The market remains slow, despite a window for capital markets
that opened in late May and generally closed late in June.
There were eight public deals in Q2, three of which Stikeman
Elliott acted on, putting the market on track for 32 deals in 2015,
barely exceeding the anemic levels of 2014, assuming that the
weakness in activity in Q1 is made up in the second half of the
year. Q3 has not given us a great start. It is fair to say that the
big transactions were split between two kinds – low cost of
capital leveraging its advantage (Crescent Point, Tourmaline, TORC)
and high cost of capital issues being resolved (Arcan, Niska) or
ameliorated (Cenovus). There was decent midstream activity, but not
as much as was expected, and almost nothing at all in services,
where it is not clear that anyone has a clear cost advantage when
it comes to capital.
Ontario Teachers completed the largest transaction of the
quarter, and perhaps the year, with its purchase from Cenovus,
perhaps reflecting both a means of strengthening its balance sheet
and avoiding what may have been a weak capital markets reception
for additional E&P offerings, even with yield. The sector
welcomes the addition of a sophisticated investor at a time when
confidence is not high. Capital markets activity in this period was
heavily biased to elite names.
The Pacific was relatively quiet in this period, with Sinoenergy
completing the only direct transaction by an offshore purchaser.
Despite, or perhaps because of, the turmoil in commodity and
currency pricing, US buyers were somewhat inactive, limiting their
material activity to participation in widely-marketed Canadian
financings and the sale of Carmel Bay to Black Swan and Niska to
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Canada is a constitutional monarchy, a parliamentary democracy and a federation comprised of ten provinces and three territories. Canada's judiciary is independent of the legislative and executive branches of Government.
In Bank of Montreal v Bumper Development Corporation Ltd, 2016 ABQB 363, the Alberta Court of Queen's Bench enforced the "immediate replacement" provision in the Canadian Association of Petroleum Landmen 2007 Operating Procedure...
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