Fairborne Energy Ltd. (FEL), the Calgary- based oil and natural-gas developer with projects in three Canadian provinces, rose the most in five months after saying it’s considering a sale or merger.
Fairborne increased 12 percent to C$2.60 at the close in Toronto, the biggest climb since Oct. 11. The company has a market value of C$266.7 million ($268.8 million).
The company’s board is evaluating “strategic alternatives” that include a sale, merger or recapitalization, according to a statement today. A special committee of the board will oversee the process and retain a financial adviser, and no schedule has been set, the company said.
Fairborne has gas and oil assets in Alberta, Saskatchewan and Manitoba as well as about C$550 million in tax pools, the company said today. The oil producer is also developing projects to capture and store carbon dioxide.
To contact the reporter on this story: Jeremy van Loon in Calgary at firstname.lastname@example.org.
To contact the editor responsible for this story: Susan Warren at email@example.com