Alberta’s Oilfield is about to get a $10 Billion Kickstart

in Other News by

Oil prices are expected to rise in early 2017 and the biggest private equity firm in Calgary said they will invest in small energy companies to take advantage of decent prices due to slumping oil prices. 

Co-CEO Lauchlan Currie of ARC Financial Corp. said they’ve invested in over 180 energy companies over the past twenty years and will continue to invest.

“We are backing a number of early stage private companies that are out looking for acquisitions,” Currie said.

“We just see it as one of the best opportunities in a long time because we’re anticipating a recovery probably into 2017. And we’re capturing high-quality assets that you’re just not normally going to get access to.”

Bruce Edgelow, vice-president of strategic initiatives for ATB Financial said companies have had problems agreeing with buy and sell prices, but he said investors are willing to spend their money in  Western Canada oil and gas. 

“We think the number is very conservatively $10 billion Cdn that is available to do the transactions,” he said.

“The capital has been there almost since this downturn started but we have not seen the deployment of it quite yet because the gateposts are fairly wide between the buyers and the sellers.”

With Alberta’s oil and gas sector not receiving help from the anti-oil liberal government, private companies will always be here for Albera and Western Canada, it only makes sense for private companies to invest now when prices are low. 

Share and comment your thoughts. 

Some reports from CTV