Canbriam Establishes New Exploration and Production Venture
Canbriam Energy, Inc. announced that it entered into an equity financing arrangement of up to US$300 million from company management, Warburg Pincus, and ARC Financial Corp. to pursue the acquisition, exploration and development of oil and gas interests in certain onshore regions of Canada and the United States.
Canbriam Energy will explore for and develop oil and gas resources in selected hydrocarbon basins in North America. Initially, Canbriam Energy will concentrate on unconventional oil and gas opportunities in Western Alberta and Eastern British Columbia. Over time, the company will draw on the previous experience of its management team to target other unconventional opportunities where it believes significant value can be created through advanced drilling and production technologies.
President and Chief Executive Officer Paul Myers, the former CEO of Esprit Energy Trust, said: "We are delighted to be partnering with Warburg Pincus and ARC Financial, two leaders in private equity investing in the energy sector. With Warburg Pincus and ARC's financial backing and expertise, I am confident that our management team is in the best possible position to create and realize value."
Mr. Myers is joined by Chief Financial Officer Stephen Soules, who previously served as CFO of Esprit and of Canadian Hunter. The executive team is complemented by strong managers in the areas of geology and geophysics, land and engineering.
Commenting on the investment, Peter R. Kagan, a Warburg Pincus Managing Director, said: "Led by a senior management team with extensive technical experience in all of its targeted areas, Canbriam Energy has the operational capability and financial foundation to pursue multiple exploration and development projects simultaneously and to succeed in the competitive environment of onshore unconventional oil and gas exploration in North America." Nancy L. Smith, Managing Director at ARC Financial, added: "This investment follows our firms' practice of backing strong management teams to build companies of meaningful scale."