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A pump jack draws oil from the ground near a hydraulic fracturing operation near Bowden, Alta., Tuesday, Feb. 14, 2012.Jeff McIntosh for The Globe and Mail

Teine Energy Ltd., a private company with a big stake in Saskatchewan's hot Viking light oil, is setting its sights on going public by the end of October, say people familiar with the company's planning.

Teine, which is led by Canadian oil patch veteran David Tuer as chief executive, is majority owned by Canada Pension Plan Investment Board and has been seen for the last several months as ripe for an initial public offering as the market has heated up.

Estimates of the value of the deal vary, and would depend upon how much of an interest in the company could be sold in treasury and secondary issues. Meanwhile, valuation estimates of the company itself also vary. One market player pegged a market capitalization of about $500-million, but warned it was a rough number.

The company's equity does not currently trade in the grey market, as is the case with many privately held companies, making their values a little easier to estimate.

Teine's would be the latest in a recent resurgence in energy IPOs, following such names as Journey Energy Inc., Cardinal Energy Ltd. and PrairieSky Royalty Ltd., which was the largest Canada in the last 14 years.

Canadian Imperial Bank of Commerce and Toronto-Dominion Bank are said to be leading the upcoming offering, for which the timetable could still change depending on market conditions, sources said.

Officials with the banks declined to comment. Mr. Tuer, who led PanCanadian Energy Corp. before it merged with Alberta Energy Co. to form Encana Corp. in 2002, was not immediately avilable for comment. Following his departure from PanCanadian, Mr. Tuer led Hawker Resources and was a director at Value Creation Inc.

CPPIB currently owns about 78 per cent of Teine's shares, according to a research report by FirstEnergy Capital Corp. analyst Robert Fitzmartyn.

The company produces about 3,000 barrels of oil equivalent a day from the Viking oil play in southwestern Saskatchewan, a prospect that has created a buzz in the industry. Production could hit 15,000 barrels a day by the end of this year, making Teine the largest Viking oil producer, according to report. It is said to have 2,700 potential drilling locations on its lands.

In another financing, Teine said on Tuesday that it was offering $350-million (U.S.) of senior unsecured notes, proceeds of which would be used to repay other debt.