Apparently investors still like oil and gas.
You would think that while equity markets take their tumble, financings would be hard to come by. Not so for oil and gas companies. In the past week or do, the deals have kept coming.
The latest of these was Pinecrest Energy's offering of common shares on Wednesday. Not only did the $40-million deal get done, it was also upsized to $60-million.
That deal came on the back of Bonavista Energy Corp.'s $200-million offering and Cequence Energy's $50-million financing late last week. On top of these, Sterling Resources raised $45-million a few days earlier -- a financing that was a bit surprising considering the company's stock has plummetted spectacularly this year.
No one's saying these deals are indicative of resounding demand for oil and gas, because they have been only four of them. But they definitely show that investors still see at least some potential in the space even though the broader S&P/TSX Composite Index has fallen about 6 per cent in the course of just over one week.
Tim Kiladze