Source Energy takes in 175 million in largest oil and gas sector

CALGARY – Source Energy Services has closed a $175-million financing in the first substantial initial public offering in the oil and gas sector in two-and-a-half years.The Calgary-based company, one of the largest suppliers of speciality sand to Canada’s fracking industry, issued 16.7 million shares at $10.50 each in the listing.Source had initially aimed to raise about $300 million by offering shares at somewhere between $17 and $20, but shelved the plan because of what it said were adverse capital market conditions.The listing is the first for the oil and gas sector since Seven Generations Energy raised $932 million in Oct. 2014, save for some minor listings of a few million dollars.The Seven Generations listing was the last of a series of high-profile public offerings in the sector, including PrairieSky Royalty’s $1.7-billion listing, before the oil price crash put further IPOs on hold.Source Energy expects to see a significant increase in demand for its product this year as fracking operations ramp up both the amount of sand used per well, and the total number of wells fracked. by The Canadian Press Posted Apr 13, 2017 2:20 pm MDT Last Updated Apr 13, 2017 at 3:20 pm MDT AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email Source Energy takes in $175 million in largest oil and gas sector IPO since 2014 read more