Petro-Canada plans share buy back

Don Whiteley

Petroleum News contributing writer

Flush with cash from soaring oil and gas prices, Petro-Canada hopes to buy back up to 21-million common shares at a cost of about $1.23 billion. The move follows hard on the heels of nearly $2 billion worth of acquisitions made in the last month by the Canadian oil company. “The share buyback will enable the company to optimize its financial structure and is consistent with the company’s strategy of creating value for shareholders,” the Calgary-based oil and gas company said in a statement. Canada’s federal government still owns about 19 percent of the former Crown corporation, but has indicated it would like to sell the stake within the next 12 months. The 21 million shares to be bought back represent about 10 percent of the public float.

Within the last six weeks, Petro-Canada announced a $719 million takeover of Denver-based Prima Energy Corp, and a $1.15-billion purchase of a 29.9 percent interest in the North Sea’s Buzzard oil field.