Laricina Energy has announced it intends to raise between $250m and $400m by selling common shares at $40 to $45 each in a private placement. Canada Pension Plan acquired 17% of the privately-held oil sands developer for $250m last year.
Laricina was started by executives of Deer Creek Energy after it was sold to French oil giant Total in 2005 for $1.67bn. This round of fund raising is expected to push back a public listing of Laricina to 2012.
Last month, Laricina reported that its steam-assisted gravity drainage pilot project at Saleski, the first commercial attempt to tap the massive Grosmont oilsands formation, had been performing more efficiently than existing in situ thermal operations. It said it is selling produced bitumen in the market.
“It may not be well known outside Calgary just yet, but Laricina Energy Ltd. is turning into the next big oil sands player as its valuation approaches $3-billion.”
Image of drilling at Laricina’s Saleski pilot project is courtesy of the company.