(Bloomberg) -- The billionaire chairman behind oil-sands giant Canadian Natural Resources Ltd is partaking in a private placement for a smaller domestic oil driller.
N. Murray Edwards will own notes and units of Cardinal Energy Ltd., for an investment of about C$15.6 million. Edwards told Cardinal his involvement is for investment purposes, and he could buy more shares or other securities directly or indirectly “from time to time, depending on market conditions,” according to a statement Monday.
“We view the issue positively as it extends Cardinal's liquidity window to mid-2022 and outlines a material strategic shareholder,” Luke Davis, a Calgary-based analyst at RBC Capital Markets said in a note to clients.
Cardinal plans to use proceeds from the private placement to repay some debt as oil drillers have grappled with weak crude prices in the fallout of Covid-19.
“We welcome Mr. Edwards' investment in Cardinal and his confidence in our assets and business plan and look forward to working with him as we build our company's future,” said Scott Ratushny, the driller's chief executive officer.
Edwards will own about 18% of Cardinal's outstanding shares after the private placement closes. Cardinal rallied 11% at 3:16 p.m. Monday in Toronto to 72 Canadian cents, its highest since June 10.
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