Record year for Canadian O&G financings
Gary Park
Equity and energy trust financings propelled Canadian oil and gas industry financings to a record C$16.4 billion in 2005, edging out the previous high of C$15.9 billion in 2004, according to Sayer Energy Advisors.
The equity sector made a strong showing to reach a total C$7.2 billion, beating the previous record of C$5 billion, led by fund raising among junior E&P companies.
Two oil sands players led the way — with Synenco Energy raising C$382 million for its project being developed in partnership with Sinopec, while OPTI Canada raised C$215.2 million from two equity issues to support its Long Lake joint venture with Nexen.
Trident Exploration, which focuses on coalbed methane discovery and development, posted the largest single equity issue at C$280 million.
The total number of equity issues climbed 12 percent from 2004 to 721, Sayer said. Trust unit issues increased to C$4.5 billion from 2004’s C$3.8 billion. The addition of convertible debt and straight debt issues pushed the trust total to C$5.7 billion, or 35 percent of all industry financings.
Leading trust issuers are StarPoint Energy Trust at C$631 million, Enerplus Resources Fund at C$492 million and Provident Energy Trust at C$376 million. StarPoint acquired APF Energy Trust and later merged with Acclaim Energy Trust to form Canetic Resources Trust.
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