Bowing to pressure from a Calgary-based activist energy fund, TriOil Resources Ltd. has launched a strategic review, spurring speculation that a sale could emerge.
With a market value of just $211-million, TriOil isn't a major name in the Canadian landscape, but it's attracted a boat load of attention in Western Canada lately.
In January PetroBakken Energy Ltd. said it acquired a 17-per-cent stake and AGF Investments' ownership just climbed north of 10 per cent. But more importantly, activist fund Andylan Capital Strategies just scooped up 5 per cent of its shares and asked for a strategic review.
As we all know, strategic review is often code for 'looking for a buyer,' and in this scenario, PetroBakken looks like the likely acquirer. However, Don Rawson at AltaCorp. Capital notes that "there is no guarantee that PetroBakken will proceed with a bid any time soon"
Analyst Luc Mageau at Raymond James Ltd. looked at recent oil acquisitions over the past year and believes that a value in the range of $90,000 per barrel of oil equivalent per day is in the range for a TriOil takeover, which equates to something in the range of $3.75 per TriOil share.
TriOil is currently developing assets at Lochend and Kaybob in Alberta.
(Tim Kiladze is a Globe and Mail Capital Markets Reporter.)
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