A few more fish for China.
Junior oil and gas sector shrinks as publicly traded firms sell out to private equity companies
"The kind of plays we're doing now, the capital required for them is so huge," said Brian McLachlan, CEO of junior Yoho Resources.
"You'd have to raise so much money as a tiny company to get in the game and, if you don't have a really great currency, you're just spinning your wheels."
Yoho and two other small public companies — Trilogy Energy and Celtic Exploration — famously pooled resources in 2010 to drill one of the first Alberta Duvernay shale oil and gas wells using horizontal drilling and multi-stage hydraulic fracturing, the technology behind the boom in U.S. oil and gas production.
The productivity of the resulting well drew attention that helped Alberta boost proceeds from the auction of drilling rights to a record $3.5 billion in 2011.
But last fall Yoho departed public markets, selling itself for $31.5 million to private equity firm One Stone Energy Partners of New York.
"We took it private because there wasn't a heck of a lot of support for a public company our size," said McLachlan.
Junior oil and gas sector shrinks as publicly traded firms sell out to private equity companies - Calgary - CBC News
Junior oil and gas sector shrinks as publicly traded firms sell out to private equity companies
"The kind of plays we're doing now, the capital required for them is so huge," said Brian McLachlan, CEO of junior Yoho Resources.
"You'd have to raise so much money as a tiny company to get in the game and, if you don't have a really great currency, you're just spinning your wheels."
Yoho and two other small public companies — Trilogy Energy and Celtic Exploration — famously pooled resources in 2010 to drill one of the first Alberta Duvernay shale oil and gas wells using horizontal drilling and multi-stage hydraulic fracturing, the technology behind the boom in U.S. oil and gas production.
The productivity of the resulting well drew attention that helped Alberta boost proceeds from the auction of drilling rights to a record $3.5 billion in 2011.
But last fall Yoho departed public markets, selling itself for $31.5 million to private equity firm One Stone Energy Partners of New York.
"We took it private because there wasn't a heck of a lot of support for a public company our size," said McLachlan.
Junior oil and gas sector shrinks as publicly traded firms sell out to private equity companies - Calgary - CBC News