One of the sources said the company could fetch more than C$1 billion ($782 million) if the sale were made at current commodity prices. Serafina, whose assets are in Saskatchewan, produced 24,400 barrels of oil per day in 2021, according to the Saskatchewan government.
The sources said Serafina’s private equity holders, Bain Brook Partners and Kamcor Partners, are seeking an exit from their 2014 investments and have contacted potential buyers to gauge interest.
They added that the acquisitions companies had not made a final decision on the sale and could still keep the business. Private equity firms usually exit investments within three to five years.
The sources requested anonymity because the discussions are private. Serafina, Pine Brook, and Kamkor did not respond to requests for comment.
Crude oil prices in North America hit their highest levels in nearly 14 years after Russia invaded Ukraine. Cela a encourag les bailleurs de fonds privs des entreprises du secteur de l’nergie se retirer de leurs investissements aprs des annes de faiblesse des prix des matires premires qui les ont forcs conserver leurs long investissements lis’ temps netrole plus’ a wish.
North American oil prices are still high, but have fallen by 27% since March 7, as Russia and Ukraine hold ceasefire talks. Some bankers said this high volatility made it difficult for buyers and sellers to conclude deals in the oil sector.
The sources said Waterous Energy Fund, a Canadian acquisition-oriented private equity firm, is evaluating an offer for Serafina.
Adam Waterous, CEO of Waterous, said he believed Serafina could be sold, but did not comment on whether Waterous was negotiating to buy the company.
“If anything happens with that target, whether it’s with us or with anyone else, my expectation is that it will be months, not weeks,” Watros told Reuters.
Waterross-owned Stratcona Resources said on Monday it had acquired oil production company Caltex Resources and the Tucker oil facility in Alberta. Some of the Strathcona facilities are located in the same area of West Saskatchewan as the Serafina.
Serafina uses steam to extract crude oil at its facilities near North Battleford, Saskatchewan. The company’s financial statements are not publicly available.
Serafina will be one of the largest Canadian private oil companies to be offered for sale. Among those looking for buyers for their assets are private operators Karve Energy, Mancal Energy and Allied Energy, and major producers Repsol and Imperial Oil are also exploring asset sales.
(1 dollar = 1.2803 Canadian dollars)
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