Tethys seeks C$46.5 million; Second Wave seals C$10 million; Enseco Energy wraps unit offering

By Stephanie N. Rotondo

Portland, Ore., Feb. 12 - Oil and gas companies took over the PIPE market Friday.

Tethys Petroleum Ltd. said it wanted to raise C$46.5 million from a private equity placement. Pacific Asia Petroleum Inc. also brought a deal, a $20 million registered direct offering of stock.

Even completed transactions were dominated by the oil and gas sector. Second Wave Petroleum Inc. announced it had closed a C$10 million private placement of stock, in addition to a public offering for the same amount. Enseco Energy Services Corp., yet another oil and gas company, said it took in C$8 million from a private unit sale. The proceeds will be used for a planned acquisition.

Among the few non-oil and gas names, Opsens Inc. said it had pocketed nearly C$4 million from a private placement of units.

Tethys seeks C$46.5 million

Tethys Petroleum announced a C$46.5 million private placement of equity.

The company said in a press release that the deal was fully subscribed.

Tethys will sell 30 million common shares at C$1.55 per share.

Proceeds will be used for project development and capital expenditures. Settlement is expected by March 3.

Calls seeking comment were not returned Friday.

Tethys' stock (Toronto: TPL) gained 3 cents, or 1.65%, to C$1.85. Market capitalization is C$290.76 million.

Tethys Petroleum is a Toronto-based oil and gas exploration company.

Pacific Asia plans direct stock sale

Pacific Asia Petroleum, a Hartsdale, N.Y.-based oil and gas company focused on China, also brought a new deal to market.

The deal originally priced Feb. 10, according to a press release.

The company is seeking $20 million from a registered direct offering of common shares. It will sell 5 million of the shares at $4.00 per share.

Additionally, upon closing, investors will receive warrants good for another 4 million shares. Of those warrants, 2 million are exercisable at $4.50 for three years, while the remaining 2 million are exercisable at $4.00 until Nov. 1, 2010.

"We are very pleased to announce the entry into agreements with investors for this offering, the closing of which will represent the accomplishment of a significant milestone in the pending acquisition of rights in the Oyo Oilfield," said Frank C. Ingriselli, president and chief executive officer, in the release.

"The participation of major institutional investors in this offering highlight the confidence the investor community has put in our business strategy and the company's future growth through this major acquisition. We look forward to closing this offering and completing the Oyo acquisition as planned and continuing our goal of delivering on shareholder value."

Settlement is expected by Feb. 13.

Pacific's equity (Amex: PAP) dropped a penny, or 0.25%, to $3.94. Market capitalization is $165 million.

Second Wave seals C$10 million

Among the day's settled deals, Second Wave Petroleum took in C$10 million via a private placement of stock.

The company also raised C$10 million in a public offering. The public offering was done under the same terms as the private transaction.

In the private placement, the company sold 5 million common shares at C$2.00 per share. Brookfield Bridge Lending Fund Inc. was the investor in the private tranche. The participation of the investor brings its total stake in Second Wave to 52%.

Proceeds will be used to "accelerate the company's ongoing exploration and development programs on its Judy Creek and its emerging Milo Pekisko oil plays, and for general corporate purposes," according to a press release.

Calls seeking comment were not returned Friday.

Second Wave's shares (TSX Venture: SCS) finished steady at C$2.10. Market capitalization is C$127.5 million.

Second Wave Petroleum is a Calgary, Alta.-based junior oil and gas company.

Enseco wraps unit offering

Enseco Energy Services also completed a financing, raising C$8 million in the private placement of units.

The deal originally priced at C$5 million with a C$3 million greenshoe on Jan. 25.

A total of 40 million units were issued - 15 million of which were part of the greenshoe - at C$0.20 each. The units consisted of one common share and one half-share warrant. Whole warrants are exercisable at C$0.25 for one year.

Proceeds will be used for a previously announced acquisition of drilling kits and related assets of a private energy services company "with significant operations in the United States," the company said in a press release. The acquisition is expected to close Feb. 12.

As such, Lane Roberts, president and CEO, was unavailable for comment Friday.

Enseco's equity (TSX Venture: ENS) declined 1 cent, or 3.33%, to C$0.29. Market capitalization is C$11.4 million.

Enseco Energy Services is a Calgary, Alta.-based oil and gas company.

Opsens raises C$3.64 million

Opsens, a Quebec City-based developer of fiber optic sensors used in the oil and gas sectors, wrapped up a C$3.64 million private placement of units, according to a press release.

The deal originally priced at C$4.5 million on Jan. 28.

The company issued approximately 4.28 million units at C$0.85 each. The units contained one common share and one half-share warrant. Whole warrants are exercisable at C$1.15 for two years.

Proceeds will be used for potential acquisitions, marketing expenses and working capital.

Opsens' shares (TSX Venture: OPS) slipped 7 cents, or 8.24%, to C$0.78. Market capitalization is C$34 million.

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