August 8, 2009

Petrobank on new Bitumen Extraction Proces


Petrobank Energy and Resources looks a bit like an oil and gas holding company. It controls a few oil sands leases and is working on a new bitumen extraction process; it controls 67% of Petrominerales, which operates in Columbia and Peru; and it will soon own 64% of PetroBakken Energy, assuming its merger with TriStar Oil and Gas works out.

But its conglomerate status will not be around forever.


Petrobank plans to chip in its Saskatchewan Bakken holdings as part of the deal to create PetroBakken, which is why it will end up 64% of the new entity. It will receive a tidy dividend of 96 cents per share a year, but John Wright, Petrobank’s chief executive, expects that to change.
Petrobank, he said, will hand over its stake to shareholders. And when it does, it will be quick and clean.


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