CANADIAN OILPATCH/COMPANY TO WATCH
TETHYS ENERGY CORP.
Let me first say, Tethys is not a publicly traded company. However, it won't be too long a period before an initial public offering is planned.
The consolidation seen in the Canadian Oilpatch isn't scaring off veterans in the industry from launching their own junior companies. A case in mind is Randall Pardy, former vice-president of developement for Northstar Energy Corp.
Within weeks, Pardy managed to raise $4.5 million in a private placement of shares bought up by a celebrity list of investors at $0.80 each. He then turned around and helped engineered a reverse takeover of Lorrac Energy Ltd. Lorrac will make a takeover bid to all the shareholders of Tethys on the basis of one Lorrac common share for each 1.075 common share of Tethys.
The combined company will have 13 million shares outstanding and $4 million in cash. Daily production is currently 23 million cubic feet of natural gas and 185 barrels of oil and natural gas liquids.
If the takeover bid is successful (it is subject to shareholder and regulatory approval), Lorrac will change its name to Tethys Energy Inc. and Pardy will act as president and chief executive officer.
A who's who of Calgary's energy industry is betting Tethys will be successful, according to documents filed with the Alberta Securities Commission. Jim Buckee, president of Talisman Energy, kicked in $50,000, Susan Buckee added another $50,000, Newcrest Capital's Lee Pettigrew and Bob Price each put up $100,000, Scott Inglis of First Energy put up $40,000 and Financial houses like Peters & Co and Nesbitt Burns snapped up large chunks. "I've been in the oilpatch for quite awhile, and I know them all," said Pardy, explaining his good fortune in raising the money.
If you're an Alberta resident, be on the lookout for this IPO. If you are a non-resident, this may be a good company to acquire shares in at an early stage of trading.
As a follow up to the above and for contact information, go to; newswire.ca .
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