Apparently unshaken by the controversy that's erupted over its 2013 purchase of farmland in Saskatchewan, the Canada Pension Plan is indirectly investing in the province's oilpatch at a time when assets there are beset by low prices.
The CPP Investment Board (CPPIB) is a major investor in Calgary-based TORC Oil Gas Ltd., which said Monday it's spending $430 million to buy some light oil-producing assets in southeast Saskatchewan and Manitoba from Surge Energy Inc.
TORC said it paid for the assets in part through an equity sale to the CPPIB, already an investor in TORC. The deal covers production of 4,750 barrels of oil equivalent a day, plus ownership of freehold mineral title on more than 80 net sections of land in southeast Saskatchewan.
TORC, which said CPPIB is putting up about $150 million and other investors $250 million, added the acquisition will boost its reserves, production and cash flow.
The company acknowledged "the volatility of commodity prices," but said it will carefully watch its capital spending plans.
CPPIB made news in Saskatchewan in 2013 when it bought 115,000 acres of farmland for $128 million from Assiniboia Farmland LP.
Source : LeaderPost