima Energy encouraged by recent oil & gas developments in Canada as it pushes towards production

Calima Energy Ltd (ASX:CE1) (OTCMKTS:RLTOF) (FRA:R1Y) is encouraged by recent developments in Canada's oil & gas sector as it remains focused on bringing its highly prospective property in the rich Montney Formation in Northeast British Columbia, Canada, to production. The company is keeping an eye on an all-share deal (C$8.1 billion) between Arc Resources and Seven Generation announced on February 10 which would make them the premier Montney producer of low-cost natural gas and high margin condensate. Calima believes this move will make the combined entity the sixth-largest E&P in Canada and one of the strongest ESG focused producers in Canada as this is a merger of liquids and gas-rich players in the Montney (Calima has both) and builds into the storyline that the company has been expressing for some time. It is the first major Montney M&A in 2021 after an incredible year of Montney players combining more than $1 billion in transactions in 2020 that saw Tourmaline Oil Corp, Canadian Natural Resource and ConocoPhillips emerge as larger Montney players. Monitoring infrastructure projects  Calima has been monitoring the many infrastructure projects in Canada and the value they will bring to the basin. Brookfield Infrastructure has announced an unsolicited takeover bid of Inter Pipeline Ltd for C$7.1 billion, after acquiring C$4.3 billion in assets from Enbridge in 2018. Brookfield is looking to acquire new pipes in the ground and under construction.  The Inter Pipeline Ltd assets also include the under-construction Heartland Petrochemical Complex, which would be a nice value chain link for all of that Montney gas they are already processing. Stronger prices Adding to the company's optimism and enthusiasm is the fact that the Spot price for AECO gas closed the day on February 10 at more than C$5/mmbtu. In a newsletter, it said: "Whilst us Canadians are enduring overnight temperatures deep into minus 30 degrees Celsius, it’s a small price for our fingers to pay to see the revenues that Canadian producers are realising for their immensely vital product." The company concluded: "While Calima has delivered successful wells and acquired the necessary puzzle pieces to make the Montney development-ready, the timing was a bit early. "As we look forward into 2021, we see the light peering at the end of the tunnel and will continue to push forward on creating a strategy that will see this world-class asset come into production, providing the energy necessary to fuel the growing global demand for responsibly produced oil and gas."