In yet another blow for the Calgary oil patch, Pengrowth Energy Corp. has been sold for pennies a share..The debt-ridden oil and gas producer has announced a deal where they will be bought by Cona Resources Ltd. for five cents per share, at total of $702-million..The move comes days after Calgary-based EnCana announced they were moving their headquarter to B.C. and two weeks after Husky laid off hundreds of workers..Stocks in Calgary-based Pengrowth – which had a ten-year high in 2011 of $13.85 – were trading Tuesday at just five cents, 75% lower than the day before it was sold..Pengrowth CEO Pete Sametz said in a statement the company’s inability to raise capital to fund its ongoing heavy oil business led to the initiation of a strategic review process last spring..He said the sale of the company was “the best outcome after it failed in the face of lacklustre oil pricing and increased political and regulatory uncertainty” to restructure its debt, listed at $702 million as of June 30..“Despite the discount this transaction represents to Pengrowth’s recent trading price, we strongly recommend our stakeholders support the (agreement) as it represents the most attractive alternative for all stakeholders given the current environment where there is essentially no access to capital for the Company or participants in the Canadian oil and gas industry, in general.” he said..Pengrowth was first founded 30 years ago by Jim Kinnear and at one point had naming rights to the Saddledome..Pengrowth’s chairman Kel Johnston said a number of factors contributed to the company’s woes..“The extreme volatility in the price of Western Canadian oil in the fall of 2018, coupled with an uncertain political and regulatory environment, has led to a severe funding crisis in the Canadian energy capital markets which impeded the company’s ability to achieve a funding solution,” Johnston said in a statement..The 90-employee company operates two facilities – at Lindbergh in the Alberta oildsands and a natural gas play at Groundbirch in northeast B.C..The deal requires Cona stockholders’ approval at a meeting next month and Pengrowth shareholders on Dec. 18..
In yet another blow for the Calgary oil patch, Pengrowth Energy Corp. has been sold for pennies a share..The debt-ridden oil and gas producer has announced a deal where they will be bought by Cona Resources Ltd. for five cents per share, at total of $702-million..The move comes days after Calgary-based EnCana announced they were moving their headquarter to B.C. and two weeks after Husky laid off hundreds of workers..Stocks in Calgary-based Pengrowth – which had a ten-year high in 2011 of $13.85 – were trading Tuesday at just five cents, 75% lower than the day before it was sold..Pengrowth CEO Pete Sametz said in a statement the company’s inability to raise capital to fund its ongoing heavy oil business led to the initiation of a strategic review process last spring..He said the sale of the company was “the best outcome after it failed in the face of lacklustre oil pricing and increased political and regulatory uncertainty” to restructure its debt, listed at $702 million as of June 30..“Despite the discount this transaction represents to Pengrowth’s recent trading price, we strongly recommend our stakeholders support the (agreement) as it represents the most attractive alternative for all stakeholders given the current environment where there is essentially no access to capital for the Company or participants in the Canadian oil and gas industry, in general.” he said..Pengrowth was first founded 30 years ago by Jim Kinnear and at one point had naming rights to the Saddledome..Pengrowth’s chairman Kel Johnston said a number of factors contributed to the company’s woes..“The extreme volatility in the price of Western Canadian oil in the fall of 2018, coupled with an uncertain political and regulatory environment, has led to a severe funding crisis in the Canadian energy capital markets which impeded the company’s ability to achieve a funding solution,” Johnston said in a statement..The 90-employee company operates two facilities – at Lindbergh in the Alberta oildsands and a natural gas play at Groundbirch in northeast B.C..The deal requires Cona stockholders’ approval at a meeting next month and Pengrowth shareholders on Dec. 18..
