Bloomberg News

Vero Energy Gains on Gas Asset Sale, Financing: Calgary Mover

February 01, 2012

Feb. 1 (Bloomberg) -- Vero Energy Inc., a Canadian company that’s shedding natural-gas properties to search for oil, rose the most in a month after completing its sale of gas fields and getting additional bank financing.

Vero rose 6.9 percent to C$2.95 at the close in Toronto, the biggest gain since Jan. 4 and its highest price since Nov. 10.

Vero will use the C$209 million ($209.5 million) it raised from the sale of gas properties in western Alberta to pay down debt and boost oil drilling activity, the Calgary-based company said in a statement released after markets closed yesterday. The company also reported that it obtained a C$45 million line of credit from the Canadian Imperial Bank of Commerce.

“The team’s attention and technical expertise are now 100 percent focused on developing its Cardium light-oil assets,” Chief Executive Officer Doug Bartole said in the statement.

--Editors: Jasmina Kelemen, Charles Siler

To contact the reporter on this story: Gene Laverty in Calgary at glaverty@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net


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