Shares in Petrobank Energy and Resources Ltd. are down 91 per cent in the first trading day since the company completed a major reorganization.
The stock was at $1.14 on the Toronto Stock Exchange on Wednesday, a drop of $11.26.
The company, now referred to as New Petrobank, announced on Monday it had completed the spinoff of its 57 per cent stake in PetroBakken Energy Ltd., a light oil-focused company.
The overhaul, announced in October, will see New Petrobank keep about $100-million in cash and a heavy oil business that includes patented production technology known as Toe to Heel Air Injection, or THAI.
Petrobank shareholders will get stock in New Petrobank as well as a proportionate share of its 57 per cent stake in PetroBakken, which is focused on conventional light oil in the Bakken and Cardium formations.
Petrobank’s shareholders will receive 1.1051 PetroBakken shares for each Petrobank share they have at the time of the conversion.
PetroBakken shares were up 1.4 per cent to $10.39 on the Toronto Stock Exchange on Wednesday.