This is gonna be BIG for the Deep Basin!
https://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/seven-generations-energy-plans-1-billion-ipo/article20358874/
Seven Generations Energy plans $1-billion IPO
Seven Generations Energy Ltd., which has been making big oil and gas production gains in a region known as the Alberta Montney, is said to be planning an initial public offering in the next eight weeks that could be worth up to $1-billion, according to sources familiar with the situation.
Seven Generations, seen as a juicy IPO candidate for much of this year, is said to have retained Peters & Co. Ltd. and RBC Dominion Securities to lead the offering, according to the sources. The two banks have done other financings for the company, including a $625-million secondary issue of shares by some of its major institutional investors last March.
Although privately held, the company has already created a name for itself in the oil patch for success with horizontal drilling techniques on a land spread that is yielding impressive volumes of high-value liquids-rich gas and light oil. Its Kakwa River project is located about 100 kilometres south of Grande Prairie, Alta.
An IPO in the estimated price range would make it the second-largest public float this year, following that of PrairieSky Royalty Ltd. by Encana Corp. Encana garnered proceeds of $1.7-billion, making it Canada’s richest IPO since 2000. It was not immediately known how much of the offering would be from treasury and how much in the form of a secondary sale from major investors.
The energy industry has been fertile ground for initial stock offerings since late last year, with four done to date. Word of a Seven Generations deal comes as another company, Teine Energy Ltd., plots an IPO, reportedly for the end of October.
Seven Generations has a stakeholders’ meeting scheduled for Monday in Calgary, during which it will propose a two-for-one stock split and discuss the preparation of a prospectus, the sources said. Its major institutional investors include CPP Investment Board, ARC Financial Corp., KERN Partners, Natural Gas Partners and ZBI Ventures.
The company’s shares last traded on the grey market at $42 a couple weeks ago, according to Liquidity Source.
Seven Generations chief executive Pat Carlson was at the company’s Grande Prairie operation on Thursday and not available for comment, according to an assistant.
Officials at Peters and RBC did not respond to requests to comment late Thursday.
On Wednesday, Seven Generations reported its production in the second quarter nearly quadrupled from the same period a year ago to a company-record 24,000 barrels of oil equivalent a day.
Net income surged to $44-million, or 41 cents a share, from a year-earlier loss of $8.5-million, or 10 cents a share. Proved plus probable reserves climbed 129 per cent to 641-million barrels of oil equivalent. During the quarter it completed nine wells and brought seven of them onto production.