Painted Pony Petroleum timed the market perfectly with a new bought deal Friday morning, which comes just a few weeks after the company reported a stellar operational update.
With enough attention around the name, Painted Pony was able to raise $80-million after upsizing the deal from an initial size of $72-million. The offering came at $10.50 a share, a discount of 3.7 per cent off Thursday’s closing price. Proceeds will be used for capital spending, which the company recently estimated at $95-million for 2011.
For those who don’t know the name well, Painted Pony is a junior exploration oil and gas player with oil assets in southeast Saskatchewan’s Bakken region and natural gas assets in northeast British Columbia. The company’s recent operational update offered exceptional B.C. test rates that will eventually help to ramp up production that hit 3,950 boe/d in December. The Bakken exploration also has new infrastructure to recognize natural gas and associated liquids conservation.
Around the same time that the operational update came out, Crescent Point Energy Corp. sold about 5.8 million Painted Pony shares for $60-million or so. The sale representeed 11.5% of the company's oustanding Class A Shares.
Painted Pony is a top research pick of both Cormark Securities and FirstEnergy Capital, which is probably part of the reason why they were awarded the titles of co-lead managers.Report Typo/Error