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Laricina Energy secures $250-million from CPPIB Add to ...

Oil sands player Laricina Energy Ltd. has locked down $250-million from the Canada Pension Plan Investment Board in exchange for 17.1 per cent ownership and the right to nominate someone for election to Laricina's board of directors, as long as CPPIB maintains a 10-per-cent holding.

Laricina also launched a $51-million private placement on the back of the announcement, co-led by Peters & Co. and RBC Dominion Securities, at $30 per common share, the same price at which CPPIB bought in. (CPPIB's 17.1 per cent ownership is prior to this offering.) Peters scored big on the deal, having also advised Laricina on the large investment, while Macquarie advised CPPIB.

The new capital will be used to develop assets such as Laricina's proposed Germain 5,000 barrel per day demonstration project and a second in northern Alberta's Grosmont carbonate deposits.

The investment is another of CPPIB's recent plays in the oil and gas sector. Earlier this year the investment fund put $350-million into Progress Energy Resources Corp. when it bought gas assets in northeast British Columbia from Suncor Energy for $390-million.

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