Bloomberg News

Fairborne Increases on Sale Consideration: Calgary Mover

March 15, 2012

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 jvanloon@bloomberg.net.

To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net


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