Northern Blizzard Seeks $500 Million in IPO This Month

Northern Blizzard Resources Inc. and two of its private-equity investors are seeking to raise about C$500 million ($469 million) in an initial public offering this month, according to two people familiar with the sale.

The Calgary-based oil company plans to raise about C$350 million, while New York-based Riverstone Holdings LLC and Irving, Texas-based NGP Energy Capital Management LLC seek to sell C$150 million of stock through the IPO, said the people, who asked not to be identified because terms aren’t public.

Northern Blizzard is a production and development company focused on maximizing recovery from its large-scale heavy oil resource base, according to a June 27 filing with Canadian regulators. Its operations are focused on the Kerrobert and Lloydminster areas of Saskatchewan.

Northern Blizzard Chief Executive Officer John Rooney didn’t immediately return a phone message left before office hours in Calgary today. James David, an outside spokesman for Riverstone, declined to comment. A phone message left with NGP wasn’t immediately returned.

The sale is being led by Canadian Imperial Bank of Commerce, Royal Bank of Canada, Bank of Nova Scotia and Toronto-Dominion Bank. The IPO is expected to be priced the week of July 28.

Northern Blizzard hired Royal Bank last year to find a buyer, people familiar with the sale said in November. At the time, they said a sale could fetch about $1 billion and draw interest from mid-sized Chinese oil producers eager to gain assets overseas.

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