Black Swan Energy Ltd, a privately held exploration and production company, said on July 6 it completed its planned C$200 million (US$158 million) acquisition of Carmel Bay Exploration, boosting its land position in the highly sought after Montney region in British Columbia, Reuters said that day.
Black Swan, backed by the Canada Pension Plan Investment Board (CPPIB) and private equity firms KERN and Warburg Pincus, said in tandem with the closing it raised C$350 million in funds from existing investors. The latest infusion lifts the total capital commitment from its shareholders to $850 million.
The slump in oil prices has spurred private equity firms and pension funds around the world to scout for assets on the cheap in the energy sector. Both CPPIB and its smaller Canadian rival, the Ontario Teachers' Pension Plan, have outlined their ambitions in the area, as have a slew of private equity firms.
Last week, Cenovus Energy Inc, Canada's second-largest independent oil producer, agreed to sell a portfolio of oil and gas royalty properties to Teachers' for roughly C$3.3 billion.
Calgary-based Black Swan, which is run by former Talisman Energy executives David Maddison and Marc Mereau, said it ended 2014 with roughly 6,100 barrels of oil equivalent per day (boe/d) in output, up from about 920 boe/d, a year earlier.
Recommended Reading
US Threatens to Not Renew Venezuelan Energy Sector License
2024-01-31 - The U.S. Department of State alerted Venezuela that it could decide not to renew General License No. 44 amid what Washington has labeled “anti-democratic actions.”
US Companies Ponder Future in Venezuela as Washington Pressures Maduro on Elections
2024-01-26 - The pressure is on again for Venezuela’s President Nicolás Maduro to announce a clear election timeline amid tensions following recent arrest orders and detentions of his opposition supporters.
US Orders Most Companies to Wind Down Operations in Venezuela by May
2024-04-17 - The U.S. Office of Foreign Assets Control issued a new license related to Venezuela that gives companies until the end of May to wind down operations following a lack of progress on national elections.
US Decision on Venezuelan License to Dictate Production Flow
2024-04-05 - The outlook for Venezuela’s oil industry appears uncertain, Rystad Energy said April 4 in a research report, as a license issued by the U.S. Office of Assets Control (OFAC) is set to expire on April 18.