Seymour Schulich previously owned nearly 17 per cent of Pengrowth.Kevin Van Paassen
Canadian billionaire investor Seymour Schulich has snatched up more shares in Pengrowth Energy Corp., boosting his ownership of the company as oil prices show tentative signs of recovery.
Mr. Schulich announced on Thursday that he has purchased an additional two million shares of the Calgary-based company on the open market, bringing his overall stake in the oil sands producer to 18.6 per cent. He previously owned nearly 17 per cent of the company.
It's the latest vote of confidence by Mr. Schulich in Pengrowth, which operates the steam-driven Lindbergh oil sands project. The co-founder of Franco-Nevada gold company has been steadily increasing his position in the oil sands producer since March, when he announced he had acquired a 14.7-per-cent stake in the company.
In May, he boosted his investment to 15.7 per cent, and then to roughly 17 per cent, while signalling he was keen on buying an even bigger stake in the hard-hit energy company.
By mid-afternoon Thursday, Pengrowth shares were up nearly 5 per cent on the Toronto Stock Exchange, hovering at just over $2 apiece. That's more than double the price at the beginning of the year, but well under previous highs of $25 that the stock price hit back in 2006.
Like others, the company has sought to pare debt levels as low crude prices erode profit. In the second quarter, its loss widened by nearly a third to $173.4-million from $134.4-million in the year-ago period. So far this year, however, the company says it has trimmed outstanding debt by roughly $225-million.
Mr. Schulich has billed his growing position in the company partly as a defensive move to fend off potential hostile takeover bids.
He was a central opponent to Suncor Energy Inc.'s unsolicited play for rival Canadian Oil Sands Ltd., although he eventually supported a richer bid for the bitumen producer.
His deepening stake in Pengrowth comes as U.S. and global oil prices have clawed back to around $50 (U.S.) a barrel, supported by slowing output of U.S. shale oil and speculation that the world's top producers may revive talks to freeze production levels.