Teine Energy Ltd. (Teine) is pleased to announce the completion of an equity line commitment of up to $100 million into Teine by the Canada Pension Plan Investment Board (CPPIB). Teine will use the funds to accelerate the development of its large Viking oil drilling inventory and to fund the acquisition of 52 net sections of prospective Viking oil rights from Baytex Energy Corp. In addition, Teine will retire its obligations under the existing convertible debenture held by CPPIB Credit Investments Inc. through the issuance of $104 million of preferred shares to CPPIB.
Teine is a private company with significant land holdings in Saskatchewan and is focused primarily on the Dodsland Viking light oil play. Teine has drilled over 50 horizontal oil wells in the past 12 months and established itself as an industry leader in the development of this very large resource play. Teine’s 2012 growth plans anticipate drilling in excess of 120 horizontal oil wells and building additional infrastructure. CPPIB has been an investor in Teine since June 2010 when it invested in the convertible debenture to assist Teine in drilling and land accumulation.
About Teine Energy Ltd.
Teine Energy Ltd. is a private Canadian oil and gas exploration and development company. Teine's focus is to find and develop high netback, large hydrocarbon in place properties within the Western Canadian Sedimentary Basin. Teine is one of the largest land owners in Central West Saskatchewan and is one of the most active drillers in the Saskatchewan Viking play. For more information about Teine, please visit www.teine-energy.com.
About Canada Pension Plan Investment Board
The Canada Pension Plan Investment Board is a professional investment management organization that invests the funds not needed by the Canada Pension Plan to pay current benefits on behalf of 17 million Canadian contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, the CPPIB invests in public equities, private equities, real estate, inflation-linked bonds, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in London and Hong Kong, the CPPIB is governed and managed independently of the Canada Pension Plan and at arm's length from governments. At September 30, 2011, the CPP Fund totalled $152.3 billion. For more information about CPPIB, please visit www.cppib.ca.