Canada has financings record in sights

Canadian industry financing surpassed a 10-year high in the first half of 2005, totaling C$7.5 billion, edging out last year’s figure by C$300 million, raising the prospects of beating last year’s 12-month tally of C$15.8 billion, according to Calgary-based Sayer Securities. Equity financings made the biggest single contribution at C$3.2 billion, 22 percent ahead of a year earlier, with the heaviest emphasis on issues tied to coalbed methane, oil sands, heavy oil and international operations.

Coalbed methane operator Trident Exploration completed the largest equity deal at C$280 million, followed by oil companies OPTI Canada at C$185 million, BlackRock Ventures at C$123.8 million and Deer Creek Energy at C$40.8 million.

Financings for activities outside Canada were led by First Calgary Petroleums at C$137 million, Niko Resources at C$102 million, then three little-known companies, Oilexco at C$68.8 million, Arawak Energy at C$58.8 million and Centurion Energy International at C$49.7 million. Junior E&Ps also posted successes, with Highpine Oil and Gas raising C$72 million, and ExAlta Energy C$27 million, while privately held Duvernay Oil issued C$40.8 million of flow-through equity.

Flow through equity generated C$253.8 million, beating the same period last year by 6 percent, Sayer reported.

Debt issues accounted for C$2.3 billion, off 21 percent from last year, including C$1.76 billion in straight debt and C$530 million in convertible debt for royalty trusts.

Trust financings topped C$2 billion, C$300 million ahead of 2004.

—Gary Park